Insurance Rates Increasing

 

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Submitted by Don Charlebois, Owner of Airsurance LLC

Hopefully by now your broker, if he or she is on the ball, has informed you that effective 4/1/11, reinsurance rates are going up quite a bit, and unfortunately, that means we will all be paying higher premiums. Aviation insurance as a whole was hit pretty hard last year in terms of losses, and the as a result, and in combination with higher reinsurance premiums, that spells increasing rates. Sticking with the trends of how this should go, commercial operators will see increases first, followed by corporate or industrial aid as we call it, and finally, the little guys. As I said, hopefully your broker has mentioned this to you so you aren’t shocked if you get an increase. Are you all going to see an increase? All I can say they are coming. You may escape this renewal without one, but they are coming. Truthfully, the rates have been rock bottom for a long while now, the cyclic nature of this industry dictates that rates will rise again, and they are.

Sorry to bring bad tidings.. Hopefully this isn’t the first you’ve heard of it though. Fly safe, land safer.