Your Class 1 medical gets revoked tomorrow. Cardiac issue. No warning. The doctor hands you paperwork, and suddenly that loss of licence policy you bought three years ago becomes the only thing standing between your family and financial disaster.
Now ask yourself: can that insurer actually pay?
The cases I handle tell me most pilots never consider this question until it’s too late. They compare premiums. They tick boxes. What they don’t do is check whether their insurer has the financial muscle to honour a six-figure claim when the aviation market is bleeding red ink. This matters. Particularly now.
Insurer strength in 30 seconds:
- Financial strength ratings predict whether your insurer can pay claims during market stress
- AM Best is the primary rating agency for aviation insurance—check A- or above
- UK protection schemes cover only 90% of general insurance claims if your insurer fails
- A well-capitalised insurer processes claims in roughly 90 days; a struggling one may take 6 months or longer
In my work with pilots across Europe, I regularly encounter professionals who selected their loss of licence insurance purely on premium cost. When claims arise during periods of insurer financial stress, I have observed delays stretching to 12 months. This pattern is consistent enough to warrant serious attention.
What follows is everything you need to understand before signing your next policy—or checking the one you already have.
What this guide covers
Why Your Insurer’s Bank Balance Matters More Than Your Premium
Here’s what most pilots get wrong: they assume regulation equals protection. Every insurer operating in the UK must meet capital requirements. The Prudential Regulation Authority watches them. So everything is safe, right?
Not quite.
The gap in regulatory protection: If your UK insurer fails, the Financial Services Compensation Scheme covers 90% of your general insurance claim—not 100%. For a £300,000 loss of licence payout, that’s £30,000 coming out of your pocket. And that assumes your insurer is UK-regulated in the first place.
As confirmed by the Bank of England, protection limits apply to firms that fail—meaning you’re relying on your insurer not to reach that point. The scheme exists as a backstop, not a guarantee. This is precisely why financial strength ratings matter before you buy, not after.
When ratings mattered: Marcus’s claim experience
I assisted Marcus in 2024—a long-haul captain with 12 years’ seniority at a European carrier. Sudden cardiac diagnosis. Permanent grounding. His insurer held a B+ rating and was under regulatory watch at the time.
Typical claim processing for a well-capitalised insurer: around 90 days from submission to payout. Marcus waited nine months. The money came eventually, but those extra six months meant remortgaging his home and borrowing from family. His policy was valid. His insurer simply lacked the operational capacity to process claims efficiently while managing their own financial stress.
The difference between an A-rated and a B-rated insurer isn’t abstract. It’s the difference between your family managing a difficult transition and your family managing a crisis within a crisis.
468%
Central solvency ratio maintained by Lloyd’s market, well above regulatory minimums
Lloyd’s 2025 market report shows exactly why capitalisation matters: even with aviation lines reporting a combined ratio of 104.3%—meaning they paid out more than they collected—the market’s 468% solvency ratio provides substantial buffer. Strong insurers absorb bad years. Weak ones struggle to pay claims.
Decoding the Alphabet: AM Best, S&P, and What Pilots Need to Know
Three rating agencies dominate the insurance world: AM Best, Standard & Poor’s, and Moody’s. For pilots, one matters more than the others.
AM Best focuses exclusively on insurance. They’ve rated insurers since 1899, and their methodology centres on claims-paying ability—exactly what concerns you when your medical certificate disappears. S&P and Moody’s rate insurers alongside banks, governments, and corporations. Their analysis is excellent but broader.
When advising clients, I observe a consistent pattern: pilots who check their insurer’s AM Best rating before signing report greater confidence in their coverage. Those who discover their insurer’s rating only after a claim often wish they had asked earlier.
Comparative data compiled January 2026.
| Agency | Insurance Focus | Aviation Relevance | What to Check |
|---|---|---|---|
| AM Best | Exclusive | Primary standard | Financial Strength Rating (FSR) |
| Standard & Poor’s | Partial | Secondary reference | Insurer Financial Strength Rating |
| Moody’s | Partial | Less common | Insurance Financial Strength Rating |
According to AM Best’s official rating guide, their Financial Strength Ratings assess an insurer’s ability to meet ongoing insurance obligations. The scale runs from A++ (Superior) through A+ and A (both strong) down to B and below. Their exact language: ratings of A++ are « assigned to insurance companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations. »
The aviation minimum: Frankly, I would never recommend a pilot trust their career-ending claim to an insurer rated below A-. The premium difference between an A-rated and a B-rated insurer is typically marginal—perhaps 10-15%—while the difference in claims-paying ability during market stress can be substantial. Professional pilot associations often set A- as their minimum threshold for recommended insurers, and there’s a reason for that.
