What Drives Insurance Cost?

[Rene]

Obviously total time, time in type, ratings, claim history. Hull cost if that is covered. But what else?

Claim history of the model?

I ask because I have been given significantly different quotes on different models (with the older tail-dragger quoted at a lower cost than a newer nose-and-tail- dragger (nosewheel and skid). Same low-time pilot, same airport, same company, different airplanes.

 

[frfly172]

One of the driving forces is now the pilots age.

 

[Chip Sylverne]

The return on capital invested in loss reserves.

 

[Racerx]

Curious what kind of quotes you've been given and what planes you're looking at.

Iirc you hadn't even taken lessons yet but now have your ppl in 2 months? Most can't get a dpe scheduled in that time frame.

 

[Clip4]

State aircraft is based. Hangared / un-hangared.

 

[Anthem]

Are you comparing the same hull value ?

 

[Rene]

Curious what kind of quotes you've been given and what planes you're looking at.

Iirc you hadn't even taken lessons yet but now have your ppl in 2 months? Most can't get a dpe scheduled in that time frame.

I'm working on my SPL and exploring future options. I do know someone who scheduled a DPE at 22 hours and had 40 by the day of the practical.

 

[Rene]

Are you comparing the same hull value ?

No, but it isn't proportional -- which I assumed it would be (X per K).

 

[Shepherd]

Greed

 

[Checkout_my_Six]

risk....

 

[robin ardoin]

risk....

...and exposure. Exposure such as hull value and seat count...higher insured value and more passengers equate to higher potential payouts.

 

[Zeldman]

What Drives Insurance Cost?

Insurance companies.??

 

[Capt. Geoffrey Thorpe]

Compensation Information for Peter Zaffino, Chairman & Chief Executive Officer of AMERICAN INTERNATIONAL GROUP | Salary.com

Salary, bonuses, stock options, stock awards and other compensation for Peter Zaffino, Chairman & Chief Executive Officer at AMERICAN INTERNATIONAL GROUP. How much did Peter Zaffino make as Chairman & Chief Executive Officer of AMERICAN INTERNATIONAL GROUP in 2023

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As Chairman & Chief Executive Officer at AMERICAN INTERNATIONAL GROUP, Peter Zaffino made $24,617,936 in total compensation. Of this total $1,500,000 was received as a salary, $9,000,000 was received as a bonus, $3,499,989 was received in stock options, $10,359,302 was awarded as stock and $258,645 came from other types of compensation. This information is according to proxy statements filed for the 2023 fiscal year.

 

[Half Fast]

One of the driving forces is now the pilots age.

Good point.

@Rene , are you over 70?

 

[Albany Tom]

My vote is lack of competition combined with ineffective regulation, supported by lobbying second only to the drug companies last time I checked.

 

[Llewtrah381]

My vote is lack of competition

The barriers to entry are pretty low for aircraft insurance, which means if it was lucrative there would be lots more participants. The lack of competition is most likely because of a lack of worthwhile payoff.

 

[Albany Tom]

The barriers to entry are pretty low for aircraft insurance, which means if it was lucrative there would be lots more participants. The lack of competition is most likely because of a lack of worthwhile payoff.

Agree. My answer was more the general case than the specific. It's lack of competition here, because it's a small market, also agree.