Supported Finance Evolves

Recently, the insurance broker and risk management company Marsh launched the Aviation Finance Insurance Consortium, AFIC, an aviation insurance consortium offering a non-payment insurance product geared to bank-funded financing transactions for aircraft purchases. Marsh announced that two of the senior officers of AFIC were joining from the U.S. Export-Import Bank (Ex-Im Bank), where they also had senior positions. This is a notable example of an industry solution to two converging trends: the changing role of export credit agencies (ECAs) in aircraft financing and the implementation of Basel III capital rules in Europe and the U.S.