At the recent NBAA convention we had the great pleasure of meeting with most of our underwriters, there is no doubt the industry is witnessing the beginning of a soft market cycle and the shift has energized the industry. For our clients and the aviation industry as a whole this […]
Aircraft Insurance
An aircraft dry lease is a contract whereby 2 parties agree that one can lease an aircraft from the other. The dry lease CANNOT result in any profit for the aircraft owner, the reason behind this is simple: If you provide an aircraft service in exchange for profit then you […]
This was posted today on a public forum: “I learned a tough lesson this year in regards to our commercial insurance. THE BROKER MAKES ALL THE DIFFERENCE!! The broker I have been using for 25+ years was operating on autopilot, just figuring that the expiring policy would just renew. Because […]
For the past year we have been transitioning into the hard market for aviation insurance. The transition has been very tough both on aircraft operators (rate increases, less coverage options) and aviation insurance underwriters (several company closures with layoffs). Purely based on experience during the last hard market in 2002, […]
Insurance rates for aircraft maintenance companies are based on 4 main factors: What type of maintenance is done: If the company is overhauling engines, then the insurance is much higher than if they are performing routine maintenance and sending specialty overhauls to specialty shops. How much revenue. The revenue is […]
It has now been more than 3 months since the 737 Max grounding by aeronautical authorities around the world. Here is a breakdown of our estimated insurance claim on Boeing’s Products Liability policy and its Grounding Liability Coverage: Average flights per aircraft per day: 5 Average passenger seating: 150 Average […]
US aviation insurers continue to offer a maximum per-seat limit for reciprocating engined aircraft of $100,000. As the market has hardened this year there are fewer higher limit options available for consumers therefore more are being forced to accept this limit. The standard $100,000 per seat limit has gone unchanged […]
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 […]
Boeing appears to be close to bringing the Max back into service. The software changes have been tested. Here are 2 significant impacts of the Max saga in the Aircraft Insurance industry: The Max Replacement The impact on the Boeing company has been tremendous, reportedly up to $1B in outlook […]
No need to go into the specifics, for any interested party on the 737-Max saga we know that it is the result of overextending a 50 year design to appease investors, customers, and other stockholders. The Max grounding is now crossing it’s 1 month anniversary. In a previous post we […]