| | | |

The Aviation Insurance Landscape

This is a re-post from Assured Partners Aerospace’s 2nd quarter Newsletter. The full newsletter can be found on Assured Partners website.


Until the war in Ukraine, the aviation insurance market could be described as “stabilizing” after a couple years of volatility with higher premiums and tighter underwriting. However, and hopefully perhaps only for the short-term, the Ukrainian war immediately brought uncertainty back into the worldwide aviation insurance market. 

According to Business Insurance, “the impact of Russia’s invasion of Ukraine represents the biggest potential loss to the aviation war market since 9/11.” One leasing firm alone has reportedly already filed a claim of approximately $3.5B for aircraft and engines they say have effectively been seized by Russia. And, because the aviation insurance arena is so small, what happens around the world at this magnitude can have cascading, detrimental effects on the US aviation insurance market.

In addition, the well-publicized spike in fuel prices could have another cooling effect on aviation operations. Generally, less air activity combined with higher operating costs equates to more frequent requests for reduced coverage, taking premium dollars away from an already-small market.

Aviation insurance buyers should therefore remain on the alert throughout 2022 for potentially quick changes to the aviation insurance marketplace that might affect either their current insurance program or their next renewal.


See our recommended insurance agencies on our Aircraft Acquisitions page.

Similar Posts

  • Cirrus Simulator Training

    Let’s face it: airplanes are not the best classrooms. The propeller is running, the engine is making lots of noise, the pilot is attempting to multi-task and the instructor is barking orders. That’s almost as much overstimulation as being a parent to 4 kids under 10 (I have experience in that arena!). That’s even before takeoff!

    At Texas Top Aviation, we have observed many situations where a simulator would be an excellent way to introduce different concepts and supplement training. Now, in our Austin Executive (KEDC) office, we finally have a really good simulator.

    Meet the Noble Flight Simulator, the next best thing to a Cirrus cockpit. With the Noble Flight Simulator, we can duplicate 6 different types of Cirrus aircraft (G3 SR22, G3 SR22T, G5 SR22, G5 SR22T, G6 SR22, and G6 SR22T). The Garmin Perspective panel easily swaps between the G3 and G5 configuration to the G6 configuration, so the buttons are all in the proper places.

    Having button pushing problems? The simulator is the place to practice.

    Want to experience actual emergencies? An engine failure is a lot less stressful in a simulator.

    Want to pull CAPS (Cirrus Airframe Parachute System)? The Noble Flight Simulator has a realistic CAPS handle with the same amount of pull pressure that the CAPS handle in the airplane has.

    Need an IPC or want to practice approaches? All approaches done on a Noble Flight Simulator are luggable, plus a full IPC can be accomplished.

    Want to save fuel? The Noble Flight Simulator is for you!

    To top it all off, the Noble Flight Simulator that Texas Top Aviation has is classified as an Advanced Aircraft Training Device. It is certified to the highest standards of non-motion simulators, allowing pilots working toward their private and instrument ratings to log a significant amount of time toward that certificate or rating. Up to 20 hours of IFR training is allowed to be logged in an AATD toward an instrument rating. That’s huge!

    Texas Top Aviation is also developing a CAPS specific course to expose Cirrus pilots to the many different scenarios where pulling CAPS would be necessary. This teaches Aeronautical Decision Making to Cirrus pilots who struggle with the decision of whether or not to pull CAPS. Look for CAPS course information under our Aircraft Training page later this summer.

    Interested in checking the simulator out? Contact us today!

    Let’s face it: airplanes are not the best classrooms. The propeller is running, the engine is making lots of noise, the pilot is attempting to multi-task and the instructor is barking orders. That’s almost as much overstimulation as being a parent to 4 kids under 10 (I have experience in that arena!). That’s even before…

  • Embraer Legacy 450

    Brazilian manufacturer Embraer recently received FAA certification for it’s “mid-light” Legacy 450.  Capable of Mach .83 and a 2,500 mile range, this is one sweet airplane.  Embraer designers gave passengers headroom as the cabin stretches up to 6 feet in height down the center.  Complete with fly by wire controls and a full glass cockpit configuration, Embraer did a wonderful job with this airplane.  The club seats even fold down to a bed!

    The airplane’s list price is $16.5 million.  To learn more about the Legacy 450, visit Embraer’s website.

    Embraer Legacy 450

    Brazilian manufacturer Embraer recently received FAA certification for it’s “mid-light” Legacy 450.  Capable of Mach .83 and a 2,500 mile range, this is one sweet airplane.  Embraer designers gave passengers headroom as the cabin stretches up to 6 feet in height down the center.  Complete with fly by wire controls and a full glass cockpit…

  • AOPA Air Safety Institute: More Difficult Decisions

    The AOPA Air Safety Institute is making it’s annual loop through Texas this January. The topic for this Safety Seminar is “More Difficult Decisions: Choices & Consequences.”

