Insurance creep

[DXB]

Another unfortunate downgrade with Global this year is that the policy no longer includes Savvy Breakdown Assistance (normally $149/yr ).  That service saved my butt one time previously.

[RobertGary1]

17 minutes ago, DXB said:

Another unfortunate downgrade with Global this year is that the policy no longer includes Savvy Breakdown Assistance (normally $149/yr ).  That service saved my butt one time previously.

They had that on my policy but I never signed up for it. It wasn’t clear what they actually did other than just refer a mechanic which you could probably get from locals. 
 

-Robert 

[RLCarter]

3 hours ago, DXB said:

Another unfortunate downgrade with Global this year is that the policy no longer includes Savvy Breakdown Assistance (normally $149/yr ).  That service saved my butt one time previously.

Mine went up enough it should have included an annual 

[MikeOH]

8 hours ago, Parker_Woodruff said:

That and light aircraft insurance has been a loss leader for quite some time.

@Parker_WoodruffSorry, it makes NO sense to me why "for quite some time" any business, let alone all of them, in a given industry would do that!  It makes far more sense that all of us are collectively paying for a HUGE loss that the industry didn't see coming and was, therefore, vastly underfunded to handle.

Edited November 11, 2020 by MikeOH

[0TreeLemur]

On 11/5/2020 at 9:49 PM, MikeOH said:

Global as well. $70K Hull/$1mil/$100K

2018.   $1059

2019.   $1197

2020.  $1528

ditto

[Parker_Woodruff]

12 hours ago, MikeOH said:

@Parker_WoodruffSorry, it makes NO sense to me why "for quite some time" any business, let alone all of them, in a given industry would do that!  It makes far more sense that all of us are collectively paying for a HUGE loss that the industry didn't see coming and was, therefore, vastly underfunded to handle.

Doesn’t make sense to me either, but I’ve seen the loss ratios. I imagine it’s a reason less diversified companies like Avemco kept their rates up all these years. They don’t have pro flown Learjets and Gulfstreams to subsidize the light piston aircraft book 

[Missile=Awesome]

12 hours ago, MikeOH said:

@Parker_WoodruffSorry, it makes NO sense to me why "for quite some time" any business, let alone all of them, in a given industry would do that!  It makes far more sense that all of us are collectively paying for a HUGE loss that the industry didn't see coming and was, therefore, vastly underfunded to handle.

Is the axe sharp yet?  No?  Keep grinding...

[Missile=Awesome]

55 minutes ago, Parker_Woodruff said:

Doesn’t make sense to me either, but I’ve seen the loss ratios. I imagine it’s a reason less diversified companies like Avemco kept their rates up all these years. They don’t have pro flown Learjets and Gulfstreams to subsidize the light piston aircraft book 

Just talk to Dale E Jr. about those pros...

But seriously, I get a duty desk report daily from my carrier that reviews fatality incidents and those with personal injury for GA.  It is a rare day that there are not multiple incidents...Very sobering.  This doesn’t include property damage claims such as gear ups and drunk drivers plowing into hangers etc...

 

[Missile=Awesome]

12 hours ago, MikeOH said:

@Parker_WoodruffSorry, it makes NO sense to me why "for quite some time" any business, let alone all of them, in a given industry would do that!  It makes far more sense that all of us are collectively paying for a HUGE loss that the industry didn't see coming and was, therefore, vastly underfunded to handle.

Parker already explained that insurance for aviation is purchased by syndicates.  They purchase re-insurance to protect themselves for large losses.  Reinsurance market is expensive right now with prices increasing to cover catastrophic pay outs and remain solvent.

I have no doubt this has “trickled down” into GA.  You can gripe and not like it (I agree) all damn day, but you are not going to change the outcome.

There are other current events that say “shut up and take it” going on right now.

I am enjoying the irony from experiences lived over last four years...

So, in summary: This buttercup is sucking it up.

[Missile=Awesome]

In America cheaters prosper...

Those with the most money usually win...

and they own airplanes...

[Parker_Woodruff]

12 minutes ago, Missile=Awesome said:

But seriously, I get a duty desk report daily 

 

That's a good email - I need to re-subscribe with my current email address.

