Gallagher Aviation Insurance Solutions for a Complex Industry

Gallagher has been a leading provider of aviation insurance solutions for over 30 years, with a team of experts who understand the unique risks and challenges of the industry.

Their experience and expertise have earned them a reputation as a trusted partner for airlines, airports, and other aviation-related businesses.

Gallagher's aviation insurance solutions are designed to be flexible and tailored to meet the specific needs of each client, whether that's a small charter operator or a large commercial airline.

They have a deep understanding of the complexities of the aviation industry, from regulatory requirements to emerging risks and trends.

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The aviation insurance market is facing significant challenges, particularly with the growing divergence between direct and reinsurance markets. This disparity has resulted in softening rates for direct markets, making it difficult for insurers to achieve pricing adequacy.

Direct markets have struggled with an oversupply of available capacity and a benign loss environment, driven in part by the COVID-19 pandemic's impact on flying activity. This has put pressure on insurers who are struggling to balance their books.

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The reinsurance market, on the other hand, has experienced a surge in Excess of Loss premiums, with rates increasing more than threefold since 2019. This shift has led to a more selective capacity for Quota Share placements, emphasizing improvements in treaty terms and conditions.

Capacity for reinsurance has become more limited, with reduced availability of limits until increased pricing attracts new capacity. This has placed additional pressure on reinsurance markets, which pass on these rising costs down the value chain.

The aftermath of Russia's invasion of Ukraine has sparked a wave of litigation, with claims related to approximately 400 Western-owned aircraft in Russia totaling as much as USD 10 billion. Insurers are contesting these claims on various grounds, and recent developments, such as the partial settlement between AerCap and Russian state-owned insurer NSK, have brought some relief.

However, fresh claims from aircraft lessors have emerged, suggesting that the dispute and its uncertainties will continue to influence the market for the foreseeable future.

Customization is key to Gallagher Aviation Insurance's success. Jason Hendrix, a pilot himself, can answer any question about an airplane, making him a valuable asset to clients.

Their team has experience with complex projects, such as helping a mom-and-pop airline and covering aviation risks in war-torn countries. This expertise is crucial for clients with unique needs.

Gallagher Aviation Insurance can handle specialized corporate programs, like the one operated by KBR, which has air bases in multiple countries. Chrissy McCreary, their supervisor, praises Hendrix's ability to navigate complex projects.

A global policy is a significant benefit of working with Gallagher Aviation Insurance. They successfully implemented one for CGG, a company that acquired a fleet of 28 aircraft in four countries.

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