Magazine Ultimate Jet #74
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Liability premiums<br />
To save themselves, aviation insurers recently started to increase<br />
premiums by 10% to 30% across all business classes. However,<br />
Covid-19 further threatens their sustainability. The aviation market<br />
must now face past and present losses with a reduced premium<br />
base. With aircraft fleets on the ground, aviation insurers now cover<br />
aircraft hull at the discounted lay-up rate in the policy. The drop in<br />
passenger numbers may also reduce liability premiums. The CEO<br />
of Starr Insurance Holdings Steven Blakey, speaking at the recent<br />
e-conference of the Aviation Insurance Association (AIA), surmised<br />
that in 2020 premiums could be down by 25%. With IATA reporting a<br />
-50.6% slump in passenger departures on airlines globally for the 1st<br />
semester of 2020, it is unlikely that a surcharge per ticket would yield<br />
any premium relief.<br />
Synergies<br />
How can insurers maintain their financial support to one of our greatest<br />
industries? Solutions are unlikely to come from a single source. As<br />
aviation professionals it is our task to improve our synergies, adjust<br />
our services and nurture our value-added collaborations to ensure a<br />
successful future for our industries and businesses. n<br />
More about Sturge<br />
International Services<br />
<strong>Ultimate</strong> <strong>Jet</strong> I 63
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