Rising repair costs could push the market back into turbulence, CEO warns
The US aviation insurance market is currently experiencing a rare window of relief, with rates softening after years of pressure. However, this respite is likely to be short-lived, one underwriter has told Insurance Business.
Climbing repair and replacement costs, driven in part by tariffs and global supply chain shifts, could soon bring this temporary dip in pricing to a halt, according to Jon Howard (pictured), a licensed pilot and CEO of Mach 2 Underwriters.
“Right now, we’re seeing a downward trend in rates,” Howard said. “But I believe that will be short-lived, maybe 12 to 24 months. Claims costs are rising too fast for a prolonged soft market.”
The biggest concern for underwriters like Howard is…