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DO YOU KNOW the difference between a hard market and a soft market?

LRingeisen

Well Known Member
Just like a rollercoaster, insurance rates have their ups and downs. Premiums will not always be increasing, just like they are not able to decrease every year. For about the past 10-12 years, personal aviation insurance premiums have been steadily declining. This is due to many insurance companies competing for your business during a soft market. There are many factors that can cause a market to be soft. One thing we tend to see during this time is more companies branching out to take on new challenges, such as entering the aviation market. Because of the lack of experience in this niche, their premiums can start off low. This can force our strong, well-established companies to lower their rates. It can also cause underwriting guidelines to be more lax in order for our current companies to keep their accounts.

So, just like a roller coaster, the rates will eventually hit bottom and have to start moving back up again. This is where we start moving into a hard market. This does not mean the rates will spike overnight and it doesn?t mean the insurance companies will start with a ?take it or leave it? attitude towards their policy guidelines. It means, back to our roller coaster scenario, the insurance cart is going to start slowly (click, click, click, click) moving up the hill again. It doesn?t happen fast and once you reach the top, we?re going to head right back down the hill toward another soft market.

Now what do you do when you?re heading into a hard market? Find a broker that is working for you! Here?s where I?m going to start tooting our horn again. 

Shanna, Katie, Kim and I do not make commission off of your accounts. We work as a team and are here to find you the best option for your situation. Besides the price, we look at the companies we place you with and the coverages they offer to make sure you are with the best fit for you. Just so there is a clear understanding of how brokerages get paid, let me explain that the insurance companies have their own set commission rates for what they pay each broker. The insurance companies cannot give different brokers different premium amounts, as long as the insurance companies receive the same information from each broker. This means no matter what broker you decide to go with, you pay the same.
Other reasons to choose Gallagher Aviation:
We specialize in light aircraft only.
We have access to all major markets.
We have a claim liaison dedicated to helping you through your claim process.
We have a great rapport with all of the underwriters.
We are the 3rd largest aviation broker and we have a large portfolio of other services to offer.
And most of all, how many other insurance companies can say they were named World?s Most Ethical Companies not only once, but seven times over? (Toot! Toot!)
 
paid advertiser

It is not veiled.... thinly or otherwise. I appreciate the summary of how the market works. I have seen my rates drop each year, and I thought it was just because I was such a hot pilot. Now I know the real reason. Humbled and happy.
Anyway, our donations and also advertisers keep Doug in business. I am glad they do.... Cheers.
 
Thinly veiled commercial post.

Yep. Paid forum advertisers and they like to keep the forum members informed AND they look out for our (experimental crowd) interests. You might shop for insurance for your project some day and appreciate their posts. :D
 
If they want to provide information to benefit the community, then provide the information and forgo the 50% of the message that is marketing.

Disregard. I was out of line.
 
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If they want to provide information to benefit the community, then provide the information and forgo the 50% of the message that is marketing.

:confused: the point of being a paid advertiser is marketing, the other 50% is bonus information for the community at large.

DR allows advertisers to make marketing posts, and Gallagher's maybe bi-monthly advertising posts always include another interesting fact about insurance. it's not like they blast their marketing daily or are overly obtrusive.
 
IMHO, If one was an insurance agent they could only hope to be as well liked and highly respected as the 4 very nice and informative Ladies are at Gallaghers. I for one appreciate their effort. Thank you Gallaghers. YMMV
 
IMHO, If one was an insurance agent they could only hope to be as well liked and highly respected as the 4 very nice and informative Ladies are at Gallaghers. I for one appreciate their effort. Thank you Gallaghers. YMMV


Agree 100%
 
Fair enough, I stand corrected. I thought it was against the posting rules but I guess it isn't. I still don't like it but I don't run the site.

I get so many spam emails and read so much material that is just ginned up marketing BS. It makes me want to puke, and to be honest it turns me off immediately. I thought this was a refuge.

You haven't been around the RV community very long I'm guessing! Nothing that comes from them is unappreciated for those who have been.

True. Just getting started. Can't wait to spend more time in the community so I can learn to appreciate internet marketing more...woohoo!
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Disregard. I was out of line.
 
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Leah and the gang at Gallagher are great, highly recommended! (Keep the informative posts coming)

Can't wait to spend more time in the community so I can learn to appreciate internet marketing more...woohoo!

@ops_geek Just curious, what would be your recommendation for a site such as this and how would you pay for it? A lot of people spend a lot of time here and don't donate a penny. At least it's RV related advertising, could be much worse.
 
Just getting started. Can't wait to spend more time in the community so I can learn to appreciate internet marketing more...woohoo!
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Well...you have pulled off an interesting introduction to the community, hoping your recent posts won't impact your long-term rep in the VAF community.......

Maybe you will soon find something you can respond to in a more positive manner. :)
 
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Well...you have pulled off an interesting introduction to the community, hoping your recent posts won't impact your long-term rep in the VAF community.......

Maybe you will soon find something you can respond to in a more positive manner. :)

Yeah, truthfully I don't even know why I'm reacting to this. I should know better. (Honestly...not sarcastically)

Forgive me VAF :)...let's get on with building (and insuring;)) airplanes.

Previous snarky comments redacted.
 
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Build Insurance

I tried to send a message on the website link that was posted but received a "Server Not Found" error.

My interest is in purchasing insurance during the build process. Things like fire, theft, tree falling through the garage roof, etc.. As we all know over time the value of the project increases as things like the engine, avionics ect. are added.
 
I have a builder's policy on my -10 project (not covered at all by my homeowners') and they have allowed me to increase coverage as the value of the project swells over time, no questions asked. (Just be able to document/defend your valuation, I suppose). Good peeps to deal with; always have been - very patient with this forgetful and busy fellow.:D
 
Builder's policy

I tried to send a message on the website link that was posted but received a "Server Not Found" error.

My interest is in purchasing insurance during the build process. Things like fire, theft, tree falling through the garage roof, etc.. As we all know over time the value of the project increases as things like the engine, avionics ect. are added.

Call. They are very nice.
I also started with a basic Builder's Policy to cover hull cost and gradually increased it.
 
I don't drink and I have only been to AV once, but I buy my insurance from Gallagher because they sponsor the party and are always so friendly when I renew each year.
 
Just Wish They Could Help Here In Alaska

Did not ask for a quote this year, last year and the year before they said they can't help with coverage in Alaska.

My broker charges what I consider way to much. Contacted a broker that is located in Anchorage said they can't help me, because I'm already insured with the same company, although through another broker. Won't tell me how much their rates are.

The company in Anchorage has payment options vs., total cash up front. Quite frankly this is a bunch of ______.

In ten years time, will have paid twice for my RV-6. Yes, it costs that much. IFR rated both rotorcraft and SEL.

Now I know why most "private" owners of GA aircraft up here, decide not to insure. Harder and harder to find fault with that!

For car insurance been with the same company since 1985.

Best regards,
Mike Bauer
 
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Gallagher has always been good for me

I have had nothing but excellent service and lowest prices available on my -4 since I began insuring (2006) with Shanna and the crew at Gallagher. You are a great plus for Van's builders. Thanks!
 
Dang, someone is grumpy :mad: As we say down here in Coca-Cola country, Have a Coke and Smile :D - I thought I was about to read another enlightening post about the aircraft insurance market and then BAM, it went south :eek:
Well at least there was a lesson learned... I hope.
 
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