The year 2010 sa
w the introduction of the first iPad, the first jet pack available commercially, and the dawn of easily accepting credit cards on the go with Square. Our lives have become adapted to and subtly improved with new technology that it can be difficult to remember a time without these advancements. The aviation insurance industry is one field that has benefited from improved technology over the past decade.
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!
