> I have just got the re-newal notice on my tri-gear - horrors - it has gone up
by 25% to 2274 - ( 42K value - its a 412 VP prop )
> Are we all facing increases like this, one assumes because of Sept 11th, or
> are
we crashing more Europas - anyone paying significantly less than this on a
recent renewal basis ?
> Michael Dawson G-PEGY.
>
Sounds similar to situation in States, especially re experimentals.
9/11 is apparently a small part of bigger problems that predate it.
In browsing financials for one major ins co here, they recently lost
$2 in the stock market for every $1 in earned premium, depleting
reserves. And less cross-subsidy from the safe and lucrative
corporate jet market due to competition. For homebuilts, time was
when the most hours they ever saw (and the most risky) was the year(s)
of the 25-40 test period -- for which no hull coverage available.
After that, little annual use but a few local fly-ins. Now well more
than 1/2 of completions are cross-country and aerobatic planes that
are actually flown, increasing the insurer's exposure. Plus
homebuilts of the old days didn't have the 3rd party liability of
newer designs re passengers, but biggest payout is still
hull-in-motion. I have read they will still write affordable coverage
here if you don't want more than not-in-motion hull plus liability.
Best,
Fred F.
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