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Member, Beacon International Group, Ltd.
HAMILTON, Bermuda—Ironshore Specialty Co. is entering the aviation insurance market as brokers report firming rates for several lines of aviation coverage.
New York-based Starr Aviation Agency Inc. will underwrite aviation risks for Ironshore Specialty, a subsidiary of Hamilton, Bermuda-based Ironshore Inc., according to an agreement that the companies announced Wednesday.
Ironshore will offer coverage to airlines, aviation manufacturers, airports, aviation refuelers, fixed base operations, corporate aircraft and other general aviation risks worldwide.
The Ironshore unit will be led by Gerald E. Frick, who was global leader of the aviation practice at broker Marsh Inc. before his recent retirement, the company said in a statement.
Ironshore’s entrance comes as the airline and aerospace insurance markets are firming and established aviation insurers face one of the worst claims years in history.
The airline insurance market has seen lead hull and liability premiums rise by double digits for six consecutive months and 19% overall this year, according to Aon Ltd in London. The broker projects about $2 billion in claims by the end of 2009, compared with a long-term annual average of $1.4 billion.
“The bottom line is that the hard market conditions are likely to remain in place until well into 2010,” Aon said in an aviation market report released this week.
Premium income from aerospace renewals so far in 2009 is roughly equal to premium income at the same point in 2008, according to a third-quarter pricing index released this week by Willis Ltd. in London.
While plentiful capacity and cash-strapped buyers have kept pricing competitive, nearly as many accounts have seen premium increases as decreases, Willis said.
“The market remains under considerable pressure to push up premium levels or at least maintain expiring premium levels across all aviation and aerospace insurance sectors,” Willis said in its report.