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Aircraft Insurance Outlook – June – July 2025
Posted By Benjamin Peterson
Are aviation insurance companies making money in 2025?
- Insurance companies largely keep their premiums in fixed income assets like treasury bonds which are now returning ~4.5% YOY. Two years ago the treasury was closer to 2%.
- If this trend continues we can expect aviation insurance companies to further compete to hold more premiums in reserve. Competition drives the premium of your aircraft insurance down!
- This is why we have four new insurance companies that have popped up in the past two years who are all looking for “market share”, or “premium in reserves.”
- As a result, PREMIUMS ARE DOWN it has become easier to insure “TRANSITION PILOTS” and 70+ YEAR OLD PILOTS.
- When an insurance company can hedge their risk with higher interest rates, maybe insuring that 75 year old pilot, or Private Pilot working on an Instrument Rating who’s transitioning into a Diamond DA62, is a little less risky.
- Insurance companies LOVE high US10Y = 4.5%
- Pilot warranties will get easier
- If you’re trying to buy a house, yeah I know it sucks!
As you can see below from the aircraft we’ve quoted in the past month, there’s some pretty large decreases in premium. Yes, these percentage moves are accurate!
| Make | Model | Type of Pilot | Hull Value | Premium | % Move |
|---|---|---|---|---|---|
| Daher | TBM 960 | Owner with 1,200 Total Time; $650K claim in 2024; moved insurance companies | $4,300,000 | $32,000 | 🔻68% |
| Diamond | DA62 | Owner Pilots Very Experienced | $1,600,000 | $18,000 | 🔻36% |
| Phenom | 300E | Owner Pilot; Third Year Owner | $9,000,000 | $65,000 | 🔻30% |
| 🚁Bell | 505 | Owner Pilot with 200 total time; second year | $2,300,000 | $59,000 | 🔻28% |
| Diamond | DA62 | Owner with 900 Total Time; Second Year | $1,450,000 | $18,600 | 🔻9% |
| Pilatus | PC-12 | Owner Pilot; 75 Years Old | $2,700,000 | $43,000 | FLAT |
| Citation | XLS+ | Father Son; Son only has 650 Total Time; Major Claim in Past | $11,000,000 | $49,000 | FLAT |
| Learjet | 45XR | Two Pro Pilots | $3,000,000 | $26,000 | FLAT |
| Diamond | DA62 | Sport Pilot working on Private | $1,700,000 | $66,000 | NEW |
| Pilatus | PC-12NGX | Pro Pilot; 69 Years Old | $6,200,000 | $64,000 | NEW |
| Cirrus | SR22 | Fractional with 2 owners low time | $530,000 | $6,000 | NEW |
| Cirrus | SR22 | Private Pilot working on Instrument | $575,000 | $11,000 | NEW |
| Beechcraft | Baron G58 | Owner new to Multi Piston | $800,000 | $11,000 | NEW |
| Lancair | Evolution | Very Experienced; New to Evo | $1,000,000 | $34,000 | NEW |
| Piper | M350 | Experienced Owner Pilot; 71 Years Old; Hasn’t flown in 10 years | $910,000 | $22,000 | NEW |
Advice: The best way forward is to maintain a close relationship with your aviation insurance broker and underwriters so you get the best rates as things are changing.
Ben Peterson is a 15 year aviation insurance services professional, Commercial Pilot and Flight Instructor with over 1,000 hours instruction given, and former Cirrus Factory Instructor Pilot.
Benjamin Peterson
Graduated from the University of North Dakota with a degree in Commercial Aviation as a Pilot and Flight Instructor. My first professional job was working for Cirrus Aircraft as an instructor.