The “winds of change” blowing through the aviation-insurance industry when I wrote about insurance for Flying in the 2019 Buyers’ Guide have now reached gale-force speeds. I worked in general-property and casualty insurance long before becoming an aviation-insurance specialist, and I have never seen anything like the rate volatility today.
Aviation Insurance in Hard Times
Key Takeaways:
- The aviation insurance market is experiencing unprecedented volatility and significant rate increases, a stark shift from previous years, driven by insufficient statistical data for actuarial models and light state regulation.
- Aircraft owners can influence their premiums by obtaining an instrument rating, engaging in formal recurrent simulator training (especially for turbine aircraft), maintaining high annual flight hours, and accurately adjusting insured hull values.
- The market also presents challenges for older pilots (over 65-70 years) seeking new policies, and the COVID-19 pandemic is projected to prolong or exacerbate these current hard market conditions.
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