AssuredPartners Aerospace advises aircraft operators to “hold tight” as the next 12 to 18 months will be a bumpy ride in the aviation insurance market. The insurance broker noted that more details — and litigation — are emerging from losses stemming from the Russian invasion of Ukraine, as well as from the Boeing Max outage.
“We’re hearing from insurance companies that 2023 could be one of the toughest markets any of us have ever experienced,” warned Josh Jabour, a sales manager at AssuredPartners Aerospace. “It’s not just for big planes, the piston pushers will pay their share too.”
The broker pointed to a complaint that aircraft lessor Aircastle filed against various insurance and Lloyd’s syndicates for failing to provide coverage for more than $265.9 million in damages related to Russia’s invasion of Ukraine. “This is not the first legal case related to the aviation insurance market and the war in Ukraine,” AssuredPartners noted, pointing to a lawsuit Carlyle Aviation filed against 30 insurers for $700 million earlier this year and another ‘ n Dubai Aerospace against 11 insurers.
Furthermore, Boeing’s claims related to the 737 Max rose to $3 billion—”the largest in the history of the aviation market in nominal terms, after the $2.5 billion paid out after 9/11.”
All this will push up rates in renewals and these events “plunged the market into uncertainty, with some sources bemoaning the lack of reserve for Ukraine losses.”