There has been a lot of discussion about insurance in general and specifically for SR20’s and 22’s. I was an insurance broker soecializing in aviation (general up airlines) for 25 years and am also a SR20 Position holder.
To get down and dirty about the insurance issue with the real story may answer some of your questions and speculation.
1.There is not enough premium going into the system vs claims getting paid (the system being the domestic and international markets, direct and reinsurance. The real driver of rates is the international airline and product liability markets. In recent years they have been loosing their shirts on claims and have been operating at a loss for years. You can imagine what a Swiss Air MD-11 loss must cost for liability and hull.
Buying split limits i.e. $1,000,000 with a $100,000 sublimit for person or passengers is almost like buying no coverage. In in a court award $100,000 is pocket change. Your exposure to financial disaster is real. You see if you had the financial ability to buy an SR20 or 22 The plaintiff is going to find out and go after you in a big way.
The market conditions are not going to improve in the forseeable future for General and Airline insurance markets. Ther is only about $1.5 Billion in premiums in the market place and there are risks out there that can exceed $1 billion in paid claims and loss reserves (Swiss Air).
It will be more and more difficult for very low time pilots to get insured in aircraft with over 200HP and no instrument ratings also more expensive. Since a good portion of the premium taken in by the insurers is invested to improve their return, the recent down turn in the economy and financial market yeild will equal accelerated increases in premiums and rates.
What are the solutions? Very few… an owners association dedicated insurance program sometimes works but the numbers of Cirrus aircraft are very low to interest an underwriter in a dedicated program. Factory training and yearly recurrency will help but again it is the overall aviation market place that will dictate availability and pricing …not just the individual aircraft and pilot. I will post and ideas or solutions that I may find about and I strongly suggest that you folks out ther continue to communicate about your insurance programs and pricing.