Aircraft and Liability Insurance

[ave8rr]

I received the following from my Insurance Broker a few days ago:

 

The aviation insurance landscape in Australia has changed in recent months, this includes major insurer, Allianz, withdrawing from the Australian aviation market from January 1st this year and AIG announcing in May that they are withdrawing from our aviation market effective immediately. The other major insurer, Swiss Re are showing a reluctance to insure lower valued GA aircraft. Over the past 5 years GA premiums in Australia have reduced and are the lowest we have experienced in the past 25 years. Insurers are telling us that this has put them in a loss making position and premiums at these levels are unsustainable and a major factor in Allianz’s and AIG’s decision to leave our market. The Australian Aviation Insurance market has reduced from four major insurers to two in the past five months and a swing to increase the premium pool is inevitable.

 

The above was written by my Broker and included with my Insurance renewal for our RV9A.

 

Premiums have indeed reduced over the previous few years however, are now on the way up again. We were lucky in that the premium has only increased by $67.00 for the next twelve months. I note that Allianz have withdrawn from the Aus market. I believe RAAus have some Insurance with Allianz along with QBE? WILL it be too much longer before we are told by RAAus that they are to drop the Insurance cover for members due cost or availability???

 

Mike

 

 

[Kununurra]

I received the following from my Insurance Broker a few days ago:The aviation insurance landscape in Australia has changed in recent months, this includes major insurer, Allianz, withdrawing from the Australian aviation market from January 1st this year and AIG announcing in May that they are withdrawing from our aviation market effective immediately. The other major insurer, Swiss Re are showing a reluctance to insure lower valued GA aircraft. Over the past 5 years GA premiums in Australia have reduced and are the lowest we have experienced in the past 25 years. Insurers are telling us that this has put them in a loss making position and premiums at these levels are unsustainable and a major factor in Allianz’s and AIG’s decision to leave our market. The Australian Aviation Insurance market has reduced from four major insurers to two in the past five months and a swing to increase the premium pool is inevitable.

 

The above was written by my Broker and included with my Insurance renewal for our RV9A.

 

Premiums have indeed reduced over the previous few years however, are now on the way up again. We were lucky in that the premium has only increased by $67.00 for the next twelve months. I note that Allianz have withdrawn from the Aus market. I believe RAAus have some Insurance with Allianz along with QBE? WILL it be too much longer before we are told by RAAus that they are to drop the Insurance cover for members due cost or availability???

 

Mike

I received the same news from my broker for my RV7A in July

 

 

[jetjr]

The deal on RAA website link has shared backing and done through PSB

 

Hopefully not impacted as it seems good value

 

 

[ave8rr]

The deal on RAA website link has shared backing and done through PSBHopefully not impacted as it seems good value

PSB is a broker. Allianz have left the market then whats going to happen at the next renewal?

 

 

[onetrack]

Some other insurer will come in and take up the slack when Allianz leave. Typically, companies such as the South African Hollard, who have moved into the Australian market in recent years.

 

The basic problem is that insurers operate in their selected, specialised fields, that they know and understand. Many insurers do not know or understand aviation insurance, so they refuse to get involved.

 

If brokers start looking for insurers who know and understand aviation insurance, and let them know there's a market out there looking for new players, then I'm sure the companies will step up.

 

Bottom line is, though, if Allianz are leaving the aviation insurance market because of inadequate returns, then any new insurance players will be charging higher premiums.

 

 

[Downunder]

WILL it be too much longer before we are told by RAAus that they are to drop the Insurance cover for members due cost or availability???Mike

I can't see the RAA dropping it but I can see them viewing it as another "cash cow" to milk members for extra dollars.

 

 

[Kyle Communications]

My insurance was a lot cheaper this year for the girlfriend...all because I had a rotax 912ULS and the aircraft has more then 100 hrs on it and the pilots have more than 100 hours. I couldnt get the money out of my pocket fast enough. It apparently has something to do with RAAA organising some companies to cover it.

 

 

[Kyle Communications]

By lots I am talking many hundreds of dollars

 

 

[kgwilson]

We have public liability for hangars and the aerodrome. I got our broker to provide an estimate of premiums for the year in April so I could prepare a budget. When the actual quotes came in about mid July there were only 2, QBE and Agile. Agile is new and set up by the ex Aviation Insurance Manager from Allianz. The Agile quote was 21% higher than the estimate received in May and QBEs was 71% higher than what they quoted last year. I queried the large increase at the time and this is the brokers response.

 

"Unfortunately, there a been numerous changes in the market during the year which has seen two insurers withdraw from writing aviation business within Australia. These changes have required insurers to review their rating guidelines which has seen premiums increased. After receiving Agile’s initial terms we re-approached them to negotiate a more competitive rate based on their indication earlier this year that they would quote a similar annual premium."

 

 

They didn't knock it back so my Insurance budget was blown..

 

 

[jetjr]

PSB policy now backed by Agile and QBE

 

Online quoting and rates seem pretty much the same.

 

These are much lower than other offers Ive had in last few years