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:
- Aviation insurance is currently experiencing a "hard market" with significant rate volatility and widespread increases, driven by insufficient data for actuarial models, light regulation, and exacerbated by the COVID-19 pandemic.
- Aircraft owners can mitigate rising premiums by enhancing pilot qualifications (especially an instrument rating), maintaining high flight hours, completing recurrent training (crucial for turbine aircraft), and leveraging available discounts.
- It is generally beneficial to maintain a relationship with an existing broker, as switching rarely yields better rates, and owners should carefully adjust insured hull values to reflect current market prices. Older pilots (65+) are advised to stay with their current insurer.
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