Most aircraft owners are familiar with retail aviation insurance, buying a policy directly from a broker or agency. But behind the scenes, there’s another layer of the aviation insurance market that plays a critical role: wholesale aircraft insurance.
Wholesale brokers provide access to specialized markets, unique risk placements, and underwriting expertise that many retail agents don’t have. If you’re an aircraft owner, you may never deal directly with a wholesaler, but understanding how they operate helps you make smarter insurance decisions and ensures your coverage is built by the best experts available.
At BWI Aviation Insurance, we’ve worked with both retail and wholesale partners for more than 45 years. This guide explains what wholesale aircraft insurance is, how it differs from retail brokerage, and how it impacts the cost, quality, and service of your policy.
1. What Is Wholesale Aircraft Insurance?
Wholesale aircraft insurance refers to aviation policies placed through an intermediary (the wholesaler) who works between retail brokers and the underwriting companies.
In simple terms:
– Retail Broker (like BWI): Works directly with the aircraft owner or operator.
– Wholesale Broker: Works with the retail broker to access specialized underwriters or markets.
– Underwriter (Carrier): The insurance company that issues and manages the policy.
A wholesaler acts as a bridge between the retail broker and insurers that may not allow direct retail access, helping secure coverage for complex, high-value, or hard-to-place aviation risks.
2. How Wholesale Brokers Fit into the Aviation Market
The aviation insurance ecosystem includes:
- Retail Brokers/Agents – Serve the customer, gather details, and provide service.
- Wholesale Brokers – Provide market access, underwriting expertise, and placement support.
- Underwriters/Carriers – Assume the actual financial risk of insuring the aircraft.
Wholesale brokers are often used when:
– A retail broker lacks direct appointments with a certain carrier.
– The risk requires specialized expertise (e.g., experimental, helicopter, corporate jet, or international operations).
– A policy needs access to London Lloyd’s markets or international reinsurers.
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3. Examples of Wholesale Brokers in Aviation Insurance
- Falcon Insurance Agency (retail and wholesale in select markets).
- Aerospace Insurance Managers (AIM).
- Starr Aviation (specialty division).
- Aviation Specialty Insurance Services.
- Wings Insurance Wholesale.
4. Wholesale vs. Retail Aircraft Insurance
| Feature | Retail Aircraft Insurance (BWI) | Wholesale Aircraft Insurance | Who It Serves | Best For | Primary Value |
| Customer Contact | Direct relationship with insured | No direct contact with insured | Aircraft owners and pilots | Personal and business use | Personalized service and advocacy |
| Market Access | 8–12 domestic underwriters | Domestic + international markets | Retail brokers | Complex or unique risks | Market access and technical underwriting expertise |
| Pricing Impact | Competitive retail pricing | Adds small brokerage fee (5–10%) | Retail brokers | High-value or hard-to-place aircraft | Specialized underwriting resources |
5. When Wholesale Aircraft Insurance Is Used
- High-value turbine and jet aircraft.
- International operations (outside the U.S.).
- Unique risks (aerial photography, skydiving, wildfire suppression).
- Fleet and charter operators.
- Helicopters, drones, and experimental aircraft.
- Airports and FBOs requiring custom liability programs.
6. How It Affects Your Aircraft Insurance Cost
Using a wholesale broker can sometimes increase costs slightly (due to a small placement fee), but the benefits usually outweigh it.
Advantages:
- Access to specialized markets unavailable to retail agents.
- Faster placement for complex or urgent risks.
- Deeper underwriting and technical expertise.
- Access to international reinsurers and niche programs.
Disadvantages:
- Slightly higher total premium (5–10% wholesale commission).
- Indirect communication, you work through your retail broker.
- Longer processing times for complex programs.
7. Real-World Example: Retail vs. Wholesale Placement
Scenario: A corporate client operating a 2018 King Air 350i valued at $4.5M required international coverage for trips to Canada and Central America.
– Retail-only markets: Provided $4.5M hull with $1M CSL liability for $16,200 annually.
– Wholesale placement via Lloyd’s of London: Provided broader worldwide territory, increased liability ($2M CSL), and higher hull war-risk protection for $17,400 annually.
Result: For an additional $1,200, the client gained double the liability protection and worldwide flight coverage, an excellent tradeoff made possible through a wholesale partner.
8. Why Wholesale Relationships Strengthen Retail Brokers Like BWI
At BWI Aviation Insurance, we work directly with every major U.S. aviation underwriter and selectively with wholesale partners when the situation demands.
- Full domestic market access (AIG, Old Republic, Starr, USAIG, QBE, Core Specialty, etc.).
- Optional access to Lloyd’s and international markets.
- Specialized risk placement for hard-to-insure aircraft or operators.
- Ongoing claims advocacy through one retail contact.
9. How to Ensure You’re Getting True Market Access
- Which carriers were approached for this quote?
- Was a wholesale broker involved in the placement?
- How many markets were actually shopped?
- Does the quote include international coverage or war-risk options?
- Are there additional placement fees from the wholesale intermediary?
10. Why Thousands of Aircraft Owners Choose BWI
- 45+ years specializing exclusively in aviation insurance.
- 10,000+ active policies nationwide.
- 800+ five-star reviews.
- Access to both retail and wholesale aviation markets.
- 24-hour quoting for piston aircraft.
- Dedicated account managers with deep aviation expertise.
11. The Bottom Line
Wholesale aircraft insurance plays a vital role in connecting aircraft owners to the world’s best underwriters and specialized risk programs.
While most pilots and aircraft owners will never interact directly with a wholesaler, the strength of your broker’s wholesale relationships can make the difference between limited coverage and world-class protection.
At BWI Aviation Insurance, we leverage both domestic and international markets to ensure our clients always receive the best rates, best coverage, and best service in aviation insurance.
Get your aircraft insurance quote today at www.bwifly.com.
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