Parker_Woodruff Posted September 10, 2021 Report Share Posted September 10, 2021 Here is the Milliman Report for United States general aviation insurance in 2020. According to the report, there is $2.1B of insurance attributable to GA in the USA with admitted carriers (non-Lloyds & Surplus Lines types of premium). Underwriting losses industry-wide were $52MM last year which was a significant improvement from $285MM the year before. The Nashville Tornado accounted for $100MM in losses in 2020. PDF Report from Milliman https://us.milliman.com/en/insight/united-states-general-aviation-admitted-market-summary-of-2020-statutory# 3 Quote Link to comment Share on other sites More sharing options...
flyboy0681 Posted September 10, 2021 Report Share Posted September 10, 2021 I just received our renewal today and the policy went up by $88 over last years. It's still not cheap at $2,900, but I was expecting at least a 10-20% increase based on the stories I've been reading. Quote Link to comment Share on other sites More sharing options...
carusoam Posted September 10, 2021 Report Share Posted September 10, 2021 Great insight shared! Thanks Parker! Best regards, -a- Quote Link to comment Share on other sites More sharing options...
MB65E Posted September 11, 2021 Report Share Posted September 11, 2021 Parker can I give you a pilot form this year? Currently with Global through Falcon and wanted you to take a swing at it. I don’t want to fowl the process up so please advise. Global sent their automated rate increase email but won’t tell you how much until the new form is is run. 39yo, Hangared, 40k Hull, Interested in more liability than hull, ATP 2500. Dec 3 renewal date. thanks!! -Matt Quote Link to comment Share on other sites More sharing options...
Parker_Woodruff Posted September 12, 2021 Author Report Share Posted September 12, 2021 On 9/11/2021 at 12:19 AM, MB65E said: Parker can I give you a pilot form this year? Currently with Global through Falcon and wanted you to take a swing at it. I don’t want to fowl the process up so please advise. Global sent their automated rate increase email but won’t tell you how much until the new form is is run. 39yo, Hangared, 40k Hull, Interested in more liability than hull, ATP 2500. Dec 3 renewal date. thanks!! -Matt I'll send you a message Quote Link to comment Share on other sites More sharing options...
jetdriven Posted September 13, 2021 Report Share Posted September 13, 2021 On 9/10/2021 at 4:25 PM, Parker_Woodruff said: Here is the Milliman Report for United States general aviation insurance in 2020. According to the report, there is $2.1B of insurance attributable to GA in the USA with admitted carriers (non-Lloyds & Surplus Lines types of premium). Underwriting losses industry-wide were $52MM last year which was a significant improvement from $285MM the year before. The Nashville Tornado accounted for $100MM in losses in 2020. PDF Report from Milliman https://us.milliman.com/en/insight/united-states-general-aviation-admitted-market-summary-of-2020-statutory# So it appears that but for the Nashville tornado, they would’ve made $50 million in profits last year Quote Link to comment Share on other sites More sharing options...
0TreeLemur Posted September 13, 2021 Report Share Posted September 13, 2021 Question for Parker- does the $148M verdict for the collapse of a shelter at O'Hare that injured a dancer get charged as an aviation incident? Are liability policies for large public airports in the same pool of insureds as our Mooney's? Seems odd to me if so. Quote Link to comment Share on other sites More sharing options...
steingar Posted September 13, 2021 Report Share Posted September 13, 2021 Ouch. Sounds like we're likely to get chased out by insurance carriers before we get chased out by parts or 100ll availability, or lack thereof. Folks have been insuring GA for decades, why all the big losses now? Sounds unsustainable. No way you can recover a quarter billion dollars from the likes of us. 2 Quote Link to comment Share on other sites More sharing options...
Parker_Woodruff Posted September 13, 2021 Author Report Share Posted September 13, 2021 17 hours ago, 0TreeLemur said: Question for Parker- does the $148M verdict for the collapse of a shelter at O'Hare that injured a dancer get charged as an aviation incident? Are liability policies for large public airports in the same pool of insureds as our Mooney's? Seems odd to me if so. I'm not sure where that one would be booked, but it probably doesn't have the same quota-share setup as the airlines do, for sure. 1 Quote Link to comment Share on other sites More sharing options...
