By Bill Soldan, founder and president, Aero AllianceInsurance Services

As an aviation insurance broker with more than 25 years ofserving this specialized industry, I've served as an aviationresource manager at both boutique and international firms. Andalthough the economy has caused a lot of hardship in the industry,it's a still a great specialty. In fact, your current clients mighteven be pilots or may already have some type of aviationexposure.

There are a number of underwriting companies that serve theaviation industry, including Chartis, Global Aerospace, UnitedStates Aviation Underwriters, Allianz, Starr Aviation, Phoenix Aviation Managers, QBE and others.During the past several years, our industry has grownsubstantially, with new underwriting companies entering the market,so capacity is plentiful and competition is fierce.

Read related: “Airline & Aviation Insurance Market Turns a Profit in2011.”

Before you can work in this market, most aviation underwriterswill require an agency to complete an application to determine ifthey want to appoint you. Most aviation underwriting companies wantthe agency to have someone with aviation expertise because mostclients look for advisors that speak our language.

I've tried to work with non-aviation producers who learn of anaviation underwriting company and immediately contact them to tryand write this new business direct, so they can earn 100 percent ofthe commission. Underwriters usually decline due to the agency'sinexperience and the increased E&O exposure. Even if the agencyhas a contract with the company and is successful in getting abroker of record letter, underwriters know the chances are high theproducer will lose the account because they don't speak thelanguage or understand the policy—they lack responsive expertise.

Here are some tips on how to access the aviation market:

1. Know the market. Aviation is served bythousands of people and companies, which includes:

• Aviation products manufacturers
• Airports and fixed base operations (FBO)
• Aircraft non-owned liability
• Flight schools
• Private and corporate aircraft (Part 91)
• Airlines (Part 121)
• Cargo airlines
• Aircraft charter operations (Part 135)
• Helicopters
• Agriculture aviation
• Air ambulance/hospital aviation risks
• Satellite/space business
• Blimps
• Banks that finance aircraft

2. Understand the risk. Although writing aclient's aviation business is another source of revenue and newpride for the producer, it's important that you understand thataviation is catastrophic by nature, which will expose you topotential E&O claims. Each of the above operations has itsown unique risks, which must be fully understood by both the agentand the aviation underwriter to properly cover the insured in theevent of a catastrophic loss.

Read related: “Air France Accident Report May Impact Underwriting; NotRates.”

3. Join an organization. Agencies can join anumber of organizations that represent the aviation industry,including the National BusinessAircraft Association (NBAA), Helicopters Association International(HAI) and Aircraft Owners andPilots Association (AOPA). As a member, theseorganizations will provide you with directories listing allmembers. These organizations have several conventionsthroughout the year, attended by thousands of people in ourindustry from around the world. The aviation insuranceindustry is well represented by brokers and underwriters withbooths at these conferences.

4. Work with an expert. Agencies looking to getinto this business can hire an experienced aviation broker oraviation underwriter that maintains a good reputation in ourbusiness. My firm has worked with other agencies to assist them inwriting new aviation business, including an international airportand several corporate jet aircraft. Alternatively, the agency couldconsider co-broking this business with an aviation insurance firmthat can serve the client's interests.