2019 marked a significant increase in insurance rates due to the hardening market after over a decade of low rates due to all the industry competition. In addition to rate hikes, stricter underwriting guidelines were imposed in many areas. While 2022 showed signs of rate increases starting to plateau, the effects from the Boeing 737 Maxx losses estimated at $3 billion are starting to trickle down into the general aviation segment. In addition, aircraft confiscated in Russia due to war sanctions could cost the industry an estimate of $11 billion only adds to the reinsurer burden.

Not only aviation losses cause insurance rates to increase. Natural disasters like hurricanes, floods, and fires all contribute to the reinsurance rates. Inflation has also become a current factor, affecting parts and labor costs for claims. As a result of increased reinsurance rates, we expect aviation premiums to climb another 15-25% as their treaties are renegotiated.

While the increased rates are the ‘new normal’ compared to just over a decade ago, being proactive can minimize the impact. Be prepared and start early! Upon request, gather all the required information for renewal and return it promptly to your insurance agent. Often, complex policies cannot be quoted through a simple algorithm and may require a stream of communication between the underwriter and agent prior to formalizing a quote.

While rates are increasing across the board, there is still competition amongst the aviation insurance carriers. Working with an agency such as Aviation Insurance Resources (AIR) who is appointed by all the major aviation insurance markets will provide access to all the quotes available on your aviation risk. All the agents at AIR are pilots and specialize solely in aviation related policies. To learn more about your upcoming aviation insurance renewal or purchase call us at 301-682-6200 or request an insurance quote online today!

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The McGowan Allied team has more than 35 years of experience in the entertainment insurance industry. “Many organizations look to the AM Best rating to affirm an insurance company’s ability and economic wherewithal to resolve its long-term liabilities” said Drew Tewksbury, Director of Marketing at McGowan Allied. “Our recent AM Best upgrade to A+XV affirms our financial strength and ability to keep obligations to our clients.”

T.H.E. will continue to underwrite the Lighter Than Air Insurance Program with minimal changes in staffing and process. Due to the change of structure at McGowan Allied, there are important compliance and notice requirements that will be sent out to all policies under the Lighter Than Air Insurance Program. Policyholders will be issued a state required “Notice of Non-Renewal” of their insurance policy by certified mail. Policyholders have been receiving these notices 90 days in advance of expiration, and Patrick A. Smith, Manager of the LTA Balloon Insurance Program, has been contacting pilots in advance to advise them of the statutory notice. As there have been no major changes to the Lighter Than Air Insurance Program, policyholders will be receiving their direct renewal terms.

“We are fortunate in the balloon community to have a choice where we place our insurance coverage,” said Smith. “Having two underwriters that are rated A+ (Superior) writing the majority of policies in the industry, we can be confident in the stability and future of our sport.”

To obtain a quote or discuss these industry changes with a pilot, please contact program manager Patrick A. Smith at 301-898-2120 or visit Aviation Insurance Resources online at www.Air-Pros.com/LTA.

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Hello, my name is Victoria Neuville and I am an aviation addict; so much so, that I turned it into a career. In my almost decade long career as an aviation insurance agent, my views of the aviation industry have formed differently compared to that of a career pilot. My profession, in addition to 15 years of flying behind me and recently becoming a flight instructor have introduced me to many great aircraft. One that has always stood out to me was the Sonex line of airplanes.

At first introduction at EAA AirVenture/Oshkosh years ago, the Sonex almost appeared like a toy to me. It was smaller than what I was used to flying then and its boxy build had me curious who was flying these things. I noted, however, that the low build cost could not be beat! It was not until I started speaking regularly with those that have built and flown a Sonex aircraft that I became convinced this experimental aircraft was something special. When Robbie Culver, president of the Sonex builders Foundation asked me to contribute to their newsletter, I knew I had to give Sonex pilots and owners honest feedback on the status of the Sonex aircraft through the insurance industry’s eyes.

