With 2020 off and running, people around the world are making resolutions for self-improvement in the new year. Whether it be to get in shape, spend more time with family, or travel more, it’s all about starting the year (and in this case, decade) off on the right foot to set yourself up for future success.
So, what about for your business? Resolutions don’t need to all be about the self. It’s equally important to reflect on the state of your business and look at ways to improve and streamline your efforts there. After all, more efficiency and reduced friction at the office means more time to focus on your personal goals.
With the current aviation insurance market, reviewing your policies should be your number one resolution to start the year. The market continues to transform as we enter the first quarter. Capacity is harder to find and the pricing for what is available is higher now than in the last decade. Underwriting is pushing for more sustainable margins as the losses in 2019, notably the Lion and Ethiopian Airline accidents, continue to erode insurer profitability. A number of the major reinsurance treaties renew this month and will set the stage for pricing throughout the rest of the year.
Not set to renew until later in the year? There are no signs the correction will stabilize in 2020 and rates could continue to rise for up to three years before evening out. Once that happens, insurance premiums could be two or three times what they are today, putting some owners and operators in a tough position. You may even find that your potential savings outweigh any early termination penalties. It is better to start planning ahead.
While optimal rates are a priority for many operators, it’s also a crucial time to make sure you have the right coverage for your operation and aircraft. Looking to expand with more international routes, but your coverage only covers your current region? AVIAA provides complimentary policy reviews for our members, providing a comprehensive diagnostic, letting you know where there may be crucial gaps in coverage, areas where you may be underinsured, as well as savings opportunities.
Taking the time for a review not only puts your mind at ease, knowing you are covered for any circumstance, it can also uncover potential savings and help you better project your insurance premiums over the next several quarters.
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