October 2009 - Travelers Aviation To Withdraw From Aviation Insurance marketplace

Effective October 13, 2009 insurance giant Travelers is initiating its departure from the aviation sector of the insurance market. They will continue operate under the following guidelines during the transition:

1) Travelers Aviation will honor its current policies through their policy expiration and provide claims service as needed on those policies. 2) They will no longer quote new business. 3) Travelers Aviation will honor current quotes through December 31, 2009. 4) Policyholders with effective dates starting January 1, 2010 will be receiving letters of non-renewal from the carrier prior to expiration.

This change is not indicative of Travelers ability to pay claims; they are still financially strong and an "A" rated carrier. It was simply a business decision for them not to further pursue aviation business. This news is one indicator that the the aviation insurance marketplace may soon change. More than three years of fierce competition has generated artificially low insurance rates in many sectors of the aviation marketplace. This has put the market in a situation that can not be sustained. Other carriers may follow in the coming months and rates will eventually start to rise.

Travelers Aviation book of business consisted primarily of turbine aircraft operators. PIM Aviation Insurance will canvas the rest of the market to find Travelers Aviation policyholders a new carrier as policies expire. There are a number of carriers eager to compete for this business. If you have any questions please contact your PIM agent.

Travelers still has a separate insurance program for Property, Contents, Inland Marine, and Business Auto policies for aviation operators through the National Hangar Insurance Program. This program will remain unchanged.