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clients or both. This overload also puts time constraints on the buyer, as they may not see their renewal proposals until just before their current policy expiration date. In December 2021, www.NBAA.org published an article, “Experts Offer Aviation Insurance Best Practices,” which included some good pointers about how to get the most attention from underwriters and make them want to insure your aircraft. Joe Williams was quoted saying, “... underwriters can recognize patterns of professionalism from seemingly small variables, such as the neatness and completeness of your application or renewal and pilot history forms.” The current market is tough, and this is an easy step to increase your appeal to the underwriters.
As I mentioned earlier, there is hope for 2022. History has shown that the general aviation market traditionally follows the airline insurance market. Airline renewals are a good indicator of what is coming to the GA industry. As 2021 closed, the airline sector had more capacity for their renewals moving into 2022 than in previous years. It is reasonable to hope your upcoming policy will bring a flat renewal, which is an improvement from significant increases of previous years. Adding to the supply is a new carrier, Applied Underwriters Aviation. This group is comprised of aviation underwriting veterans who left a leading aviation carrier to compete specifically in the turbine market. Their former employer is fighting back by recruiting some top talent from other carriers to hold
their market share. This competition could yield the King Air community some much desired relief. Applied Aviation Underwriters informed me they intend to insure King Airs, as well as other turbine aircraft.
Typically, soft markets last longer than hard markets, and the indications in the aviation industry are that the hard market may be coming to an end. Applied Aviation Underwriters has already put business on their books and will continue to expand their offerings in the market. Depending on the state you are located, you may start seeing Applied Aviation Underwriters’ quotes from your broker as early as March or April. Hopefully by the fourth quarter of 2022, you may start seeing the decreases. In the meantime, watch for the wild card that could derail this prediction, or cause it to be short-lived: The increasing cost to adjust claims, combined with the appreciation of used aircraft and the record number of business aircraft utilization.
If general aviation remains strong through increases in number of aircraft movements and increased hull values, two things will occur. There will be more claims and the costs to fix aircraft will be higher. Adding fuel to that flame would be the economic cycle of not enough people to repair the airplanes and parts availability. That’s a concern worth noting, which would read as an inflationary hard market for objective reasons and not just a carrier supply and market demand relationship. Turns out, it’s not just a pilot shortage, but a shortage of aviation professionals in all areas of our aviation ecosystem that is adding cost to our passion for flying. KA
Kyle P. White is an aviation insurance specialist for a global insurance brokerage company. He has professionally flown King Air 90s and B200s and holds an ATP and multi-engine instrument instructor license. You can reach Kyle at kpwhite816@gmail.com
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JANUARY 2022