The Aviation Committee met to consider a range of technical, regulatory and market issues affecting the aviation insurance sector.
Members discussed developments relating to automatic termination (ATC) and powers clauses, including feedback received on the proposed independent panel mechanism. It was noted that the enforceability of ATC clauses varies significantly by jurisdiction, with initial legal feedback indicating that such clauses are not effective in certain territories. Members exchanged views on how greater contractual certainty might be achieved, including potential refinements to definitions and clearer communication to brokers and insureds regarding enforceability. The role of the panel was reiterated as providing timely market guidance rather than formal legal determination.
An update was provided on committee membership, with new participants welcomed and members reminded of ongoing opportunities to contribute to sub‑group workstreams.
Reports were received from relevant sub‑committees. The Satellite Risk Committee confirmed progress on wording developments and encouraged additional member participation. The Hull War Forum highlighted current geopolitical considerations impacting aviation, including operational disruption in certain regions. The Aviation Insurance Clauses Group (AICG) confirmed that a bulletin on small aircraft wordings would be circulated, alongside continued work on updates to AVS100B, with draft material to be shared with members when available.
A claims update was noted, with no substantive report provided at this meeting.
Under any other business, members were reminded that the February 2026 meeting will include a presentation from McLarens, and suggestions for topics were invited. The Committee also discussed ongoing challenges around final adjustments, emphasising the shared responsibility of leaders and following markets to ensure timely receipt and review of adjustment data. Potential market‑wide solutions were considered, including renewed engagement with brokers and further exploration of clause‑based approaches. Members also noted continuing developments relating to Brazilian regulatory matters.
Competition Law – Please always be mindful of competition law, as unlawful conduct includes price fixing, fixing of terms, bid rigging, market or customer allocation, group boycotts, and exchange of confidential information, and there should be no discussion of competition law sensitive topics including but not limited to price, rates, and confidential information, with caution exercised when discussing wordings and policy terms.