Those waiting for the aircraft insurance market pendulum to swing back the other way a bit will probably need to keep waiting. Unfortunately, not much has changed in the past few months, and that’s bad news for owners.
As we’ve written recently, the aircraft insurance market is extremely tight right now. Premiums are up, and in some cases, underwriters are simply refusing to write coverage if they’re not comfortable with the risk. A combination of factors including fewer underwriters, a recent poor loss history, and rising costs of repair have led companies to increase premiums across the board. And for transitioning pilots, the story isn’t great either. A few years ago, a company may have taken a chance on a pilot with 800 hours total and 50 multi, but now that pilot may be forced to hire a helping hand for a year or more of operating experience.
“They’re still being very selective on what they write, who they write, and what risk they’ll accept,” said Greg Reba, who recently transitioned to Ebco Aviation Insurance. Reba has years of experience as a broker and working for an underwriter, and he said there’s little you can do to help the situation right now. His advice is to sell yourself well.
“Don’t treat it like a commodity,” he said. He recommends thinking of yourself as the product. Go to your broker with a list of positive attributes that will make them comfortable with assuming the risk. Show that you have regular training from someone the underwriter is familiar with, make sure your maintenance is up to date and performed by a reputable shop, such as a Twin Commander Factory Authorized Service Center, and generally don’t give them an easy reason to say no.
Reba explained that the broker’s job is to sell you to the underwriter, so the better you present yourself to the broker, the better chance you have of success. Unlike car insurance, which is sold based on highly detailed actuary tables, aviation insurance is very much a gut feel business. “The underwriter isn’t going to write a policy just because it’s out there,” he said. They need to feel as comfortable as possible that their investment is going to pay off. Reba said they’ll size up a pilot the same way anyone would.
Go in with great training, reliable and regular maintenance, and a safety-first mindset and you’ll be in the best position to mitigate your premium increases or score the policy on your recent airplane upgrade.
