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Aerospace Practice Market Review

Q1 2021

Aerospace
N/A

February 24, 2021

Following a challenging year for the aerospace industry, our experts have put together their expectations and predictions for this coming year.

Last year was an extremely challenging year for aerospace organisations. As the impact of COVID-19 sent shockwaves through the industry, it came at a difficult time for the aviation insurance market, with underwriters under significant pressure to increase premiums across their portfolios.

Our Willis Towers Watson team provides a unique outlook on the upcoming year and details key areas of focus in order to best protect premium spend, maintain coverage and optimise your insurance programme as a period of recovery begins.

Those insureds with a lower loss ratio or those who choose to retain more risk will be treated less severely and are more likely to receive some recognition of COVID-19 impacted exposures against renewal premium. Insurers will also be more granular in their assessment of the different aerospace subclasses. Some other trends we expect to see in the coming year are:

Willis Towers Watson’s outlook for 2021 and beyond

Early signs of developing appetite slowing down premium increases and restrictions in coverages
Insurers reduced shares could lead to composite pricing increases
Pricing re-calibration for placements transitioning from domestic markets into London
Benefit of long-term market relationships to continue
A return to greater differentiation with insurer focus on loss ratios of individual segments / geographies
A potential return to long-term deals for preferential portfolio segments

Our market insight document explores why, despite continued headwinds, there might be some room for cautious optimism in 2021. To learn more, please complete the form to download our Aerospace Practice Market Review Q1 2021.

Contacts


Darren Porter
Managing Director, Aerospace

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