Swiss Re's study on the state of the aviation insurance industry has concluded that recent losses are creating a "perilous situation" for aviation insurers.
With the number of claims rising as the ...
Swiss Re's study on the state of the aviation insurance industry has concluded that recent losses are creating a "perilous situation" for aviation insurers.
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With the number of claims rising as the pricing of premiums fluctuates, the market's long-term stability has been knocked, it said.
Several specialist insurers have been forced into insolvency, while others are fighting for survival, the report added.
Swiss Re's global head of aviation and space said: "Price has for too long been the overriding factor in purchasing decisions - now its time for insuereds to think more seriously about the quality of the insurance cover they are buying."
Swiss Re suggested that insurers should provide cover at a viable price, to move the market away from imbalance.
The report said: "Premium levels must now reflect the increasing severity of claims. Insurance buyers should seek only the greatest insurance security, where they know that claims will be paid."