    The seminar is geared our the decision making process that we as pilots face on each flight. Some decisions are easy (what altitude should I pick?) while some have much greater consequences and should be taken very seriously.

    This event will be interactive for the participants as several scenarios will be presented. The goal is to help pilots learn to think through each decision, weighing the consequences along the weigh to arrive at the safest outcome of the flight.

    The first area seminar will be held on Tuesday, January 21st at the Stinson Field Airport (KSSF, 8535 Mission Road, San Antonio, TX 78214). The second area seminar will be held on Wednesday, January 22nd at the TXDOT office in Austin (200 E. Riverside Dr., Austin, TX 78704). WINGs credit is available for all attendees.

    Learn more here.

    The AOPA Air Safety Institute is making it’s annual loop through Texas this January. The topic for this Safety Seminar is “More Difficult Decisions: Choices & Consequences.” The seminar is geared our the decision making process that we as pilots face on each flight. Some decisions are easy (what altitude should I pick?) while some…

  • Flight Training Deemed Essential Business

    There have been lots of changes in all parts of our lives with the coming of COVID-19. All of our lives have been affected in one way or another. We hope and pray that none of your families have been directly affected by the illness.

    A lot of us have been living under Shelter in Place orders for several weeks now, only going out for groceries and making sure to keep our distance from people. We have to take a different mindset when we go out now. Even meeting new people is different since we can’t shake hands.

    Flying has been an afterthought for a lot of pilots. There have been multiple ATC facilities where controllers have been afflicted with the virus and have had to shut down for hours or days. Airspace can change pretty quickly, going from what we all know as normal, to an ATC-ZERO scenario. This was the case for New York Center several times over the last two weeks.

    There was some uncertainty regarding flight training under the shelter in place orders and Texas Top Aviation has been asked several questions about it over the last week. Yesterday, the Flight School Association of North America (FSANA) announced that flight instruction was indeed an essential business.

    In an article on GeneralAviationNews.com, the website quoted a memorandum of understanding written by attorney George Winton on March 24th. Winton was a senior attorney for the FAA and U.S. Department of Justice, and now operates The Aviation Law Firm in Annapolis, Maryland.

    “This memorandum affirms the statement that…flight training would be included as a critical infrastructure activity. Those engaged in the provision of and receipt of flight training who work to provide enhanced compliance with CDC recommendations for limiting potential COVID-19 exposure and spread would be considered exempt from travel limitations imposed by local authorities.”

    Winton’s memo was sent to the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA). In the memo, Winton stated:

    “CISA listed Other Community-Based Government Operations And Essential Functions as follows: Workers who support necessary credentialing, vetting and licensing operations for transportation workers.”

    “The aviation sub-sector stakeholders involved with operation of recreational aircraft and flight schools, who employ Essential Critical Infrastructure Workers from the Transportation Sector, support necessary credentialing, vetting and licensing operations for transportation workers seeking pilot certification by the Federal Aviation Administration. Since CISA intended to be overly inclusive to reflect the diversity of industries, the aviation mode stakeholders understand that essential employees involved with the operation of recreational aircraft and flight schools continue to be identified as Essential Critical Infrastructure Workers from the Transportation Sector. Accordingly, the aviation sub-sector stakeholders who employ Essential Critical Infrastructure Workers from the Transportation Sector will continue to operate recreational aircraft and flight schools, appropriately modified to account for CDC workforce and customer protection guidance, based upon the CISA memorandum dated March 19, 2020.”

    Based on the above guidance, Texas Top Aviation will continue to operate flight training in all of it’s normal capacities, while maintaining vigilance concerning sanitation, cleanliness, and health. Our company will keep it’s customer’s up to date on instructor health and wellness and won’t hesitate to cancel if there is any kind of health concern. We ask our customers to do the same.

    If you are scheduled to train with Texas Top Aviation, please don’t hesitate to contact us with any questions or concerns you might have.

    To read the entire memo from George Winton, you can find it here.


    Concerning the 2020 Texas Top Aviation Santa Fe Golf Fly In scheduled for June 5th-7th, that event is currently being re-scheduled for September 2020. Dates will be announced by the end of April. We look forward to seeing you in Santa Fe in September!

    There have been lots of changes in all parts of our lives with the coming of COVID-19. All of our lives have been affected in one way or another. We hope and pray that none of your families have been directly affected by the illness. A lot of us have been living under Shelter in…

  • A Takeoff Briefing

    Takeoff briefings are one of those things that most pilots are taught when they first learn how to fly, but once they get into flying themselves around, quickly fall by the wayside.  There is a reason student pilots are instructed to perform a takeoff briefing before departure.  It gets them thinking about what the plan is after they get off the ground and what to do if something goes wrong.