As you may have heard, the ever-cyclical insurance market has entered a period of rising premiums with increasing restrictions and training requirements. This is the result of an insurance market saturated with aviation underwriters fighting over your business with one sole bargaining tool: price. The market would not have remained viable without increased rates and a focus on increasing safety. These increases have hit homebuilt, tailwheel, retractable gear aircraft and rotorcraft the most. Increases are averaging 10-30% and sometimes more.

Zeroing in on the Sonex specifically, despite over 600 kits completed, it can be difficult to locate a CFI with Sonex experience to provide the required insurance checkout. Often, a CFI’s Sonex time is minimal. In addition, dual instruction is not possible in the single seat Onex or SubSonex. As single experimental aircraft generally are not available, it is nearly impossible to build time in a non-owned Sonex prior to the completion of a build. Quality of training and pilot experience play a large factor in the underwriting of this aircraft. Hence, you will see new-to-Sonex pilots paying a heftier rate compared to that of a seasoned Sonex flyer. As the aircraft popularity grows, hopefully these hurdles will become a thing of the past.

The good news is that aviation is always evolving, and with that, pilots. If we as a group place an emphasis on training and increased safety perhaps the rates will eventually reflect the incredible value of these homebuilt aircraft.

If you are looking to build or purchase a Sonex aircraft, Aviation Insurance Resources (AIR) shops all the major aviation insurance markets to obtain the best available rates on your aviation risk. Call 301-682-6200 or apply only today to obtain a competitive quote from a knowledgeable agent and pilot!

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Every pilot becomes an amateur weatherperson as soon as their primary instructor signs off on their ability to fly solo. Although weather is not one of the things that an aviator can control, it’s one of the defining factors which determines the outcome of a pilot’s day, even if they’ll spend it wheels down. During my time as a pilot I have found that knowing the METAR flight category, wind speed, ceiling and visibility was usually best predictor of my mood for any specific day.

Of course, that’s because I’ve been friends with the best A&P’s who have kept my bolts tight and the oil on the inside, and I’ve had the best peace of mind by insuring through Aviation Insurance Resources (AIR) who protects me against everything else beyond the pre-flight. I am an engineer by trade so it makes sense that I enjoy working on experimental amateur built aircraft, which can be expensive to insure. AIR worked hard for me to find excellent coverage at a great price for both my Rans S-7 and my Vans RV-4 aircraft; ensuring that my hard work and bottom line are protected from whatever may come our way.

My machine is flight ready, I am protected from uncertainty, and every part of me wishes I was above. How do I know if I should peel my eyes off my work computer and get to the airport?! I did what any engineer would do: I built a widget.

My little gizmo sits on your desk, grabs your local METAR off aviationweather.gov, crunches the flight conditions against your personal minimums, assisting in your go or no-go decision. It’s a fun thing to watch as weather moves through your local area, switching from green (VFR), blue (MVFR), red (IFR) and pink (LIFR), while showing YES or NO.  Students can set their instructor’s solo minimums so they can stare at it waiting to switch off “NO” like a kid on Christmas while veteran ATP’s can hook it up so it says “YES” in more angry colors. Status lights on the side show you why the device is telling you that your Saturday is better spent kicking tires than spinning props.

The whole thing is built on top of a custom designed printed circuit board inside a 3D printed case, CNC machined acrylic panels and a tiny WiFi enabled microcontroller running C++ under the hood, all of it designed and built in my basement in Maryland. If you want to learn how to do projects like this yourself, head to adafruit.com for kits and tutorials. They are a fantastic company and I can’t recommend them enough. If you’d rather just get one of these without re-inventing the airfoil, send me an email (grimace.aviation@gmail.com) and I’ll be happy to send you one so you know if you should stop reading this blog and head out to the airport!

Aviation Insurance Resources (AIR) is a company of pilots protecting pilots. We have Kyle’s weather gizmo for a quick and easy way to begin our pre-flight work. We thank Kyle for taking the time to share his experience with AIR and love hearing the innovative ways our customers take to the skies. We would love to hear your story and assist you with your aviation insurance needs! Call us today at 301-682-6200 or visit us online at air-pros.com!

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Guest post by Sarah Rovner, Owner: FullThrottle Aviation

Since a young age, aviation was the unattainable goal that I often thought about while looking up to the skies and seeing airplanes pass overhead on invisible roads.

