Rising Aircraft Values and Market Dynamics

In our latest episode of What’s Brewing, IAT Aviation Underwriting Manager Michael Puglisi sat down with Holly Hopkinson, aviation broker at McGriff (now part of Marsh McLennan), to discuss how rising aircraft values, repair costs, and shifting market dynamics are reshaping aviation insurance.

Tune into the episode here.

Inflation’s Impact on Insurance

Holly highlighted how inflation is driving costs upward—through pricier materials, labor shortages, long repair lead times, and even tariff concerns. A repair that once cost $100,000 may now be more than double.

“It’s really important to stay in front of it and give [clients] a heads up on what we’re seeing industry-wide,” Holly emphasized.

Capacity, Rates, and Relationships

Increased capacity is pushing rates down after years of hardening. Holly stressed the need to balance premium savings with strong carrier partnerships:

“When the market hardens, these are your friends. You want to make sure that you keep your friends.”

Brokers also look for financially solid carriers to ensure stability for clients.

The Rising Cost of Aircraft

Aircraft values have soared in recent years. Michael pointed out that Cessna 172s, once valued under $100,000, are now selling for half a million dollars or more. Even piston aircraft are exceeding $1 million, while jets and turboprops have also climbed in value.

Holly shared a client example where a SkyCourier’s projected value rose by $1.5 million in less than a year due to market demand. Such rapid changes affect not just insurance coverage, but also budgeting and operational costs.

Why Aviation Insurance?

To wrap up, Holly reflected on why she loves working in aviation insurance: the unique opportunities and experiences it provides. From touring NASA’s zero-gravity astronaut training pool to building lifelong industry relationships, she sees her role as both exciting and rewarding.

"This is the coolest industry. We work hard, but we’re really fortunate," Holly said.

Final Thoughts

Inflation and market shifts are reshaping aviation insurance. But as Holly and Michael emphasized throughout the conversation, relationships remain the constant foundation of the business.

Want to hear more? Soar into the latest episode of What’s Brewing now!