Brokers report increasing problems placing aviation business, as one major capacity provider considers pulling out of the local market.

Swiss Re Corporate Solutions has confirmed it is reviewing the future of its Australian aviation business, as the company looks to improve profitability.

It has stopped writing new aviation business, leaving “a huge hole” in the local market, according to brokers. Without Swiss Re Corporate Solutions, QBE and Lloyd’s would be the only significant remaining capacity providers.

“The market is about to get very turbulent,” one broker said.

“Swiss Re Corporate Solutions pulling out would leave a huge hole in the market – they are the second largest capacity provider in Australia.

“With Lloyd’s also pulling back, there will be people flying around without any insurance.”

A Swiss Re Corporate Solutions spokesman told insuranceNEWS.com.au a strategic review was taking place with the aim of improving profitability, but that “different options” were still being considered.

“There are a number of lines where we are having to reduce exposure,” he said.

“General aviation is one of those. We are still renewing business while options are being discussed, and of course any current commitments will be honoured.”

In 2015 Swiss Re Corporate Solutions acquired the aviation business of Assetinsure, which resulted in the addition of the Brisbane office.