Insurer Integrity in a Tough Market Continued from page 17 with insurance companies. However, if a per- centage premium increase is more important than the account relation- ship to an insurer, then maybe this year’s solution must be accepted due to lack of market competition. Often, new, competing relationships will be available tomorrow to return the favor for next year’s renewal. In addition, renewed safety efforts can assuredly earn better treatment from most insurers when they consider underwriting an aviation risk of any nature. Many recent articles have shared information about insurers’ reluc- tance to allow in-aircraft training, which previously was more popular, in favor of simulator training – especially for turbine powered aircraft. Training for mechanics is now a subject underwriters ask about more frequently as well. Details of all training for line-service technicians have also become much more crucial to insurers and beneficial in the pricing models that underwriters are able to offer Fixed Base Operators (FBOs). If your com- pany has ever questioned whether training was finan- cially viable, insurers are answering that question today: with insurance costs, deductible levels, or, even, insur- ance availability, insurers are incentivizing clients who properly train by offering insurance as opposed to declin- ing to do so when unacceptable training commitments are the practice for pilots and maintenance personnel. As we’ve experienced in the past, the cycle will swing. For now, even with increased training, we are experi- encing increased cost of insurance, increased insurance 18 deductibles, and tighter under- writing throughout the aviation insurance market. In due course, usually two to three years or so, the results will change and we’ll experience reduced insurance losses, increased consumer safety awareness, improved profitability for insurers, and relaxed underwriting requirements that lower rates and deductibles. Again, the cycle will be concluded. Time will tell how long this tough market will con- tinue. Between now and then, we watch for the integrity of the insurers that are reasonable within the mar- ketplace—fulfilling their promises to perform and act responsibly—and, as a result, will remain in business throughout the cycle. AssuredPartners Aerospace is one of the nation’s largest aviation insurance brokerage firms. Specializing in risk man- agement solutions specifically for the aviation industry, the company’s expertise includes business and general avia- tion, fixed base operations, aviation universi ties, airports, aircraft management companies, aircraft mainte nance facilities, aircraft owners and aerial application operations. In addition to serving many well-known businesses and individuals worldwide, AssuredPartners Aerospace is also program administrator for the National Air Transportation Association’s and the Independent Fixed Base Operator Association’s very successful Workers Compensation program. The company serves cus tomers through offices in Golden, Colorado; Dallas, Texas; Columbia, South Carolina; Frederick, Maryland; Wichita, Kansas; Phoenix, Arizona; and Hillsboro, Oregon. Aviation Business Journal | Fall 2019
