By Rebecca Delaney
Feb 26 - (The Insurer) - Swiss Re is set to exit its primary lines aviation business written through Swiss Re Corporate Solutions, aviation market sources told The Insurer.
Swiss Re Corporate Solutions' aviation division underwrote airline cancellation cover, as well as extra expense protection following a catastrophic aviation event.
Other products included airlines flying passenger or cargo operations, product liability for manufacturers of aircraft and aircraft components, and liability coverage for other aerospace companies.
Swiss Re Corporate Solutions was also one of few carriers offering aviation non-damage business interruption cover for airlines and airports impacted by highly disruptive events such as volcanic eruptions, harsh winters, severe hurricanes and floods.
It offered maximum capacity of 300 million euros/pounds, with minimum premium of 20,000 euros/pounds.
The airline insurance market has experienced several high-profile market losses in recent months, most recently the Delta Airlines crash at Canada's Toronto Pearson Airport on February 17.
The Insurer reported the following day that the airline market could face another liability loss of more than $100 million from the incident, given the number of injuries.
Analysis by The Insurer prior to the Delta Airlines event noted that the number of aviation incidents since the end of 2024 have placed significant pressure on the airline segment, with market loss estimates approaching annual net premium levels.
This included the American Airlines disaster on January 29, with this publication first reporting that Chubb leads the London placement and Starr leads the all-risks cover.
The Insurer also first reported that Starr leads the ~$38 million airline all-risks cover for the Air Busan jet that caught fire at Gimhae International Airport earlier that week.
At the end of 2024, we reported that Axa XL leads the all-risks cover for the Jeju Air plane that crashed at Muan International Airport, with preliminary market loss estimates coalescing around $200 million to $250 million.
Swiss Re declined to comment.