Helicopter insurance costs have skyrocketed in recent years, forcing owners and operators of helicopters to either cancel their insurance or reconsider the aerial services they offer.

Warwick Curr, the managing director of Alice Springs Helicopters, said insurance costs have increased by nearly 60% this year. As a result, he made the “uncomfortable decision” to cancel coverage for four of his seven helicopters.

“In good years, it probably would’ve been something I would have worn, but with COVID this year, our workload is as low as it has ever been,” Curr said, as reported by abc.net.au.

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Significant changes in the aviation insurance market seem to be the culprit for skyrocketing insurance costs as insurers try to recoup losses or limit exposure to the sector.

Ian Tait, the managing director of Aviation Insurance Australia, said premiums have been at historic lows for the past five years, but “the bubble has finally burst.”

“Underwriters are trying to recoup their losses and walk a fine line between getting back into profitability without hurting the helicopter operator or owner,” Tait said.

Curr predicts that insurance costs will not go down in the future, which could force many helicopter operators to reassess their business models.

“As an industry, we haven’t been particularly successful in offsetting these costs against revenue – prices have always stayed pretty flat – and I guess that’s what’s hurting people now,” he said.