The rise in insurance premiums in the past five years has been brutal for operators and owners. It cost roughly twice as much to insure an aircraft hull in 2023 compared with 2017.

“No underwriters are jumping around saying that rates are going to fall significantly in the first half of the year,” says Todd Guelich, senior vice president, at broker AssuredPartners Aerospace. “No one is trying to grow market share and there is no race to the bottom, but the good news is that the big increases in premiums look to be over.”

The aviation insurance market is a special one. Brokers typically have fewer than 20 underwriters competing for large business jets – with less than 10 considered strong by Guelich. The underwriters then typically find re-insurers to take on the risk.

“The first two quarters of the year usually see underwriters getting the pricing they want, with the market setting the price in the second half,” says Guelich.

Insurance is never just about premium. “Underwriters can be very prescriptive,” says Guelich. “I would argue that there has never been a claim where an underwriter demanding conditions has ever stopped a loss from happening. But it can make underwriters feel better. Our job as brokers is often to push back on these.”

Rates rose after 2019 – and then accelerated in 2020 and 2021 – because underwriters had lost money in aviation. Benjamin Peterson, CEO, Sunset Aviation Insurance, says that four new aviation underwriters have entered the market in the last year. Many of these are focusing on risks with less coverage such as owner pilots shifting from turboprops to jets and smaller helicopters. Several underwriters are showing more interest in insuring helicopter operators. The market is also being more flexible with younger pilots. 

“Pilot age makes a big difference, but things have improved,” says Peterson. “It is still hard to find an insurer for a single-pilot owner older than 75 but insuring a 70-year-old is easier now then it was two years ago.” 

Owner pilots may start paying less this year. “Some owner-pilots had 100% premium rises in 2021,” says Sunset’s Peterson. “If you had transitioned to a jet from a turboprop or were a new pilot you were basically hit as the tide came in raising all boats. Now they are benefitting as the tide is at least stabilising and they are now more experienced. I am not saying the tide is about to go back out again but at least things have normalised.”

Underwriters may be happier now, but they have been hit with the rising costs when fixing aircraft. “The cost of repairs are now staggering,” says Guelich. “This is not giving underwriters much incentive to cut premiums.”

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Protests against private jets, airports and trade shows, such as EBACE 2023, seem to be growing apace – mainly (but not exclusively) in Europe. It’s been matched in Europe by an apparent growing frustration at the industry’s vulnerability to such action.

The European Business Aviation Association (EBAA) told CJI last month of its “increasing concern” about the implications of destructive and disruptive airport protests for the broader aviation industry. “The EBAA calls upon the individual members states to actively prosecute those individuals who knowingly breach and enter secured airport spaces,” a spokesman told us. “We acknowledge and respect the public’s right to protest, but activism should not compromise the safety of passengers, crew, and airport personnel.”

Social media posts about the topic on LinkedIn by EBAA, Globe Air and CJI drew hundreds of responses. Here’s a flavour: “It’s ludicrous that an industry body has to remind law makers/enforcers that individuals who commit criminal acts need to be effectively punished,” wrote Tim Barber, Aircraft Sales and Acquisitions EMEA & Asia, Duncan Aviation. “A criminal act is a criminal act regardless of the cause.”

Frans Dechaene, director of Operations at European charter operator FlyingGroup noted: “When a pilot wants to access his/her aircraft he/she has almost to undress at ‘security’. Whereas the same airports allow gangs of eco terrorists to swarm across the runway and close down an entire airport, at the same time damaging precious aircraft. Where is this madness heading to?”

GlobeAir’s LinkedIn post on our story about airport security proved particularly popular, drawing more than 100 responses. “GlobeAir is committed to ensuring the safety and security of our passengers, crew, and airport personnel. Recent developments have highlighted the increasing concern about disruptive airport protests affecting the broader aviation industry,” it posted on LinkedIn last month. “While we respect the public’s right to protest, activism must not compromise the safety and functionality of airports.”

It’s activism that is leading to more protection for principals, planes and the airports that serve them, according to MedAire, the security, medical and travel consultancy. “We have observed an increase in both the frequency and intensity of protests targeting the business aviation sector,” Jeremy Knochel, global security manager, Aviation & Maritime, MedAire told us. “Activists have caused significant damage to private aircraft, resulting in substantial financial losses.”

GlobeAir’s LinkedIn post on our story about airport security proved particularly popular, drawing more than 100 responses. “GlobeAir is committed to ensuring the safety and security of our passengers, crew, and airport personnel. Recent developments have highlighted the increasing concern about disruptive airport protests affecting the broader aviation industry,” it posted on LinkedIn last month. “While we respect the public’s right to protest, activism must not compromise the safety and functionality of airports.”

It’s activism that is leading to more protection for principals, planes and the airports that serve them, according to MedAire, the security, medical and travel consultancy. “We have observed an increase in both the frequency and intensity of protests targeting the business aviation sector,” Jeremy Knochel, global security manager, Aviation & Maritime, MedAire told us. “Activists have caused significant damage to private aircraft, resulting in substantial financial losses.”

There’s a growing list of airports targeted by protests – and not all of them are in Europe. In February this year, a coalition of protestors targeted London Luton Airport, Schiphol Airport in Amsterdam and Bromma Airport in Stockholm. It followed protests against private jets in Brussels, Seville and Los Angeles. High profile attacks have also taken place in northern Germany, at EBACE 2023 in Geneva and in July, on an Embraer Phenom 300E on the Mediterranean holiday island of Ibiza.

These were not isolated incidents but evidence of a rising tide of protest, according to MediAire. “We anticipate that these protests may escalate in frequency, disruption and damage to the aviation community,” said Knochel.

It’s not just a case of beefing up security at airports that cater for private jets – although that can be a key step. “In Europe and North America, most small airports have robust security measures in place but there can be gaps due to the less stringent regulations compared with commercial airports,” said Knochel.

Another part of the remedy is more comprehensive risk assessment and enhanced protection for principals, planes and airports. “It’s crucial to proactively gather information about potential protest activity in the area that could disrupt operations. This includes creating contingency plans for potential disruptions and conducting pre-travel briefings to ensure all crew members and guests understand the appropriate responses to protestors,” he said.

The British Business and General Aviation Association (BBGA) has suggested nine general strategies that airports and authorities might employ to deter disruptive airport protests. The top four are: designated protest areas, clear communications, engage with protestors and increased airport security.

Could the rising tide of protests against private jets, their owners and operators plus the airports from which they fly drive a hike in insurance premiums? While there’s no evidence of that, industry insiders don’t discount the possibility.

Todd Guelich, senior vice president at insurance firm AssuredPartners Aerospace reports no underwriter concerns related to the airport incursions by the protesters yet. However, that could change. “I would not expect to see any defined reaction to sporadic activity,” he tells CJI. “But should there be a trend related to defined airports where losses can be tracked frequently, there could be some form of deductibles or location surcharges considered.”

Admittedly, most people in business aviation are more concerned about white tails with wings rather than their ungulate namesakes. But from today, the white-tails in North Dakota (and some other states) can expect to endure the fire of hunters until at least January 1st 2024, when the season closes. It looks like the private jet industry – on both sides of the Atlantic – will have to endure attacks from environmental protestors for much longer than that.

Above: White-tailed deer are now  in the firing line in North Dakota.

Top: So, too are private jets. This was pictured at EBACE 2023.

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