Navigating Today’s Hard Aviation Insurance Market
Unlike commercial property & casualty markets that have numerous insurers, the aviation insurance market is highly specialized with far less insurers. Depending on the nature of a risk and the limits needed, multiple insurers may be required to insure 100 percent of a placement, or there may only be one carrier willing to offer coverage. How the market is approached with the placement has a significant impact on the options available.
It is critical to work with experienced aviation professionals to create and implement a strategic marketing plan. Some key steps include:
- Evaluate Current Program: identifying what exposures have been addressed and what exposures may not have been identified and still need to be addressed.
- Determine risk appetite and identify any emerging risks.
- Outline and prioritize short and long-term goals.
- Discuss and evaluate risks and how they effect profitability and efficiency and how you can gain control.
- Have a detailed submission and plan for entering the market. Don’t simply request quotes from random markets. This takes the power and control out of the buyer’s hands.
- Be decisive. Going back and forth to the underwriter with numerous “what if” scenarios creates doubt in their mind about the quality of the operation.
Once goals have been set, all necessary information gathered and the specifications created, it is time to approach the market.
Selecting appropriate carriers and determining how those carriers are approached can impact a client’s program now and well into the future. The final step is to review, weigh and then select the best options for your business.
This is the hardest aviation insurance market cycle we have experienced in over 25 years. JCL Aviation Services and Oswald are here to keep you and your team apprised of this ever-changing market. We’ll partner with you to navigate this unique industry and drive optimal results for your aviation insurance needs.
Risk Advisor, Property & Casualty
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