Anything new with Aircraft Insurance lately?
We’d like to report light to moderate turbulence for the aircraft insurance market outlook in May 2023. The general consensus is rates are supposed to continue increasing but we’ve actually seen the market flat and stabilize at the current rates. A lot of people talk about Boeing and Ukraine for increases in insurance rates, but the biggest risk is the loss ratios from individuals that have had significant physical damage losses.
Quick stat: Aviation insurance makes up less than 1% of the Property Casualty insurance market.
Advice: The best way forward it to maintain a close relationship with your aviation insurance broker and underwriters
|Make||Model||Type of Pilot||Hull Value||Premium|
|Citation||Mustang||Owner Pilot Transitioning from Cirrus SR22T with 850 Total Time; required 25 hours dual with mentor pilot in Mustang prior solo||$1,900,000||$33,000|
|Embraer||Phenom 100||Pro Pilots; In-Aircraft Initial with Norton Aviation||$2,900,000||$28,000|
|Citation||Encore+||Owner Pilot 74 Years Old||$3,000,000||$30,000|
|Pilatus||PC-24||Pro Dual Pilots||$12,300,000||$48,000|
|Piper||M600||Owner Pilot Experienced||$2,250,000||$25,000|
|Cirrus||Vision Jet||Owner Pilot w/ 500TT transition from SR22||$3,000,000||$61,000|
|Cessna||T182||Owner Pilot Experienced||$857,000||12,000|
|Daher||TBM 930||Owner Pilot 71 Years Old||$3,300,000||$35,000|
|Citation||Sovereign+||Pro Pilot Experienced, A Lot of Claims||$9,500,000||$55,000|
|Bell||505||Pro and Owner Pilot with 40 hours Rotor Wing and 600 Fixed Wing||$1,700,000||$75,000|
|Bell||429||Pro Pilots Experienced||$8,000,000||$125,000|
|Bell||206||Owner Pilot; 550 hours Total Time||$350,000||$17,000|
|MD||500||Owner Pilot; 500 hours Total Time||$1,000,000||$32,000|
CAE Simuflite has recently started requiring a Certificate of Insurance with a Waiver of Subrogation for simulator trainees with liability limits of $50,000,000 for Commercial Operators and $20,000,000 for Personal Operators. There’s been a lot of discussion about this on PhenomPilots.org and how these limits are unattainable leaving trainees responsible to negotiate lower limits per their policy.
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
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.