Page 14 - November 2022
P. 14
Proactive Planning
As the Aviation Insurance Market Evolves, So Should Your Strategy
by Kyle White
As Florida grapples with the devastation of Hurricane Ian, its impact on the insurance industry is already making the headlines. Estimates of “insurable losses” are between $25-$40 billion. While this is a big range, even the lowest of estimates is a meaningful, industry changing number. You will hear of possible litigation between the insurance companies and the policy holders to determine the cause of the occurrence. Was the damage caused by wind or flood? The results will determine which insurance carriers can afford to stay solvent, and those that will pull out of the Florida market altogether. This is not a new issue for the state. The Florida Insurance Guaranty Association (FIGA) was created in 1970 to help protect consumers. FIGA is funded through taxes on insurance policies, which now include aircraft policies. If an insurance carrier becomes insolvent and a court orders them to be liquidated, their outstanding claims are processed through the FIGA.
12 • KING AIR MAGAZINE
NOVEMBER 2022
