We’ve heard our share of horror stories from readers regarding their experiences in the “hard” insurance market that developed in the last two years. We’ve been tracking the market and reported on it in the February and December 2019 issues. It put an end to a “soft” market that had existed for over 30 years. Aircraft owners luxuriated in an aviation insurance market where there was excess capacity—there were so many insurance companies writing aviation coverage that the competition drove premium prices through the floor. Keep in mind that there are fewer than 15 insurance companies that write aviation insurance, and only about 200,000 airplanes in the U.S.—it’s a tiny market.
In addition, the cost of repairs has skyrocketed, especially on composite aircraft, and there are more owner-flown multimillion-dollar turboprops and jets, something that gives insurers the willies.