Sixty is the new 40, and 80 is the new 60. As we learn more about nutrition, fitness, and the benefits of leading an active life, the image of the grandparents rocking on the porch has been replaced by senior citizens playing tennis or pickleball, running marathons, and flying airplanes. If only aviation insurance companies agreed.
One of the many consequences of a tightening aviation insurance market is increased pressure on older pilots to give up flying and head to the tennis court. Tom Johnson, Agency President of the Assured Partners Aerospace Phoenix office, said he thinks of the problem as like an airspeed indicator. “The green arc ends somewhere around 68, the yellow arc extends until the early 70s, and it turns into a red arc around age 75,” he said.
There are cases where pilots will continue to receive full coverage well into their 80s, but those clients are almost always customers with many years of experience flying the same airplane with the same underwriter. Aside from these special cases, Johnson said older pilots can expect to see premiums increase every year until they’re priced out.
“There’s virtually nothing you can do,” he said. It’s as frustrating for the brokers as it is for the pilots they are trying to serve. Some states have laws against dropping longtime clients. Instead, the premium will climb, and unfortunately it doesn’t help to drop hull coverage and go only with liability. The underwriters apply the same guidelines.
“Underwriters are happy to let the policy lapse,” he said. “You can’t go in there to beat them up and horse trade because most of the time they’ll say to take it or leave it.” There are differences between how they treat a new policy and a renewal. Even moving airplanes with the same underwriter can trigger new restrictions, a higher premium, and lower limits, so talk to your broker before you buy and sell. Staying in the same airplane or downgrading could be your only strategy as an older pilot.
The only other potentially helpful tactic is for the underwriter and pilot to meet face-to-face. It doesn’t happen often, and Johnson said the carrier will usually only agree if it’s a larger account. But if the pilot presents well and can make a clear case for why he or she should be covered, it can pay off.
Unfortunately, it’s mostly bad news for older pilots. They can decide to hang it up, fly unprotected, or hire a pilot. And Johnson doesn’t see better news on the horizon. He thinks even when the market loosens, the age-related policies won’t change. Good to know if you’re approaching the yellow arc.
