In the face of soaring insurance rates, NBAA is advising members to emphasize their safety culture and compliance efforts to underwriters to help soften increases. NBAA and other organizations, such as the Aircraft Owners and Pilots Association, have reached out to insurance agencies in light of ongoing shifts in the insurance market.
“The insurance market has bottomed out just as we’re seeing a skyrocketing number of catastrophic loss claims,” Joseph Braunstein, managing director and general aviation practice leader at insurance broker Marsh USA, told NBAA. “Underwriters are now pushing sizable increases because they must remain viable.”
This process is taking longer, Braunstein further said, with renewal conversations now beginning as early as six months in advance of expiration rather than the typical 120 days.
Despite the sharp increases, NBAA stresses operators can take steps to find the right insurer and buffer the rate hikes, such as inviting underwriters to their facilities so they can have a first-hand look at the safety culture.
“Highlight your safety culture, compliance with IS-BAO, safety management systems, and your training proficiency, including recurrent and additional training,” said Mike Nichols, NBAA senior v-p of strategy and innovation. “Now more than ever, operators need to sell themselves as a manageable risk to their insurers.”