Quality aviation insurance companies typically partner with globally established insurers holding strong ratings—precisely because the aviation market demands that security. When your policy is backed by an insurer with decades of claims-paying history and capitalisation well above regulatory minimums, your claim becomes a processing exercise rather than a negotiation.
How to Check an Aviation Insurer Before You Sign
Knowing that ratings matter is one thing. Knowing how to verify them takes five minutes—if you know where to look.
The most common mistake I encounter? Pilots accepting broker assurances without verification. « They’re fully regulated » tells you nothing about financial strength. Regulated insurers can still struggle. Regulated insurers have failed. What you need is the actual rating from the actual agency.
On the ground, the reality is simpler than pilots expect. AM Best publishes ratings freely on their website. You search the insurer’s name, you see the rating, you know where you stand. Takes two minutes.
Before you sign: your 5-point insurer verification
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Identify the actual insurer (not the broker) named on your policy documents
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Check their AM Best Financial Strength Rating at ambest.com—look for A- or above
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Verify the rating is current (within the past 12 months)
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Ask your broker about reinsurance arrangements backing your policy
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Confirm whether UK FSCS protection applies if the insurer is domiciled overseas
Practical tip: If your broker hesitates to provide the insurer’s current rating, that’s information in itself. Reputable brokers working with strong insurers lead with financial strength as a selling point. Silence on this topic usually means there’s nothing impressive to say.
Timeline matters too. My observation from handling claims: Day 0 your medical certificate is revoked. Day 7 you submit your claim. With an A-rated insurer, expect acknowledgement around Day 30, medical review complete by Day 60, payout by Day 90. With a B-rated or lower insurer—particularly one under stress—Day 30 becomes Day 90, and Day 90 stretches past Day 180. That’s the difference between three months and six months of financial uncertainty while you’re already dealing with a medical crisis.
Your Questions About Aviation Insurer Ratings
Your questions about aviation insurer ratings
What does A++ actually mean for my claim?
AM Best assigns A++ (Superior) to insurers demonstrating the strongest ability to meet ongoing insurance obligations. In practical terms: these insurers maintain capital reserves substantially above regulatory requirements, have consistent claims-paying history, and can absorb market downturns without operational disruption. Your claim gets processed, not delayed.
Is a B-rated insurer unsafe?
Not necessarily unsafe, but higher risk. B-rated insurers meet minimum regulatory requirements—they’re legal, they’re supervised. However, they have less buffer against adverse conditions. If the aviation market experiences heavy losses (as it did recently), a B-rated insurer may prioritise survival over speedy claims processing. For a £200,000+ loss of licence claim, that risk feels different than it does for car insurance.
Can ratings change after I buy my policy?
Yes. Rating agencies conduct ongoing reviews, and insurers can be upgraded or downgraded based on financial performance, market conditions, or strategic changes. This is why checking annually makes sense—particularly at renewal time. A policy bought when your insurer held A+ may look different if they’ve since dropped to B+.
Why do some pilots pay less for worse-rated insurers?
Weaker insurers sometimes compete on price because they cannot compete on reputation. Lower capital reserves mean lower costs, which translate to lower premiums. The trade-off is claim security. In my experience, the premium difference between strong and marginal insurers rarely exceeds 15%—a small percentage of your annual premium that buys substantial peace of mind.
Your Next Move
Financial strength isn’t glamorous. It doesn’t feature in insurance adverts. But when you’re sitting in a cardiologist’s office hearing news that ends your flying career, the only question that matters is whether your insurer can write the cheque.
Check your current policy tonight. Find the insurer’s name. Search their AM Best rating. If it’s A- or above, you’re in reasonable shape. If it’s below, or if you can’t find a rating at all, that’s a conversation to have with your broker before your next renewal.
The premium difference between adequate and excellent is smaller than most pilots assume. The peace of mind isn’t.
Important considerations when evaluating insurers:
- Financial ratings can change; always verify current ratings before purchasing or renewing
- This guide provides general education, not advice for your specific circumstances
- Regulatory requirements vary by jurisdiction and policy type
- Risk of insurer downgrade after policy purchase may affect claim security
- Policy wording exclusions matter regardless of insurer financial strength
For decisions about your specific coverage needs, consult an FCA-regulated insurance broker specialising in aviation.