What to Expect in the Aviation Insurance Market for 2024

The aviation insurance industry remains in a “hard” market characterized by rising insurance premiums, restrictive underwriting, limits management, and removal or reduction of coverage at renewal.

However, after four years of rising insurance premiums, it appears the market is starting to level off. Most insurers are offering renewal terms at single-digit increases or even as expiring in a few cases. The best risks continue to benefit the most. A best risk can be defined as a risk with a newer model aircraft, well-qualified pilot(s) under age 65, annual simulator training in the exact make and model being insured for all pilots, engagement in safety initiatives, loss-free history, etc.

Underwriting discipline for pilots remains tight among insurers with continued attention to pilot age, required completion of annual simulator-based recurrent training for each pilot in the make and model aircraft insured, even the pilot’s experience flying aircraft equipped with certain avionics packages (e.g., Collins Pro Line Fusion, Garmin 1000/3000). Owner/flown pilots vs professional pilots is heavily scrutinized. A professional pilot can be defined as any person(s) who has their main source of income derived from their responsibilities acting as a required flight crew member of an aircraft.

Three new insurers have launched in the last 18 months, and hopefully, with this increased capacity, there will be increased competitive pressure. These particular markets are starting off writing smaller risks with lower coverage limits but may increase their appetite as they get their feet wet.

Your AssuredPartners Aerospace broker negotiates renewal insurance offerings every day and has their pulse on which markets/underwriters will be most competitive on your account. Please reach out with any questions you might have. We stand as your trusted insurance advisor.