What Goes Down Must Go UpWhat Goes Down Must Go Up

Insurance Carriers are adjusting their premiums

For the past several years, aircraft owners buying insurance have benefitted from a steady drop in what they paid for insurance. It’s been nearly 15 years of lowering premiums, primarily because there was a surplus of capacity in that insurance companies and their reinsurers needed a place to invest their resources. 

Unfortunately, those days now appear to be over. In the fourth quarter of 2017, believe it or not, it’s almost as if a switch was thrown and premiums started to rise.


At the AOPA Insurance Agency, we are starting to see premium increase on many different makes and models of aircraft. Models such as tailwheels to higher horsepower airplanes, and retractable gear aircraft were the first to see increases. Now carriers are communicating that other increases are likely to occur in the near future. Some increases are marginal while others may be substantial. The reason? Well, it comes with a brief background on insurance. Every insurance carrier, across all lines (home, auto, life, and aircraft) use reinsurers and those reinsures have sustained some fairly sizable losses in the last several years. It could be the two major hurricanes that caused extensive damage or any combination of natural disasters that have causes losses - losses not only to aircraft but to homes, cars, buildings and everything else that is insured.


Here is one aviation statistic: We’ve been told by numerous carriers that in the non-commercial aircraft insurance market, for the last few years, most companies have paid out $1.06 for every dollar of premium received. That alone causes a difficult financial model.


So, what can an aircraft owner do? Now, more than ever, you need to use an insurance broker to find the best deal that’s currently available in the marketplace. Brokers have access to markets and coverages that you can’t get to on your own. Further, at AOPA, we shop the market on your behalf, finding the coverage you need to fit your budget.


We recommend that you call your broker early – within three months of your insurance renewal so you can lock in your rate!


AOPA Insurance Agency offers knowledgeable agents who can talk your language and understand your unique flying and insurance requirements. Visit for more information. 


Jim Pinegar

Jim Pinegar

Vice President & Director of Operations of AOPA Insurance Services

Related Articles