HSBC breaks into aviation

HSBC Insurance Brokers is entering the major international airline market with a new operation under ex-Marsh broker Charles Bridges.

This is a significant move for the broker, as the market for big aviation risks is dominated by the three largest global brokers, Marsh, Aon and Willis.

Bridge's new operation is aiming to produce £7m to £10m in brokerage income within a few years.

The news of his arrival at HSBC Insurance Brokers was confirmed by chief executive Peter Ahlas.

Ahlas said he had been looking for someone with the appropriate experience to expand into the major international aviation risk market.

Bridges joined on 1 October as managing director of a newly-created aviation risk management division, which will consist of more than 30 people.

The broker's aviation operations had previously dealt mainly with smaller risks, such as an airline from one of the former Soviet republics.

Ahlas said: "There appears to be a lot of room for other players. There's a constant shift between the major brokers and that tells us there are some disgruntled insurance buyers."

However, he said the new division would pursue steady growth rather than a rapid expansion.

The broker could be entering the market just as the European Commission is threatening to stop government-assisted cover such as the UK's Troika scheme. Finance ministers will meet this week to discuss the commission's decision to end subsidies after 31 October.