We are now past the 1st quarter of the first aviation insurance hardmarket in more than 15 years and we have a better idea of how each segment of the marketplace is being affected:
Highest increases in premium and reductions in coverage (as much as 100% – 300% ):
- Helicopter operations with owner pilots
- Commercial helicopter operations
- Turbine operations with owner pilots
- Charter operators with piston aircraft
Overall increases in the order of 10% to 20%:
- Charter Operations
- Products Liability
- Older aircraft
- Pilots aged 70 or higher
Mostly unaffected segments:
- Light Aircraft with low value, low liability limits, experienced pilots.
- Part 91 business jets.
Soft segments showing rate decreases:
- Workers Compensation
The industry consensus is that aircraft insurance rates will continue to harden and increase, the perceived period of the hard market is 3-4 years. As always extraordinary world events can change the hard market, usually for the worst.