When you shop for aviation insurance, you’re ultimately buying a policy from an aviation insurance carrier, the company that actually underwrites your coverage, pays your claims, and determines your premium. But for most aircraft owners, carriers are a bit of a mystery.
That’s because in aviation insurance, you don’t usually deal directly with the carrier. Instead, you work with a broker, and your broker works with the carrier. This makes it critical to have a broker who knows which carriers are the best fit for your specific needs.
In this guide, we’ll break down what aviation insurance carriers do, how they differ from each other, and what to consider when evaluating coverage options.
What is an Aviation Insurance Carrier?
An aviation insurance carrier is the company that provides financial backing for your policy. They:
- Evaluate risks (via underwriting)
- Set policy terms and premiums
- Pay out claims when a covered loss occurs
Examples of well-known U.S. aviation insurance carriers include:
- Global Aerospace
- AIG Aerospace
- Old Republic Aerospace
- USAIG
- Starr Aviation
- Allianz Global Corporate & Specialty
Each carrier has its own appetite, meaning the types of risks they prefer, the aircraft they insure, and the coverage limits they’re willing to offer.
How Carriers Differ in the Aviation Market
- Risk Appetite
One carrier may love insuring piston single-engine aircraft but avoid rotorcraft. Another may focus on corporate jets and commercial operators.
- Coverage Options
Some carriers offer broader coverage terms, such as open pilot warranties, while others may be more restrictive.
- Claims Handling
The speed, fairness, and communication of claims adjusters can vary significantly between carriers.
- Financial Strength
A carrier’s financial rating (A.M. Best, Standard & Poor’s) indicates their ability to pay claims, a critical consideration in aviation where losses can be high.
- Pilot Requirements
Minimum pilot hours, training requirements, and currency standards differ by carrier.
The Role of the Broker in Carrier Selection
Most aircraft owners won’t know which carriers are the best match for their profile. That’s where your broker comes in. A knowledgeable aviation broker will:
- Know the underwriting preferences of each carrier
- Shop your risk to multiple carriers to get competitive quotes
- Negotiate better terms based on relationships and track record
- Explain the differences in coverage so you can make an informed decision
At BWI Aviation Insurance, we have direct appointments with most major U.S. aviation insurance carriers, meaning we can go straight to them without a wholesale intermediary.
Example Scenario
You own a Cirrus SR22 and are a relatively low-time pilot transitioning from a Cessna 172. Some carriers will see you as higher risk and quote higher premiums. But a broker with strong carrier relationships can present your training plan, recent simulator time, and experience in a way that makes your profile more appealing. This can mean the difference between paying $6,500 per year and $4,200 per year for the same coverage.
Market Cycles and Carrier Behavior
Aviation insurance carriers operate in a market cycle:
- Soft Market: More competition, lower premiums, broader coverage.
- Hard Market: Higher premiums, stricter underwriting, fewer options.
Carrier appetite shifts with the market. In hard markets, some carriers exit certain segments entirely, while others tighten requirements.
Evaluating a Carrier
When your broker brings you quotes, consider:
- Financial Strength: Aim for carriers with an A- rating or better.
- Claims Reputation: Ask your broker about past claim experiences with the carrier.
- Policy Wording: Cheaper isn’t always better if coverage is more restrictive.
- Stability: Choose carriers with a long history in aviation insurance.
Why Relationships Matter
In aviation insurance, the broker–carrier relationship is everything. A strong relationship can:
- Speed up quoting
- Help negotiate exceptions to underwriting requirements
- Improve claims response time
- Secure better renewal terms
BWI’s Advantage with Carriers
Because BWI has been in the aviation insurance business for decades and insures thousands of aircraft, carriers value our submissions. Our size, reputation, and professionalism give us leverage to negotiate better deals for our clients.
Final Thoughts
Choosing the right aviation insurance carrier isn’t about picking a name you’ve heard of, it’s about matching your aircraft, your pilot profile, and your mission to the carrier that best fits. And in aviation, that fit can mean thousands of dollars in savings and better protection when you need it most.
Want to make sure your aviation insurance is placed with the best carrier for your needs? Contact BWI Aviation Insurance today at 800-666-4359 or request a quote online.
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