    Takeoff Briefing

    Takeoff briefings are a good habit to get into.  Airline crews do a takeoff briefing before every departure, even though they have performed a takeoff in that particular airplane thousands of times.  It enhances safety and provides repetition, keeping that knowledge at the forefront of the crew’s minds.

    In general aviation, a takeoff briefing should cover what the takeoff procedure is, what the abort plan is, and what the plan after takeoff is.

    Takeoff Procedure

    Most pilots fly the same airplane all the time, so the familiarity with what goes into a takeoff is there.  But, habits should be formed to brief the takeoff procedure as part of the takeoff briefing.  It doesn’t need to be extensive, just covering the basics of how the airplane is getting off the ground.  Something like this:

    • Throttle setting (if turbo charged, will full throttle cause an overboost?)
    • Rotate speed
    • Expected takeoff roll

    That’s it.  Nothing fancy for the takeoff procedure.

    Abort Plan

    What is the plan if something goes wrong?  It doesn’t have to be an engine failure, maybe the engine coughs when full power is added or maybe the engine doesn’t produce peak RPM.  Maybe the takeoff roll is longer than anticipated and something doesn’t seem right.  Maybe on climb out a door pops open.  Maybe the engine fails at 1,000 feet.  It’s good to keep the plan in the foreground for what to do if an abnormal or emergency situation takes place.

    • Brief the aborted takeoff procedure
      • Pick an abort point on the runway based on the expected ground roll
      • What is the procedure if the airplane isn’t off the ground by then?
      • What is the procedure if the engine quits on the runway?
    • Brief the engine failure procedure at low altitude
      • If the engine fails over the runway, will you try to land on the runway?
      • What altitude would you elect to turn back as opposed to landing straight ahead?
      • If the plane is too low to turn back, would you land straight ahead or aim left or right?
      • What airspeed will you aim to hold if the engine fails?
    • In a Cirrus, what is your minimum parachute deployment altitude?

    After Takeoff Plan

    After the airplane is off the ground, what’s the plan then?  Are you staying in the pattern or departing the area?  Do you need to adjust your power at a certain altitude?  What altitude are you climbing to?  What heading are you going to fly?  Is your flight plan in your GPS?  This is an excellent time to set up altitude and heading bugs if your airplane is so equipped.

    Get in the habit of doing a takeoff briefing before you call the tower or announce your departure.  It get’s your mind focused on the task at hand and then what is going to be happening next.

    Takeoff briefings are one of those things that most pilots are taught when they first learn how to fly, but once they get into flying themselves around, quickly fall by the wayside.  There is a reason student pilots are instructed to perform a takeoff briefing before departure.  It gets them thinking about what the plan…

  • Setting Standards

    Type Clubs Lead By Example with Standard Operating Practices

    This article appeared in the May 2019 edition of EAA’s Sport Aviation Magazine. It is used with permission. For other articles by Charlie Precourt, please visit EAA.org and join for a full subscription.

    Imagine a year when there are no fatal accidents in general aviation. Does that seem impossible? The airlines achieved that many years ago, and so can we if we focus on the right things in our safety pro- grams. In fact, the overall trend in GA accident rates over the last few years is very encouraging. AOPA’s Air Safety Institute published its annual GA Accident Scorecard recently (see www.EAA.org/ extras), revealing fatal accidents from 2008 to 2017 are down more than 30 percent. Nevertheless, there were 185 fatal accidents in 2017, so we still have a long way to go. But, there are many developments in safety programs across GA that can keep the trend going.

    One such development that I’ve advocated through a couple of type clubs is establishing standard operating practices (SOP). When I flew for both the U.S. Air Force and NASA, we had what we called standard operating procedures. They were the law for our flying. That is, we had to follow them procedurally because the folks that paid our salaries said so. The objective was to ensure we all used the same playbook, minimizing the risk that one of us might develop a bad in-flight habit that increased risk to the organization.

    One way to think about SOPs is to recognize the difference between procedure and technique. For example, you have to follow the manufacturer’s pilot’s operating handbook (procedure)where it says to lower the landing gear before landing. If you don’t, you are in for a bad day. However, it does not tell you exactly when to lower the gear; that’s left to technique.

    In the middle, between procedure and technique, is a best practice. In this example, lowering the gear just before the final approach fix is a “standard practice.” It is the generally accepted “best” place to lower the gear. In GA, however, aircraft owners don’t generally answer to a boss, so I prefer the term practices instead of procedures.

    However, whether or not someone is paying us to fly, following best practices just makes sense. If you have a good set of practices, they enable you to do things the same way every time, leaving lots of brain cells to manage the unusual, the things that might go wrong. The safest approach to accomplishing a flight task is one that leverages consistency. On the other hand, if you are inconsistent, doing flight tasks differently each time, you’ll always be struggling to keep up. So, in my involvement with the safety committees for both the Malibu Mirage Owners and Pilots Association and the Citation Jet Pilots Association, there has been broad acceptance of recently developed standard operating practices.

