Premium (and Expectation) Management
It’s no secret that hardly anyone enjoys the insurance renewal process. Whether it’s your standard auto or homeowners’ insurance, life insurance, or even aircraft insurance, people generally loathe the process because it’s a reminder they have a bill coming that they despise paying. Plus, they don’t always fully understand what they’re paying for. And more often than not, people tend to put forth minimal effort to ensure it gets done, so that it’s taken care of and out of mind that much quicker.
We’re not crazy about this approach, especially when it comes to aviation insurance. Instead of taking a negative or minimalist approach, we advise taking a proactive approach because information and details are of paramount importance. A hard market means everything is looked at much more closely: pilot experience, loss history, aircraft uses, and more. In some cases, omitting information for the sake of saving time can mean the difference between obtaining terms and not.
Underwriters are not dismissing details and “auto renewing” anymore. Everything is under the microscope, which means two things:
1) The more information the better. Sell yourself to the underwriter. Include as much data, training, etc. as you possibly can.
2) Quotes will take longer to obtain. If everything is being reviewed in greater detail, it stands to reason that processes will take longer. Couple that with reduced or limited resources due to the pandemic, and you’ve got a longer, more scrutinized process.
This goes for both new coverage and renewals. The chief point is, rather than just doing what’s necessary to get a quote, we suggest you take a few minutes to consider all the relevant and key data you think might help your case. Did you attend safety seminars? Have you taken Wings courses? Did you get your IFR rating? Does your aircraft have autopilot or moving map? Did you do anything outside of the basic requirements to further your training or learning? Did you upgrade your avionics? Are you a member of any associations?
These are just a handful of the questions that, if known by underwriters, can help make your premium more manageable. If you think there’s a chance it may help your cause, take the time to include it. Folks already have disdain for paying insurance premiums; why not do everything you can to bottom them out? The extra five minutes of thought could save you good money, and after all, it only comes around once a year!