The Aviation Insurance Market has gone through some major changes this year.
From 2008-2017, new aviation insurance companies entered the market and rates hit record lows. This is what’s called a (soft) insurance market, where premiums are low, there is a surplus of insurance markets and underwriting guidelines are loose.
Starting at the end of 2018, the market began to shift and rates started to increase.
This is due to many factors:
- Increasing cost of aircraft repairs and a higher level of liability awards.
- Reduced capacity. Multiple insurance markets have exited Aviation Insurance.
- Several years of higher than average and costly Aviation Insurance Claims.
- Boeing 737 MAX grounding has hit the Aviation Insurance Industry with hundreds of millions of dollars in losses.
Based on the data so far this year, we are seeing that the companies are increasing premiums from 5%-50% across the board. Every company is raising rates, this is an industry-wide increase regardless of aircraft type, experience, location, etc.
We have strong, long-term relationships with all of our companies. Based on conversations with underwriters and current trends, we are anticipating that premiums will continue to increase for the next 3-4 years.
Unfortunately for us and every aviation insurance broker in the US, these premium increases are out of our control.
Regardless of these changes in the market, our core values are not changing. BWI is here to serve our customers and we will continue to leverage our company relationships, combined with our growing experience to ensure our customers are with the very best companies.
If you have concerns about your renewal coverages or renewal rate. Please visit us online at www.bwifly.com or give us a call at 800.666.4359
Our knowledgeable agents are on hand to provide information and guidance to help navigate this new market.
You can also submit a quote request online here