The aggregate value of planes stuck on Russian territory following the nation’s invasion of Ukraine could even surpass the claims stemming from 9/11, according to a new note from WTW.Excess & Surplus Lines
The firm said that while the impact of the invasion was still unknown on the aviation industry, it said that there was ‘little hope of recovery’ for the billions of dollars in aviation assets that remain in Russia.
In a more-general overview, WTW said that rate increases continue to decelerate with more capacity entering the marketplace alongside some new insurers trying to obtain a portion of the inflated premium base.
Regarding airlines, WTW wrote: ‘Underwriters are expected to make money in 2021 despite a slight softening in the market toward the end of the year. Worldwide claims were not significant, despite a large hail loss for several domestic airlines, which did not turn out as bad as first forecast. Rates and premium saw downward pressure as capacity expanded slightly due to increased appetite from underwriters, who focused on maintaining their premium base rather than applying rate increases. We expect some buyers will see modest decreases in 2022.’