2023 Aviation Insurance Premiums
Have you noticed changes to the structure or premiums for your aviation insurance? You’re not alone. Earlier this year, the industry saw updated reinsurance agreements, which impact how carriers approach all risks.
You should know that your insurance carrier does not take on your risk on its own. Instead, they share it with reinsurers. Consider this. Prior to 2019, industry competition had been doing a good job of pushing rates downward for nearly a decade. But since then, several headline-grabbing incidents resulted in heavy losses to both carriers and reinsurers.
For example, the March 2019 Boeing 737 Max crash resulted in an estimated $3 billion in losses. And last year, Russia seized hundreds of aircraft from Western companies, forcing the leasing company to file $10 billion in insurance claims. These high-profile losses have begun to impact the premiums other aircraft owners pay.
Inflation is another factor to consider. Both parts and labor are more expensive, pushing up the dollar amounts insurers need to dole out for repairs.
These factors are all beyond your control, but there are still steps you can take to minimize the premium adjustments. First, always send the requested information to your broker as soon as possible. The more time your broker has to secure a quote, the more likely the quote is to be a competitive one.
Also, make sure you’re working with a broker who is aligned with all insurance carriers, like Aviation Specialty Insurance. Our team will ensure that you always see the best possible outcomes for your aircraft and operation.
Any questions, contact us!