    The good news in this development is that a culture of safety is growing broadly across most sectors of GA through these type club initiatives. Perhaps more importantly, there is much to learn from each other about the effectiveness of these various initiatives. EAA has seen a four-year drop of 47 percent in fatal accidents among homebuilts! So, there must be something right going on there — a major focus on appropriate transition training before flying a new homebuilt (as a standard operating practice) is paying off.

    So, what is covered in the SOPs these type clubs have developed? The following outlines the kinds of standard practices other type clubs have set up and represent SOPs you could establish for yourself regardless of the type of aircraft you fly. You just have to fill in the blanks for your particular type and commit to sticking to them in your flying. These are notional and are practices (not mandatory procedures). They don’t tell you how to fly your aircraft; they give you things to think about when you do. If you take a bit of time to set your own SOPs and then stick with them, you’ll be a far safer pilot. Here are some ideas:

    Duty Day

    Set the maximum number of hours of flight time during a calendar day and rest hours off between flying days. One example is a maximum of eight hours in the air and a minimum of 10 hours off until flying again.

    Cargo

    Establish best practices for what you will carry as cargo. One example is no lithium batteries in the baggage compartment.

    Flight Planning and Preparation

    What are your limitations for the types of flight you’ll take on? Consider SOPs such as designating a suitable alternate airport for all flights. Another might be for first flights after significant maintenance, such as no flight at night or in IMC until a day-VMC functional check flight has been done.

    Runway Field Length Guidelines

    Establish an appropriate minimum field length for your aircraft and commit to not going into shorter fields. Consider sea level operations and high-altitude airports as well.

    Surface Operations

    What should be your maximum wind conditions for taxi, takeoff, or landing? Maximum acceptable crosswinds on landing? Set them in your SOP and stick to them.

    En Route

    Consider establishing practices like no non-operationally necessary conversation below 10,000 feet MSL, during any segment of an approach procedure, or during the last 1,000 feet before leveloff during climb or descent. Also consider declaring “minimum fuel” when the fuel state becomes less than fuel to destination plus 45 minutes at current burn, even if flying day VFR.

    Approach and Landing

    Consider establishing personal minimums in your SOPs for things like visual approaches. Perhaps use a 1,500-foot ceiling and 3 miles’ visibility for day and 5 miles for night, even though these exceed the FAA’s requirements.

    Pilot Limitations, Training, & Currency

    FAR Part 91 rules allow us to fly with pretty marginal levels of currency. Consider setting your own SOP to something more appropriate for the kind of aircraft you fly and the kind of flying you do in it. For example, consider these ideas as SOPs:

    • If you have less than 100 hours of time-in-type or have not flown at least 15 hours as pilot in command in the last 90 days, use a minimum planned fuel reserve of one hour.
    • Also, if flying IFR in this situation, use a minimum visibility for takeoff of 1 mile.
    • On instrument approaches, increase the published minimums by one- half mile visibility and add 200 feet to the decision altitude or minimum descent altitude.
    • Perform landings at a weight that allows a full stop in 60 percent of available runway length.
    • Consider an SOP that establishes you will fly with a CFI on a refresher flight before flying as pilot in command if you have not logged at least an hour of flight time and one takeoff and landing in an aircraft of the same type within the preceding 45 days.

    Maneuver Standards

    Wherever there are “techniques” associated with things like takeoffs and climbs, cruise, use of autopilot, power settings, and approaches and landings, you can write down your preferred technique as your own SOP. Describe each maneuver in enough detail (speeds, altitudes, power settings, configurations, etc.) to define a routine you will use each time. This ensures you fly consistently each flight and leverage the power of the standard operating practice, that is, to give you the bandwidth you need should you encounter an unexpected event or an emergency.

    SOPs are among the exciting concepts underway to make safety programs work for us. Hats off to type clubs like MMOPA and CJP and many others that are taking the initiative. But even if you’re not in this kind of group, you can still set up your own SOPs. Let’s all look forward to our first year in GA without a fatal accident — and let’s make it soon!
    Fly safe!


    Charlie Precourt is a former NASA chief astronaut, space shuttle commander, and Air Force test pilot. He built a VariEze, owns a Piper JetPROP, and is a member of the EAA board of directors.

    Type Clubs Lead By Example with Standard Operating Practices This article appeared in the May 2019 edition of EAA’s Sport Aviation Magazine. It is used with permission. For other articles by Charlie Precourt, please visit EAA.org and join for a full subscription. Imagine a year when there are no fatal accidents in general aviation. Does…

Leave a Reply

Your email address will not be published. Required fields are marked *