Aerospace companies trying to bounce back from the downturn face many challenges, including rising costs, but they are still enjoying one blessing: lower insurance costs. The latest “Aerospace Market Outlook” report from leading insurance group Aon Risk Solutions shows the industry now starting its fifth consecutive year of falling premiums.
According to Aon CEO Peter Schmitz, a big driver of this trend is that underwriters are giving companies credit for the improvements they have made in safety and risk management. “Aerospace continues to be a safe haven for capital providers,” he concluded. But everything is relative, of course. Another factor keeping premiums down is that capacity, i.e. companies competing to provide cover, is increasing once again as insurers view the sector as a less risky environment than others affected more directly by recent disasters, such as the earthquakes in New Zealand and Japan, and the floods in Australia.
