American Bonanza Society Magazine

After several years of market expansion and increased capacity that has led to more affordable rates, it appears that the aviation insurance market has started to contract – or at least stabilize. We have recently seen one market cease to write aviation insurance in North America and have not had any new general aviation underwriting facilities start up in over a year. So what does this mean to the Baron/Bonanza owner? When new companies enter the market and compete for new business, rates go down. When the market stabilizes and companies are not so competitive for new business, rates stay the same or may increase a little bit. By the end of 2012 we had already seen one company increase its rates, and other markets were no longer offering the premium reductions we have enjoyed since 2005.