Marty Kent, Pres. of COPA asked that I repost this here:
I have seen much written here regarding insurance lately. I would like to offer some insight for the discussion.
I am the Branch Manager for NationAir Insurance Agency’s Pleasure and Business (Light Aircraft) Office. Cirrus Designs has asked NationAir to help them with their current insurance situation. Cirrus refers anyone with insurance questions or problems to us. We insure many already and of course hope to write many more by providing this service and those described below to you all and Cirrus.
First, I recommend that you all read my article “Aviation Insurance 101” published in the latest (Sept 14) issue of GA News page 26 and InFlight (Aug) page 75. (Same article in both.) It sets the stage for this discussion as it identifies the players for you.
I hear some of you talking about one agent’s quote versus another. The aviation insurance agents you choose to deal with represent the same companies. And switching to another agent (by signing a broker of record (BOR) letter) merely assigns the existing quotes to the new agent. The quote remains the same.
With that being said, let me tell you a little about what NationAir is doing right now for you all and Cirrus:
Educating underwriters (insurance company representatives) about Cirrus aircraft, pilot training, and accidents (i.e. the latest one which appears to be a maintenance failure as opposed to pilot error (i.e. scud running pilots)) with the hopes of calming them down, stabilizing and eventually lowering the rates.
Getting other insurance companies into the market for Cirrus aircraft and keeping them there. Currently not all companies quote Cirrus Aircraft (one stopped writing coverages this summer, one has not yet begun but will, and one just knee-jerked and announced they were going to no longer write SR-22s and we are asking them to review that decision.)
None of this will happen overnight. Right now is an extremely difficult time to get the powers that be at the insurance companies to make rational descisions (or any at all). The are all extremely caught up in the War Risk cancellations/changes/requoting that is going on (mostly affects charter and large corporations that do a lot of overseas travel.) This will pass.
I think it is great that alot of the companies (including Phoenix which is no longer writing Cirrus Aircraft models) are renewing current policies as expiring or even with decreases. This is valiant of them, but honestly sort of makes the new purchase quotes right now look ridiculous.
Please feel free to reply with questions. Or you can contact me at firstname.lastname@example.org.
John “JT” Helms