AIC and DUAL launch European aircraft title insurance
AIC Title has launched a partnership with UK insurance company DUAL Asset Underwriting to offer European aircraft title insurance.
The new product will help owners and financiers insure aircraft against forged aircraft registrations, liens from maintenance companies, tax authorities, financial institutions and other claimants, against others claiming ownership and other title issues.
Title insurance is relatively common for US aircraft transactions but has not been available for internationally registered aircraft.
“European title insurance has been a dream of mine for years,” said Clayton Healey, owner of AIC Title. We are delighted to be working with DUAL.”
AIC has been the agent for title insurance in the US for AvSure Inc since 2012 and has provided more than $4 billion in coverage. When it launched, several companies offered the product but AvSure is now the only insurance company regularly underwriting aircraft-title risks.
AvSure is reinsured by Hanover Re, Swiss Re and Fidelis in London. Fidelis is the majority owner of DUAL. DUAL is the largest provider of title insurance outside the US. It worked on deals in 32 different countries in 2017.
“We are always looking for new areas where we can help people manage risk and are delighted to be working with AIC on bringing aircraft title insurance to Europe,” says Andrew Hillier, executive chairman of DUAL Asset Underwriting.
US title insurance typically costs about $1,000 for each $1 million of an aircraft’s value. It is arranged with a single payment that covers the period in which an owner or financier owns or finances the aircraft – rather than being a yearly policy.
“As a former litigator, I can tell you that the cost of defending an adverse claim – even if you think you have a slam-dunk case – will cost a lot more than the cost of the title insurance,” says Bruce Marshall, general counsel of AIC Title. “I can prove this: we have spent more than $300,000 to defend a single claim – which we eventually won. Litigation is costly.”
Healey is keen to educate Europeans on the benefits of the product. “If you are taking a new aircraft from an OEM, you do not need title insurance. But if only one person has owned the aircraft before you, you should definitely buy it. It is cheap for the peace of mind you get.”