Understanding that repair stations bore no responsibility for the increased market rates, ARSA researched alternatives to the then-limited aviation insurance market. This led to retraining Polaris Enterprise Group, Inc, Saint Helena, CA, experts in insurance alternatives, to explore the feasibility of forming an insurance company that would specifically provide aircraft product liability insurance for ARSA members. 

AAIRRG obtained its insurance license from the State of Montana on June 18, 2010, and began the process of quickly registering 22 states. In nine short months AAIRRG enrolled its 50th member, Wheeling, IL’s, Aircraft Propeller Service, Inc., specialists in the repair and overhaul of Hamilton Sundstrand composite propellers.  

This accomplishment is all the more impressive considering that the aviation insurance market has rapidly been cutting prices for repair stations since the fourth quarter of 2010 perhaps a begrudging tribute to AAIRRG’s presence in the marketplace.  

Aviation in the United States is the second most profitable line of liability insurance just after surety (principally, performance and completing bonds). All other liability lines would be delighted with an 80% loss ratio (percentage of dollars paid out in claims from premiums paid) whereas aviation has averaged in the mid 50% range for the past twenty plus years. That’s thirty points more profit than the average!