It wasn’t until I was 21 and fresh off of active duty in the Army that I decided to take my first step toward the skies. After an unplanned discovery flight, I fell in love with aviation and decided to pursue all of my licenses and ratings. By the time I was 22, I had obtained my private pilot’s license and by the time I was 25, I had started my own aviation business in my relentless pursuit of passion.

When I first started FullThrottle Aviation in November 2013, I was a new flight instructor looking to bring custom flight training to eager students all over the country. Over time I experimented with many facets of aviation, from instructing to flying vintage airplanes without an electrical system. As I gained more experience, I realized that what I loved most was adventure. As fate would have it, my aviation path changed after a few years in business when I was first approached to ferry aircraft. My 1^st was in a Citabria from Houston to Las Vegas, my 2^nd was in a Cessna 175 from Show Low, AZ to Houston, TX, and my 3^rd was my first big break when I was asked to ferry a Cessna 188 Ag Truck, a crop duster, from Canada to the small country of Belize. As a result, I started on a spiritual journey and fell in love with the Belizean culture and it became a second home for me. My spirit had now tasted adventure and triumph over challenges, and I knew this was the path I was meant to take.

Throughout all of my adventures, I knew that safety and security needed to be a priority. My insurance journey started with a flight instructor non-owned policy. I first worked with Victoria at Aviation Insurance Resources (AIR) on the insurance policy for my 3^rd ferry and a challenging one, the Ag Truck. Despite challenges due to the nature of the flight, the type of aircraft, and foreign registration, I soon discovered that AIR could take care of almost anything, no matter how challenging. The agents at AIR are the most knowledgeable and experienced I have ever met. Not long after that big break with ferrying, I realized that my business was growing and I wanted to bring on more pilots. To protect myself and my pilots I went to Victoria for solutions. She was able to find an insurance policy for my business that was comprehensive and affordable and allowed me to truly reach for the stars.

When I bought my beloved Super Cub, Patches, I went to her to take care of my biggest investment. I have worked with AIR countless times to obtain coverage for my clients, friends, and colleagues. I have found that there is no situation too challenging or difficult for them, and they even welcome the tricky issues and hard questions. Victoria and the team have earned my trust, respect, and confidence for life, and I rest well knowing that I have an exceptional team who is always prepared to take on life’s risks. FullThrottle Aviation now has 26 pilots moving planes all over the world, and with Victoria and AIR at the helm, I know I’m always in good hands.

To learn more about FullThrottle Aviation you visit fullthrottleaviationllc.com or call Sarah at 832-510-4673. To discuss your aviation insurance needs, contact the experts at AIR at 301-682-6200 or submit a quote request online today!

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Previously, multiple methods had to be used by an aviation insurance broker to submit quote requests to various insurance carriers. Some had to be emailed, some entered online through a website, and others had to be faxed! Properly covering the markets to obtain the best options was a lengthy process for the broker. On the underwriting side, carriers may receive a quote request for an aircraft from multiple agents, creating further work for them. Therefore, they implemented registration number blocking, where an underwriter would only release a quote for the aircraft to one broker, generally the first to submit the request. Thanks to computer software developments, registration number blocking is a thing of the past for most non-commercial light aircraft insurance carriers.

Today, quoting is more streamlined and fax machines collect dust versus submit and print out quotes. Computer software integrated into each insurance carriers’ quoting program have sped up the quoting process. When ten years ago a quote for a Cessna 172 may have taken a day or two to receive all available quotes back, today most carriers can provide their quote within minutes!

With quoting becoming almost automated for many aircraft, underwriters found themselves having to find new ways to stay competitive in the aircraft insurance industry. This meant broader policies, more flexible training requirements, and of course, a lower rate. Thanks to this insurance carrier rivalry, we soon entered what is called a “soft market” and pilots and aviation business owners everywhere benefited from flexible underwriting and record low premiums.

As with any industry, insurance is cyclic, with major changes seen every two to five years. After enjoying low rates for nearly ten years, the aircraft insurance market is once again hardening due to poor loss ratios. Stricter training requirements are being implemented to increase aviation safety and in order to maintain viable aviation insurance markets, the rates had to rise as well. Just as our tech has become the new normal, so have the change in insurance guidelines.

