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DO YOU KNOW why insurance premiums are rising?

LRingeisen

Well Known Member
For the past year or so, we have been discussing rate changes in the insurance market. We’ve explained that we have been seeing some carriers giving up to up to a 30% increase. While this effects all aircraft types, our Vans clients with a RV-8, RV-10 or RV-12 have been largely impacted. Our lower time pilots, ie: low tailwheel time and/or low make and model time pilots are usually affected more so than others. We’ve also noticed significant increases for our older pilots. We can’t promise what the rates will be in the future, but gaining time in your specific make and model can make a world of difference when it comes to getting quotes. The more time you have in your specific aircraft, the more options we have available to quote.

We wanted to share the article below from one of the carriers, Global Aerospace. In this article, they focus on how premiums are determined, reasons behind premium increases and what a pilot can do to help mitigate those changes. Hopefully it may help to give some additional insight in the insurance market. Please note that this is an educational piece and all the insurance carriers are giving these same increases.

https://www.global-aero.com/why-lig...il&utm_medium=blog&utm_campaign=lightaircraft
 
At what point does it go down for tailwheel? I have a bit of time, numerous types, vast experience and training; all accident free. I am low tailwheel though, I think maybe 85 hours now most all in model and most all in my plane.
 
I was within a couple hundred dollars last year, they said when I went over 50 it would go down; I think I was about 40 last year. Either way it looks.like I am pretty close to you and I guess I shouldn't expect to much of a drop.
 
My first renewal on my -8 was in July and was about $115 less than the first year’s insurance. It would’ve been about $18 lower if I had completed over 50 hours in the aircraft. This was through Falcon which is the EAA insurance agency. I am a commercial pilot, instrument rated, SES and SEL, with about 1200 hours but only about 130 in tail wheel and less than 50 in the -8. As soon as they quoted this I wrote my check as quickly as I could because I knew insurance premiums have been going up. I oversee management of our company’s CJ-4 and we saw a 25% increase this year.
 
At what point does it go down for tailwheel? I have a bit of time, numerous types, vast experience and training; all accident free. I am low tailwheel though, I think maybe 85 hours now most all in model and most all in my plane.

I'm also curious about this, but in the generic (ie no make/model experience) case. I'm maybe nine months from flying, no time in type, and working on picking up TW time whenever I have the chance. I think I'll be doing well to make it to 75 hours by the time I need insurance, though.
 
accidents

There are a rising number of GA accidents late Summer and Fall of 2020. I expect rates to go up.

My rate is based on all the things on my insurance quote:

My Age (this one is probably a trade secret)
Hours in type >25, >50)
Total hours (>500)
Tail wheel hours (>100)
Runway surface condition (turf/paved)
Runway length (not sure of this metric, but it's listed)
Hangared or not (ramp life is tough)
Location (corrosion/weather)
Hull value (nice planes cost more to replace, greater risk)

It is very likely that no two quotes will ever be the same since RVs are different, people are different in experience and age, etc.
 
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One broker with have AIG in the lead with Old Republic several hundered higher. The next broker it will be exactly opposite. One thing for certain....it is increasing. I would bet it has more to do with the economic market and meeting goals than claims.
 
Under the current market conditions, the rates won't start going back down until either more underwriters get back into the business or we start having less accidents/claims. It's that simple.

That streak we just had in September probably set the competitive rates back another 2-3 years.

Why would anyone want to underwrite GA airplanes right now when there have been so many hull claims as of late? The tornado in Tennessee this spring that took out half of John Tune airport already wiped out half of the underwriters profits for this year alone. Then there was another tornado somewhere in the south that hit an airport, then the hurricane that wiped out Lake Charles.

The hits just keep on coming.... I wish I could be more optimistic but this year is one to forget on many fronts.
 
FWIW, I just got my renewal notice through Gallagher. Pleasantly surprised that it didn't go up more than a few dollars. That said, I'm liability only + ground not in motion.
 
At what point does it go down for tailwheel? I have a bit of time, numerous types, vast experience and training; all accident free. I am low tailwheel though, I think maybe 85 hours now most all in model and most all in my plane.

It's really hard to say. We used to be able to guess based off of other clients and say you would typically see a decrease if you have X amount of hours; however, with the rate increases we’ve seen lately, we’re noticing some insureds staying at the same premium as last year even if they have a certain amount of hours. Just keep in mind that the more hours you have in tailwheel models, the more options we have to quote (some companies won't even look at a tailwheel risk with less than 25 type). Of course, the best thing you can do is get time in the specific make and model.
 
So I'm paying for property losses on 9-11-2001 and losses of satellites? Just wonderful. I never figured that liability insurance rates would end my flying career but I'm on the brink. I'd go without insurance but Signature demands it.
 
From the article:
Also, it is important to continually increase your proficiency as a pilot, both in general and, more importantly, relative to the aircraft you are having insured. Earning a higher pilot rating, increasing make and model flight time and participating in safety training on a regular basis are all actions that will be taken into consideration the next time a policy is up for renewal.
I have always diligently put down all the FAAST and other webinars that I attend, but my agent recently told me they don't pay attention to that sort of thing any more. Can anyone in the industry confirm that (or not)?
 
https://www.businessinsurance.com/a...premium-hikes?utm_campaign=BI20190920Breaking

From this article, not only did the GA market help pay for 9/11 damage, but we're paying airline companies who lost money due to Boeings **** poor engineering practices. 500 million in payouts due to grounding the 737.

Absolutely. I have it on good authority from people within international re-insurance (the companies that backup the primary underwriter companies) that the Boeing fiasco is having a severe impact on the general aircraft insurance business. To the point that several re-insurers completely closed down their aviation sections due to low margins/under-performance, which was already not good before the 73Max and this gave it the final blow. Result is fewer companies remaining and trying to get back to healthy margin levels.
And the last claims from 9/11 were only finally settled in 2019, a mere 18! years after the damage.
 
Meanwhile, the aviation publications are reporting that the latest Nall report shows a decline in the accident rate. What's wrong with this picture?
 
Meanwhile, the aviation publications are reporting that the latest Nall report shows a decline in the accident rate. What's wrong with this picture?

Insurance premiums are obviously a lagging indicator.
 
Liability only

Liability only with not in motion for me. Filing a claim is almost a death sentence anyway, at least for 3 years.
 
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