The aviation insurance market is continuing to soften as a result of new market entrants, increased appetite from existing insurers and the downturn in exposures due to Covid-19, according to WTW.\r\n\r\nIn its Aerospace Practice Market Review Q1\/Q2 2022, WTW says that while insurers were still pushing for premium increases (+5%) in Q1 and Q2 of 2022, flat renewals were achievable where there were no new losses or deterioration. \u201cIncreased competition for desirable business has led to a deceleration of movement within the market conditions,\u201d says the broker.\r\n\r\nIt adds that a few insurers see this as an opportunistic moment to seek larger shares on desirable risks, which is having a stabilising effect on the pricing of such risks. But it warns that it is very challenging to anticipate the direction the market will take and when a shift might occur.\r\n\r\nDarren Porter, managing director, aerospace, WTW, says: \u201cWith the current market volatility, which varies by sub-sector and region, more than ever we advocate early and continual engagement with your service team, coupled with the application of our data-driven analytical capabilities to deliver optimum results.\u201d\r\n\r\nThe broker also notes that the market has found itself \u201cshort on headcount\u201d. WTW says it has seen \u201cover 40 London underwriters change employers during the last two years, and this \u2018shuffling\u2019 looks to continue as gaps remain unfilled and new entrants seek to employ underwriters to fulfil their portfolio and income ambitions\u201d.\r\n\r\nIt notes that most insurers are currently adopting a cautious approach to their portfolios and this has led to either a physical reduction in capacity or to a reduced appetite. As a result, pricing is remaining level in certain areas but more commonly increasing in the majority of cases, says WTW.\r\n\r\nThe review examines whether a storm is brewing for the aviation insurance sector as a result of the current crisis in Russia and Ukraine. WTW believes that while aerospace isn\u2019t immediately affected by the crisis, it is anticipated there will be an impact on pricing as the situation evolves and the scale of potential losses becomes clear. WTW estimates that losses from Russia and Ukraine could total $10bn-$11bn for the aviation sector, much greater than the 9\/11 loss, and this would impact insurance pricing across the aviation portfolio.