Parker_Woodruff Posted September 13, 2021 Author Report Share Posted September 13, 2021 9 hours ago, steingar said: Ouch. Sounds like we're likely to get chased out by insurance carriers before we get chased out by parts or 100ll availability, or lack thereof. Folks have been insuring GA for decades, why all the big losses now? Sounds unsustainable. No way you can recover a quarter billion dollars from the likes of us. Look at flight school rates, for example. The boom in training led to probably 10-50% more hours flown per plane, depending on the fleet. Students have accidents at the same rate per hour. Accordingly, I'm seeing big increases & tight underwriting in flight schools. So that type of activity will make up a big chunk of the premium. 1 Quote Link to comment Share on other sites More sharing options...
steingar Posted September 14, 2021 Report Share Posted September 14, 2021 @Parker_Woodruff You are way smarter about this stuff than me, and I'm glad you post on this board. I still don't get why the quarter billion dollar losses now. Flight schools have been in operation with the same business model forever. There really isn't much new under the sun except perhaps in flight weather than can increase safety. Like I said, I don't think they're going to recover two hundred and fifty million AMUs from the likes of us. Quote Link to comment Share on other sites More sharing options...
RobertGary1 Posted September 14, 2021 Report Share Posted September 14, 2021 As bad as it is, it’s 3 times worse for helicopters. They say the Kobe accident affected it but that doesn’t seem statistically sounds. Quote Link to comment Share on other sites More sharing options...
Parker_Woodruff Posted September 14, 2021 Author Report Share Posted September 14, 2021 42 minutes ago, steingar said: @Parker_Woodruff You are way smarter about this stuff than me, and I'm glad you post on this board. I still don't get why the quarter billion dollar losses now. Flight schools have been in operation with the same business model forever. There really isn't much new under the sun except perhaps in flight weather than can increase safety. Like I said, I don't think they're going to recover two hundred and fifty million AMUs from the likes of us. It doesn’t have to be solved by premium alone. It can also be solved with making high liability limits less available. for awhile any flight department could get $100MM to $300MM in liability coverage. Now it costs so much that many are trimming to say $50MM. Owner-flown turbine operators could get $10MM no problem. Now that’s being trimmed. The days of carriers fighting for business by saying “I’ll give $150MM in liability coverage for the same price as they’re paying for $100MM with our competitor” are done. 1 Quote Link to comment Share on other sites More sharing options...
PT20J Posted September 14, 2021 Report Share Posted September 14, 2021 It also gets solved over time by investing. The engine driving Berkshire Hathaway is exploiting the timing difference between when premiums are collected and when claims are paid and investing the money that (temporarily) resides with the insurance company. Skip 1 Quote Link to comment Share on other sites More sharing options...
RobertGary1 Posted September 14, 2021 Report Share Posted September 14, 2021 5 minutes ago, PT20J said: It also gets solved over time by investing. The engine driving Berkshire Hathaway is exploiting the timing difference between when premiums are collected and when claims are paid and investing the money that (temporarily) resides with the insurance company. Skip Not sure I see your point. Yes, that is what I would expect any financially prudent company to do. Not sit on cash. But I don't see how it affects loss rates. Quote Link to comment Share on other sites More sharing options...
PT20J Posted September 14, 2021 Report Share Posted September 14, 2021 2 hours ago, RobertGary1 said: Not sure I see your point. Yes, that is what I would expect any financially prudent company to do. Not sit on cash. But I don't see how it affects loss rates. Improves profit side. Little companies can do to affect loss side other than not taking on certain risks. Quote Link to comment Share on other sites More sharing options...
Browncbr1 Posted September 19, 2021 Report Share Posted September 19, 2021 I just received a notice of non-renewal from QBE. I had paid them $1615 for $85k Hull through December 15. I guess they are getting out all together instead of trying to raise rates. Quote Link to comment Share on other sites More sharing options...
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