[Missile=Awesome]

Hell, I am still not over the AIG bailout in 2008, but I am insured with them.  I wonder if Boeing will be the next deemed to be “to big to fail” and we the people will bail them out as the airline industry continues to directly suffer from the prolonged Covid 19 impact.

We shall see.

[Missile=Awesome]

Insurance, like the world is complicated.

Buckle up.

It’s gonna be a wild ride people...

As Jerry G said...”What a lonnnnnnng strange trip it’s been”...

[Missile=Awesome]

Better to be along for the ride...than eject....EJECT....EJECT!!!!

[Parker_Woodruff]

14 minutes ago, Missile=Awesome said:

Hell, I am still not over the AIG bailout in 2008, but I am insured with them.  I wonder if Boeing will be the next deemed to be “to big to fail” and we the people will bail them out as the airline industry continues to directly suffer from the prolonged Covid 19 impact.

We shall see.

You're not insured with them if it's the same carrier that runs the Duty Desk. USAIG (runs the Duty Desk report) is different than AIG.

[Missile=Awesome]

Just now, Parker_Woodruff said:

You're not insured with them. USAIG (runs the Duty Desk report) is different than AIG.

Thanks for that Parker.  The old assume (making an ass out of u and me) applies to me here.   

Clears my ever so cloudy conscience a bit...

[Parker_Woodruff]

1 minute ago, Missile=Awesome said:

Thanks for that Parker.  The old assume (making an ass out of u and me) applies to me here.   

Clears my ever so cloudy conscience a bit...

USAIG is a great company with excellent policy and great claims service.

[Missile=Awesome]

6 minutes ago, Parker_Woodruff said:

USAIG is a great company with excellent policy and great claims service.

Looks like they are ultimately aligned with Gen Re and Berkshire Hathaway.  I need to get a little more research before spouting off.  Thanks Parker.  Yes, USAIG has been “at it” a long time and their paper is all at least “A” rated.  I hope to just write checks and NOT ever test their claims response.  

Scott

[carusoam]

10 hours ago, philip_g said:

I've been shopping for a purchase and having trouble finding decent coverage, it's been suggested to try to get hull insurance and an umbrella policy without an aviation exclusion, but I can't find that either.

Have you met @Parker_Woodruff?

Best regards,

-a-

[RobertGary1]

12 hours ago, philip_g said:

I've been shopping for a purchase and having trouble finding decent coverage, it's been suggested to try to get hull insurance and an umbrella policy without an aviation exclusion, but I can't find that either.

Not sure that will ever work on multiple counts. Never heard of not being able to get insurance unless you have an extensive loss history. You may find your rate is very high until you get more time in the plane. 
 

-Robert 

[Mike A]

Received this beauty tonight:

Global  Aircraft Insurance Renewal Premium Increase: 10XXXXXX

The above referenced insurance policy 1XXXXX through Global Aerospace will expire at 12:01 A.M. on February 15, 2021.

Global Aerospace would like to inform you of the following:
The conditions in the aviation insurance market continue to evolve as the industry works to quantify the impact of the claims being presented. As a result, the above-reference policy may be subject to a premium increase with respect to the upcoming renewal.

 

I guess it’s nice they gave me 3 months notice. 

[Immelman]

I dont know if I posted what I decided this year...

Renewed with the higher premium at Global. Avemco was not much higher over.

Decided, any further increase next year and I will go to Avemco. After a year with no claims, their premium drops.

 

[RobertGary1]

1 hour ago, Immelman said:

I dont know if I posted what I decided this year...

Renewed with the higher premium at Global. Avemco was not much higher over.

Decided, any further increase next year and I will go to Avemco. After a year with no claims, their premium drops.

 

Be good to discuss it with your broker too to see if it’s apples to oranges. Avemco used to have strange policy limits like reduced benefits if passengers were related. Not sure if that is still the case. 
 

-Robert 

[Vance Harral]

On 11/11/2020 at 11:46 AM, philip_g said:

and an umbrella policy without an aviation exclusion

If you find one, let us know.  That would be the holy grail.

[carusoam]

So I had a brief discussion with a Mooney pilot in Japan the other day...

If you think finding a Mooney in HI is tough... add a few thousand nms to the plan...

He posted a great video of a landing on YouTube.... 

Best regards,

-a-