From equipment in the office to systems in the aircraft, technology has come a long way since the dawn of aviation and the evolution of the aircraft insurance policy. To see how your aircraft insurance stands up in the new market, call 301-682-6200 or request a quote online today with Aviation Insurance Resources (AIR). AIR has been around since quote requests were done by fax and has been through both hard and soft markets. All their agents are pilots and will shop all the major aviation insurance markets to find the best available rate for your insurance risk!

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Gyroplanes, or also called, gyrocopters offer the epitome of flight. Combining the benefits of rotorcraft and fixed wing airplanes, they are agile, allow the wind in your hair, and have been historically inexpensive to operate. However, with insurance rates on the rise many gyro owners would have to disagree on the latter.

The hardening aviation insurance market

Historically, aircraft insurance rates were very cyclical with a 3 to 5 year hard market featuring higher rates and rigid requirements followed by a 3 to 5 year soft market where pilots would experience low rates and flexibility. The insurance industry is now emerging from an almost decade long soft market. The cost of claims has increased and with the low premiums insurance underwriters have found themselves losing money. In order to preserve the vitality of the aviation insurance market, underwriters are increasing rates a minimum of 10-30% and tightening underwriting requirements. Recently, another aviation insurance underwriter who previously was the most competitive for gyroplane insurance decided to exit the gyro market citing the poor loss ratio on this class of aircraft.

Not your father’s gyro

A popular argument from gyro pilots is that the underwriters view gyroplanes as they were in the past, a light aircraft quickly built in a garage with an untrustworthy two-stroke engine. Today’s gyros look futuristic compared to popular gyros such as the Benson decades earlier. They are sturdier, with reliable four-stroke engines, have higher horsepower, and some, like the AutoGyro Calidus and Cavalon, are type-certified by the FAA! With a more complex and certified gyroplane, however, comes a higher purchase price and therefore insurance premium. These factors create the additional responsibility of proper training to insure people and property both inside and outside the aircraft are kept safe.

Safety first

“Proper training in any aircraft is key to safety.” Starr Aviation underwriter Jeffrey Tippins recently stated during a discussion on gyrocopter insurance. Starr has been a supporter of gyroplane insurance from the beginning but stresses that increasing gyroplane safety is the only way to see a reduction of rates in the years to come.

One such operation dedicated to increasing gyro safety is Gyropedia.com, an online resource center for gyro training. Pilots can watch training videos online, CFIs can record pilot experience, and insurance underwriters can view pilot progress to best rate the insurance policy. But it’s a team effort. ALL gyronauts must work together towards the common goal through standardized and regular gyro training.

Pilots Protecting Pilots

Aviation Insurance Resources (AIR) was at the forefront of the Light Sport Aircraft (LSA) movement being the first to get underwriters to write this class of aircraft. It was no different with gyroplane or gyrocopter insurance due to the lasting and respectful relationships built with underwriters over the years. This has not changed with the hardening market and they continue to provide the gyro community with customer service with integrity and the best available rates. To obtain your gyro insurance quote call 301-682-6200 or request a gyroplane insurance quote online today!

