Welcome to AAIRRG. The only insurance company that exclusively writes aircraft product insurance for certified Part 145 repair stations and their related activities.
We are delighted to have you visit us. We are member-owned and, as of
May 1, 2015, AAIRRG is owned and controlled by 223 of the independent repair stations in
46 states. Some are leaders in our industry.
Believe me, few of us wanted to own an insurance company. But because of the outrageous prices we were paying for aircraft products liability insurance (products coverage), our hand was forced.
I'll tell you how we did it in a moment. But first, let me give you the bottom line of what it means for you.
- You should save (some up to 35% or more) on your company's liability insurance.
- If you're insured by AAIRRG, you'll own a piece of the company and share in the profits.
- You'll have access to a viable insurance option for the foreseeable future.
I know you'll have questions. So take a few minutes to read on, and then if you feel that AAIRRG might be a good fit for your repair station, you can request a free pricing proposal.
An Eye-Opening Analysis
In 2004, a core group of Aeronautical Repair Station Association (ARSA) members agreed to contribute time and money to test whether there might be a better alternative to the costly insurance options available at the time.
These members launched a feasibility study, examining 18 years of NTSB data. The study found that only 1.3% percent of U.S. aircraft crashes resulting in bodily injury or third-party property damage were a result of maintenance. Only 1.3%!
With this information in hand, the group approached reinsurers to try to find support for the idea of a more affordable, exclusive aviation repair station insurance option.
The Problem: We Were Unfairly Lumped With Higher-Risk Ventures
Reinsurers were not unwelcoming, but there was a problem: they were unable to address specific losses surrounding repair stations because of their categorization of us as a miscellaneous class of business.
Who else is included in this category? Air shows, speed events, medical air evacuation, aerial construction, firefighting, crop dusting, flight training and other higher-risk ventures. Our research showed that repair stations were (and many still are) being forced to pay higher premiums to subsidize these high-risk businesses in aviation insurance markets. We needed a better option.
A Better Alternative
We spent six years putting AAIRRG together, isolating it from other aviation insurance markets so that we could offer better rates. In June 2010, we received our certificate of authority, authorizing us as a licensed insurance company. Now, in our fifth year of operation, we've become a substantial presence in the aviation marketplace:
- We're saving repair stations (up to 35% or more)over what they were paying.
- We are providing good small shops who could not previously afford Aviation Products and Completed Operations coverage an opportunity to have coverage at a fair cost compared to the alternatives.
- AAIRRG carries reinsurance with a net worth of $88.1 billion with substantial "A" rated reinsurers to augment its balance sheet.
AAIRRG has standards for eligibility so not just any shop can qualify. Over 41% of the Part 145 market will never hear from us due to other activities they are engage in, and for the remainder, our initial process is rigorous to help insure the financial safety of the group as a whole. Subsequently, for those who qualify, we offer a fair price for an exceptional insurance option.
Any Profits Belong to Us!
If you're insured by AAIRRG, you will own a piece of the company. And while future dividends cannot be guaranteed, let me share the following fact with you:
For the past 30 years, the entire aviation line of business in the U.S. has consistently been the first or second most profitable line of liability insurance, producing a better than 50% pretax profit each year!
Imagine not only saving on your insurance, but also profiting from that savings! No other aviation insurer is paying a dividend to its policyholders. But, as an AAIRRG owner/insured, future profits will come back to you.
I think you'll agree that this is an exciting and sensible option. It's worth taking a few minutes to explore our website to learn more. Then, you can request a quick, easy and free pricing proposal to see just how much your shop can save.
We look forward to welcoming you into the fast-growing AAIRRG family.
Bill Perdue, President
P.S. If you have questions and would like to talk this over with a real person, you can call Rick Crebs, our lead underwriter, at 707-963-2400 right now.