For over thirty years I owned and operated my own aviation insurance agency, and one of the companies I represented was AIG Aviation. AIG Aviation came into existence after AIG had provided a "front" company for Southeastern Aviation Underwriters (SEAU), an old line specialty aviation insurer. SEAU carved a niche out of the aviation insurance market by insuring risks which were sub-standard, allowing them to demand higher premiums and to generate consistent profits over the years.
When AIG began to expand its operations beyond its traditional base of construction bonds it acquired SEAU and, over time, became more of a traditional line aviation risk insurer. Soon AIG Aviation was providing coverage for everything from small, personal aircraft like J-3 Cubs to Gulfstream IV corporate jets, and everything in between. It also continued to insure risk that fell outside of the mainstream, and one of the risks they helped me insure was Blackwater Aviation. Early on Blackwater Aviation was operating helicopters in Iraq and Afghanistan which my company insured.
So, what now? Well, AIG has assets worth more than a Trillion Dollars, and for $ 85 Billion the U.S. Government now owns 80% of AIG. What does this mean for aviation policyholders? Investors apparently haven't been convinced that this investment by the U.S. Government is going to solve this problem, so if you have an aviation insurance policy you might want to call your agent and discuss whether or not you should change carriers.
While you are at it, if your agent hasn't contacted you about where AIG Aviation is today, and the impact it will have on your risk, then you need to find another insurance agent. As agents our responsibility is more than just selling you an aircraft or airport insurance policy, agents also have the duty to inform you of anything which might impact your insurance coverage. If your agent isn't talking to you about this problem, then I would recommend changing agents.
Until next time keep your wings straight and level Hersch!
For once you have tasted flight
you will walk the earth
with your eyes turned skywards,
for there you have been
and there you will long to return. -- Leonardo da Vinci