Down, Down, Down
Over the last 10-12 years, “we’ve seen steadily decreasing rates across the board” for aviation insurance, says Jim Pinegar, vice president of insurance services at the Aircraft Owners and Pilots Association. “That started to stop mid-last year—we thought we were seeing a small bump in the market—but then that was quickly eroded.”
“If we’re talking about corporate aircraft, pro pilots, turbines, jets, things like that—pricing in that area was the first to get soft and it is still by far and away the softest,” French agrees. “The market has found the bottom in terms of pricing for industrial aid aircraft risks.”
The same goes for smaller aircraft in the pleasure and business space; product liability, too, remains “hypercompetitive,” French says. Five years ago, companies like Berkeley, Old Republic and QBE didn’t offer coverage solutions in aviation product liability, but now, “they’re all aggressively writing aircraft products, especially the non-flight critical parts,” French points out.
If you look at the market piece by piece, French says some areas of aviation pricing are slightly harder than others—workers comp, agricultural aircraft, both fixed- and rotor-wing, for example. French also observes a “significant change in market appetite” when it comes to turbine and jet aircraft operated by owner pilots.
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