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1. Be Prepared – Whether it’s time for your insurance renewal or a new purchase, having all your ducks in a row will help your agent get on task more quickly. This means providing updated pilot history forms and any current applicable training certificates. For a commercial operation it may involve having previous and estimated yearly revenue for maintenance and fuel, or annual utilization of club or flight school aircraft.
2. Start Early – For more complicated or larger insurance policies it is important to provide yourself plenty of time for renewal. Have your agent begin working on your renewal early. Underwriters may have questions on your policy and could take a lot of back and forth prior to receiving firm terms.
3. Be Flexible – Change is difficult, especially when many pilots have been enjoying a soft market for over a decade. The aviation insurance market, like many businesses is cyclical. The rates and requirements we are experiencing now are comparable to the rates before 2008. While it can be challenging to accept these new terms, they ensure the aviation insurance market remains viable and pilots insurable.
4. Consider your Aircraft Needs – Senior pilots have been greatly impacted in this hardening market, specifically those in retractable gear and multi engine aircraft. If a single engine piston fixed tri-gear aircraft can easily fit your aircraft needs, this will often result in a better rate and insurability on your aircraft insurance.
5. Training – Consistent training has been proven to increase aviation safety. The recent increase of pilot training requirements on aircraft insurance policies should lower the loss ratio the carriers experience and may eventually assist in lowering rates again. Many carriers will not write pressurized and turbine aircraft if you do not have plans to do annual training. It is very helpful to provide a training certificate that shows the date and location training was completed.
6. Instrument Ratings – No matter the aircraft you fly, one way to save money on your aircraft insurance is to earn your instrument rating. This is increasingly important for pilots transitioning into higher horsepower and retractable gear aircraft. The instrument rating will open more markets willing to quote your aviation risk and therefore offer more competitive rates.
7. Work with a Pilot – Not all insurance policies are created equal. Aviation insurance is a whole different ball game compared to home and auto. Placing your business with an aviation insurance specialist and pilot that understands the industry will provide peace of mind that you are properly protected in this new market.
8. All Markets – Working with an aviation insurance specialist who is appointed with all the major aviation insurance markets will help pilots obtain the best available options. While the claims ratio fuels the industry premiums, there is still competition amongst the carriers. Having an agent that can quote with all of them saves pilots both time and money.
9. Be Loyal – If you are currently working with an aircraft insurance agent that you trust and has consistently provided quality service, think twice before shopping your policy with another agent as it could disrupt the market for you.
10. Call Aviation Insurance Resources (AIR) – AIR is an aviation insurance broker for pilots by pilots. Each agent at AIR brings a unique aviation background to the table and is dedicated to guiding you through this new insurance market. AIR works with all the major aviation insurance carriers and will find you the best available coverage and rates.

It’s hard to predict this ever-cyclic aviation insurance market, the hardening may be temporary, and it could see another change in the next two to three years. Pilots and aviation businesses may have to weather the storm and sudden change, but Aviation Insurance Resources (AIR) will be with them each step of the way. To learn more about the hardening aviation insurance industry or how AIR can support you during this new cycle visit www.air-pros.com or call 301-682-6200 today!

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For the last decade, insurance premiums have been at an all-time low due to carrier competition. Aviation underwriters were all competing for the same group of business and the way to win the account was to provide the lowest rate. With these lower rates, however, the aviation industry didn’t experience any fewer losses, especially with the countless natural disasters experienced recently. As with any business, the rates had to increase in accordance with the outgoing costs.

One route to reducing the amount of aviation accidents and claims is thorough and regular training. While training on an LSA is less rigorous than the annual training required for larger aircraft, it’s important to receive in depth initial training in that aircraft and have a check up on the pilot’s skills beyond the required flight review. Lighter aircraft can be easier to break from something as simple as a hard landing. To mitigate the aviation insurance risk, many underwriters are now requiring stricter initial training if a pilot is new to the aircraft and are expecting to see a certified flight instructor (CFI) experienced in that specific make and model providing the dual instruction.

If you are purchasing a new-to-you LSA, it’s important to come to your aviation insurance broker prepared. Have your CFI picked out ahead of time and their pilot history readily available. This will provide some peace of mind to the underwriter as they’ll already know the experience of the CFI providing the dual instruction that they will ultimately require.

Whether a new purchase or renewing your current LSA aviation insurance policy, it’s important to find a knowledgeable broker with access to all the major aviation insurance markets. As mentioned earlier, competition was the key to the lower rates of the past and still play a major role in keeping your aircraft insurance increase minimal. Aviation Insurance Resources (AIR) is an aviation insurance broker where every agent is a licensed pilot. Their piloting experience combined with being appointed with every major aviation insurance carrier provides their customers with comfort knowing they are purchasing the broadest package of coverage at the best available rate.

To learn more about the changing aviation industry and to see how your rates are being affected, call AIR at 301-682-6200 or submit a quote request online today at www.air-pros.com!

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