Direct Writers and AVEMCO
The 3rd and 4th quarters of 2025 are witnessing disruption in the aviation insurance space. Aviation insurance underwriting companies serving the owner/flown and professionally flown turbine segment have, up to now, been accessed only via an aviation insurance broker. AVEMCO is the one noteworthy ‘direct writer’ of aviation insurance—meaning an aircraft owner can call AVEMCO directly to secure a quote. AVEMCO, however, has a limited appetite/capacity and generally only insures aircraft with a hull value of $350k or below. Most owner/flown and professionally flown turbine aircraft are certainly valued above the AVEMCO capacity threshold; therefore, it generally wasn’t an option to insure a turbine aircraft with a direct insurance writer like AVEMCO.
Emerging Direct and Traditional Insurers
As of mid-2025, a new direct insurance writer named 5X5 Aviation Insurance has entered the marketplace. As of this writing, they are only up and running in about 20–25 states. This means there is limited reach for aircraft insurance buyers seeking a quote from 5X5. I would expect that by the end of 2025, 5X5 will likely be serving three-quarters or more of the USA (states).
Adding to the disruption in the aviation insurance market is a new carrier, Class A. Class A is a traditional insurer that is accessed via a broker. Its current focus is solely on owner-flown and professionally flown turbine risks. However, Class A is deploying market-leading 'tech' to evaluate and price risk. Underwriting decisions are utilizing tools such as a customer’s ADSB and real-time flight data to select desirable risks and reward pilots with sharper rates and a broader policy form. As of this writing, Class A operates in 45 states and expects full USA coverage during 4Q2025.
Impact on the Owner/Flown Turbine Segment
The owner/flown turbine segment of the aviation insurance market arguably saw the most significant premium impact during the ‘hard market’ conditions of 2018–2024. With the addition of both Class A, a new traditional insurer, and 5X5, a direct insurer focused squarely on that business segment, we will see pricing softening with the enhanced insurance carrier options. There is no question that Class A’s tech- and data-driven approach, as well as 5X5’s direct-to-consumer business model, will contribute to continued insurance market disruption.