We’re not crazy about the fact that something we predicted in these pages over the last two years has come to pass. The reality—significantly higher insurance rates—is hitting pilots right in the wallet. The new, “hard” insurance market is especially challenging for those owners who bought an older jet for a bargain-basement price and thought they got a great deal.
We watched—and enjoyed—the soft aviation insurance market for more than 10 years. There were so many companies offering aviation insurance that none of them was making money and several were dealing with red ink year after year as they cut prices to compete for business. We didn’t think the situation was sustainable and predicted back in 2018 that premiums would increase significantly.