Insurance repercussion in the GA market due to MH17 and other comm losses?

[docmirror]

Got this from my GA insurer:

LARGE LOSSES LEADING US INTO A HARD MARKET

Due to the tragic Malaysian Airlines losses this year, along with almost $2B worth of damaged aircraft in Libya this week, the aviation insurance marketplace is in turmoil. Libyan militias have destroyed more than 21 aircraft, as of the writing of this newsletter.

Some are describing this group of events as a "mini 911" in terms of aviation insurance marketplace impact. The same small group of reinsurers that cover these catastrophes provide reinsurance for the rest of the worldwide aviation insurers. Therefore we expect some kind of impact for all aviation market segments.

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I know a little about actuarial methods, and a little about aviation, and just my one little opinion, spreading risk pool for international commercial losses to the domestic GA world is kind of galling. Now, I understand the re-insurance market a bit as well, and I know that those folks have lost money this year, but to raise our retail rates due to the other clearly defined losses due to war kinda makes me want to self-insure.

What are your thoughts if you get a premium increase soon?

 

[ClimbnSink]

If you can't afford to self insure you can't afford to fly.

 

[docmirror]

If you can't afford to self insure you can't afford to fly.

That must be why the GA insurance market is a multi-billion dollar industry.

 

[bnt83]

Got this from my GA insurer:

LARGE LOSSES LEADING US INTO A HARD MARKET

Due to the tragic Malaysian Airlines losses this year, along with almost $2B worth of damaged aircraft in Libya this week, the aviation insurance marketplace is in turmoil. Libyan militias have destroyed more than 21 aircraft, as of the writing of this newsletter.

Some are describing this group of events as a "mini 911" in terms of aviation insurance marketplace impact. The same small group of reinsurers that cover these catastrophes provide reinsurance for the rest of the worldwide aviation insurers. Therefore we expect some kind of impact for all aviation market segments.

######

I know a little about actuarial methods, and a little about aviation, and just my one little opinion, spreading risk pool for international commercial losses to the domestic GA world is kind of galling. Now, I understand the re-insurance market a bit as well, and I know that those folks have lost money this year, but to raise our retail rates due to the other clearly defined losses due to war kinda makes me want to self-insure.

What are your thoughts if you get a premium increase soon?

If I'm not mistaken, many policies don't cover losses due to war/terrorism.

 

[frfly172]

I Haven't seen the insurance companies being evicted from those huge buildings .

 

[JHW]

Avemco does a lot of business in libya do they?

 

[Ted]

If you can't afford to self insure you can't afford to fly.

I'll make sure to tell that to my friends who own cabin class twins that are worth (and insured for) more than my house.

 

[PPC1052]

If I'm not mistaken, many policies don't cover losses due to war/terrorism.

On the property side, sure. But maybe not on the liability side. If MH317 was flying in an area it should not have been, the liability carriers are probably going to be paying.

 

[docmirror]

On the property side, sure. But maybe not on the liability side. If MH317 was flying in an area it should not have been, the liability carriers are probably going to be paying.

The flight was under positive control by Ukrainian ATC is my understanding. They were not free to continue own navigation. If it was off course, that could factor in, but I have a hard time believing that it was that far off course without a warning from ATC.

If that is the case, then some possible liability will default to MH carrier, and subsequent to their insurance carrier. Even in that remote situation, how it affects the risk pool of GA is pretty hard to swallow. Socialization at it's finest.