I'd like to see AOPA lobby the Federal Trade Commission (FTC) for an investigation into the Aviation Insurance industry to determine if price fixing and collusion is occurring. With large price increases and very few competitors, it would appear this may likely be occurring. I realize AOPA does itself generate income from selling aviation insurance, and therefore may be reluctant to push for action in an area contrary to its own financial interests. However, I hope that will not outweigh the larger duty to serve the broader membership in this important govt. advocacy role. Nearly every AOPA member is being impacted by insurance costs. Thoughts?
It's not collusion, just basic finance you learn in an MBA program (and they have a lot of MBA's on their staffs). They all see the same accident experience, use the same actuarial data, reinvest in the same financial markets, and reinsure with the same sources. Combine a couple of huge wrecks (737 Max's) that sap the industry's reserves with a falling market, and everybody"s rates go up.
You are attacking the wrong target. It is the families of those lost in accidents that persist in sung the airframe manufacturer, the engine manufacturer, the last shop that worked on the plane, the pilot's instructor, the FAA....the list goes on and on. I can understand their desire for compensation, and the money has to come from somewhere.....what remedy would you suggest?