Menger Underwriting Services LLC was established in 1999. Our purpose is to provide access to higher limits of liability for those insureds that are not able to obtain adequate limits through their primary insurance company. It is generally more efficient for Menger to arrange a facility to provide this higher limit than it is for each carrier to arrange special reinsurance provisions for these limits in their treaties.

The owners of general aviation aircraft have a history of not being able to find adequate limits of liability coverage. In comparison to other casualty insurance lines, the aviation insurance market is quite small. This makes it difficult for insurance carriers to show positive underwriting results on a consistent basis should they incur large liability claims.

Due to the small number of units available to insure, the total premium volume is not generally sufficient to pay catastrophic claims that general aviation aircraft can cause. Since the total liability premium volume for these increased limits are spread over several companies, this makes it even more difficult for any one carrier to achieve positive underwriting results.

When carriers experience poor loss results on these higher limit policies, the normal reaction is to stop offering the limits at any premium. This is generally not acceptable for aircraft owners that require the coverage.

The premise behind Menger is that we can develop enough premium that is correctly underwritten and adequately priced to generate an underwriting profit. The pricing logic that is used by Menger has no relationship to what primary carriers generally charge. The pricing is based on the examination of the potential for loss and the premium is charged accordingly. The elements used in pricing a risk are, the Maximum Possible Loss, which is the policy total limit, and the Maximum Probable Loss, which is determined by calculating the average settlement of all losses based on the seating capacity of the aircraft. Once we have determined the maximum probable loss, we compare it to the underlying primary policy. If the primary policy has low limits, more of the probable loss is at risk (A two seat aircraft has a lower probable loss than a six seat aircraft.)

Menger Underwriting Services LLC is not intended to be a source to find inexpensive higher limits. Frequently our excess limits exceed the premium paid for the underlying liability coverage. Our purpose is to provide higher limits of liability available to clients that cannot obtain them from their primary carrier. In order to accomplish this goal, the policies must be underwritten and priced correctly to achieve this end result.

We do not collect any data other than that which is sufficient for us to issue a policy.

We have no interest in competing for business that can be obtained from primary markets as Menger has been created to supplement the aviation insurance market place.