This year’s Aviation Insurance Association (AIA) conference, held from April 28 to May 1 in Palm Springs, Calif., convened in the atmosphere of an aircraft insurance market that is putting smiles on the faces of aircraft operators while underwriters and brokers tussle in a highly competitive business environment.
European Union (EU) Regulation 785/2004, which went into effect April 30 and requires minimum aircraft insurance levels for war risk and third-party liability, has resulted in "severe financial impacts" for operators far greater than expected, according to the International Business Aviation Council (IBAC).
As deliveries of very light jets (VLJs) begin, concerns that they might be difficult to insure have almost evaporated. Manufacturers have had the chance to brief underwriters in depth about their models’ designs, performance characteristics and systems.
Operators flying within, to, from or over the 25-nation European Union (EU) need to check their insurance policies to ensure that they meet the new minimum liability requirements that will take effect on April 30. Failure to do so could result in the prohibition of flights, the withdrawal of operating licenses and, potentially, criminal prosecution.
A little over one year has passed since the European Union introduced higher minimum liability insurance requirements for aircraft registered within the EU, and those of foreign registry flying into or over its 25 member states.
New European Union minimum liability insurance standards that took effect April 30 are causing some U.S.-based operators to rethink their trips to Europe.
Various aviation insurance professionals seem to agree that the overall market has stabilized with premiums still significantly higher than pre-9/11 levels but with decreases in various segments. Some brokers have reported decreases in premiums as high as 25 percent, but those have turned out to be unusual cases. For those bizav operators who have seen decreases, the average reduction has been 5 to 10 percent.
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