Tom Hauge

Each year, we see the highest volume of aircraft insurance transactions during the fourth quarter compared to any other time throughout the year. This is especially true as buyers rush to finalize transactions before December 31st.

Some buyers are motivated by tax planning strategies, while others make purchase decisions based on factors like election outcomes—yes, that really happens!

Regardless of the reason, the timing places added pressure on buyers to finalize both acquisitions and the necessary insurance policy and other ancillary services required (e.g., escrow, legal, finance and tax).

However, rushing through the process of obtaining aviation insurance coverage can lead to challenges. Binding a policy last-minute isn’t ideal, especially when it’s treated as just another item to check off an acquisition checklist.

Avoid Last-Minute Scrambling

Just as banks prefer at least 30 days' notice for processing financing, aircraft insurance brokers benefit from that same level of lead time to secure optimal coverage and pricing.

While it is possible to secure an insurance quote in under a week, rushing the process often leads to suboptimal results. This applies to both insurance policies and loan documentation. A hurried approach can leave both buyers and insurance brokers with fewer options, potentially resulting in higher premiums or less comprehensive coverage.

We generally recommend allowing at least two weeks from the time of initial contact with your insurance broker to the point of quoting and binding coverage. This window allows your broker to gather essential details, such as pilot information and applications, while fully understanding your risk profile.

The process of shopping for aircraft insurance is not instantaneous. In today’s market, it can take three to five business days for underwriters to respond with their interest in quoting a specific policy. During this time, your broker evaluates multiple offers, comparing coverage, limits and premiums to recommend the most favorable option.

Shortening this timeline may compromise your insurance coverage, as rushing the process leaves little room to explore the best market options. If some underwriters have not yet provided formal replies, there’s a risk that a more suitable policy could be overlooked simply because it wasn’t sent to the insurance broker in the shortened period of time.

The takeaway is clear: Yes, it’s possible to bind aviation insurance quickly when the purchase happens at the last minute. But that approach comes with trade-offs. By waiting too long to contact your insurance broker, you limit their ability to explore the full range of market options and secure the best policy for your needs.

Planning ahead isn’t just about convenience—it’s about ensuring your aircraft purchase is protected by the right coverage at the right price. So, if you’re considering buying an aircraft, don’t wait until the final days to get in touch with your broker. A little foresight goes a long way in setting you up for success.

As we head into Q4, the topic with the most buzz surrounding aviation insurance is the term “softening” marketplace. I’m sure some of you are seeing signs of this—especially if you’re currently insuring aircraft through an aviation insurance broker.

Why is the aviation insurance market showing signs of softening? One indication is that there is additional capacity, which means more underwriting companies entering the aviation space here in the USA.

Case in point, in the past year, we’ve seen 3-4 new underwriting company entrants. Some of these new insurers were existing insurance carriers for other lines of property/casualty coverages. And now they’re expanding their product offerings to include aviation insurance. (Namely aircraft hull and liability coverages, and aviation general liability coverage).

Within the past 18 months, interestingly, we’ve seen new additions in hull and liability carriers. Two of these insurers—Mach 2 and Eiger—are entirely new aviation underwriting companies. The other two—Rokstone and Beacon Aviation—are existing property/casualty insurers that have recently expanded into offering aviation product lines.

The additional market capacity is softening the premiums for certain classes of business. Namely those that are owner/flown, lower-to-mid-value turbine and some lighter piston aircraft classes.

As with all aviation insurance, it is never a ‘one-size-fits-all’ type of business. So, while some policies are currently seeing softening rates, others are seeing flat premiums or even lingering, smaller, single-digit increases.

The new insurers in the space have almost immediately impacted the $5M and below hull value aircraft. Not to mention, they’ve affected the $5M and below liability limit landscape. They’re doing this by providing more underwriting options for consumers, depending on pilot experience and asset values insured. From a consumer’s perspective, the current and future insurance path looks particularly favorable, compared to the years 2019-2023.

About the Author

Tom Hauge is a 20+ year aviation insurance industry veteran currently serving as National Sales Director for Wings Insurance. A 1992 graduate of the prestigious UND Aerospace aviation program. Wings Insurance is one of the largest privately held aviation insurance brokerages in North America who offers a ‘boutique’ customer experience but leveraging large brokerage house clout in the market.