More about the author: Secretary General of the International Union of aerospace insurers (IUAI)
The aviation insurance sector influenced by the same factors that the insurance industry as a whole. Aviation insurance remains a highly competitive business, the market is filled with a large number of companies. However, the sector in which they try to apply their capacity, recently suffered a lot of losses.
Indeed, among the underwriters and other market participants widely spread common opinion: no one remembers a time when insurance rates been so low as today. A more acute problem makes that all this is happening against the background of continued low investment income, and the more pressing the need for a positive result from the underwriting.
Earlier, when some types of insurance rates and the yield decreased, it was possible to find other species in which results were better. This allowed insurers to mitigate the effect of the soft market. But today the situation is different: it is difficult to find any kind of insurance about which you could say that things there are going well.