Page 18 - January 2022

“Capitalism is attracted to cash flow, and there is a lot of it in aviation. In some cases, it simply comes down to luck of the underwriter.’’
their fiscal year. It is hard to argue the basic economic principle of “supply and demand” and the impact it has on your insurance premiums.
As 2021 concluded, we saw record demands for insurance coverage. As hull values and hours flown increased paired with a tight supply of aviation insurance companies offering coverage, we saw rates continue to increase as the demand for coverage exceeded the market supply. Compounding the limited supply was the buyers’ demand to have every carrier quote their renewal in hopes of reduced rates. Aviation underwriting in the turbine market is manually processed. One underwriter can only handle so many submissions each day, in addition to servicing their current
Capitalism is attracted to cash flow, and there is a lot of it in aviation. In some cases, it simply comes down to luck of the underwriter. Every carrier is one major loss away from either making money or losing it during
client needs such as issuing certificates, reviewing hangar leases, etc. To alleviate their workload, they mustdeclinenewsubmissions,increaseratesonexisting ›
16 • KING AIR MAGAZINE
JANUARY 2022
9 17 30
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DEANBENEDICTA&P,AI,CONSULTAN T TEL:702-773-1800DR.DEAN@BEECHMEDIC.COM
  
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