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A resurging market
01 December 2007
Airfinance Journal invited some leading players in the industry to discuss credit insurance.
Read more:
credit insurance
ASU
ECA
export credit
fuel price
ETS
What are your thoughts on credit insurance and how do market conditions affect it?
Tom Budgett, partner, Berwin Leighton Paisner: My clients – ie, lessors and banks – that have recourse to this type of insurance would not normally do certain types of deal unless the insurance was in place. They have made an assessment of the airline credit and decided that insurance is necessary. If it were part of the deal, they would seek to pass on the cost of insurance in their pricing. Therefore, I am not sure that general market conditions have a great impact on whether people seek the insurance or not. It's just that if the premiums go up, the pricing of the whole deal gets more expensive. But the deal would not be done at all if the insurance were not there.
Barry Moss, principal, Avocet Insurance: The insurance market tends to track the financial markets....
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