What have been the challenges for Accident & Health aviation insurers?

The global aviation insurance market hardened in 2019 and early 2020. Plans were agreed and signed off, and reinsurance programs were purchased for 2020 with expectations of premium growth through rate increases. However, by the end of Q1 2020 it was apparent that underwriters’ books would shrink and premiums would dwindle. Underwriters who were accustomed to carrying the insurance risk now had to contend with the credit risk – e.g. mid-term policy cancellations, bad debts, and clients defaulting on instalments yet still submitting claims. All of these are factors that add pressure to writing a profitable book. Other concerns, such as the mental health of aircrew, have instigated policy wording reviews.