More insurance hikes on the way I'm sure...

[jetdriven]

Here s his email. The quoting Carrier is not writing policies now. This is 90k hull wirh 100k/seat.   PPL 300hr no IfR. 
 

As I mentioned in my email earlier today. XL is no longer writing P & B aircraft as of 3/5/20. So those terms are no longer available.

 

Here are alternate carrier responses that I approached.

AIG -Pass

Global- $3,388

ORA-Pass

Starr Aviation-$3,381

Us Specialty -Pass

QBE-Pass-Prior Carrier for your M20C-now require an instrument rating.

Aerospace Ins Mgrs.- $3,785

 

[Parker_Woodruff]

13 minutes ago, jetdriven said:

I will ask him. Also, I’ve seen this before, with the stock market takes a dive, insurance companies invest premiums in the stock market, then they charge more for stock market losses like they did back in 2007 and 2001.State Farm and Allstate for property casualty, they actually said because of stock market losses they are raising premiums

Yes - I know State Farm normally pays more in claims than they take in premium.

[DonMuncy]

15 minutes ago, Parker_Woodruff said:

Yes - I know State Farm normally pays more in claims than they take in premium.

That is fairly normal. If they require a 5% profit, and they are making 7% on the invested capital, they can afford to pay out 102% of their premium income on claims. Back when (a long time ago) they were making 15% on investments, they could pay quite well. Of late, it is tougher to do. 

[PT20J]

45 minutes ago, jetdriven said:

Here s his email. The quoting Carrier is not writing policies now. This is 90k hull wirh 100k/seat.   PPL 300hr no IfR. 
 

As I mentioned in my email earlier today. XL is no longer writing P & B aircraft as of 3/5/20. So those terms are no longer available.

 

Here are alternate carrier responses that I approached.

AIG -Pass

Global- $3,388

ORA-Pass

Starr Aviation-$3,381

Us Specialty -Pass

QBE-Pass-Prior Carrier for your M20C-now require an instrument rating.

Aerospace Ins Mgrs.- $3,785

 

Pretty interesting how close the three quotes are for the carriers that would quote the risk.

[PT20J]

The way insurance companies make money is on what Warren Buffett calls “float.”  It’s the timing difference between when premiums are collected and claims are paid. The companies get to invest money that isn’t theirs to keep (it will have to be paid out in claims at some future date). But, they get to keep the investment income. When investment returns are low and losses are high, premiums will rise. It’s basic business economics. Competition ensures that the converse is also true. 

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[Scott Dennstaedt, PhD]

6 hours ago, Hyett6420 said:

@Scott Dennstaedt thank you so much for all the info on tornadoes, hail,etc.  Fascinating.  I love learning stuff like this.

You are very welcome!