Avemco Insurance Co. has lowered its rates and broadened its coverage on models ranging from technically advanced aircraft to homebuilts.
Rates have been reduced for all Cirrus and Columbia models, as well as Diamond’s DA-42 Twin Star and select homebuilt aircraft, according to Jim Lauerman, Avemco’s chief underwriting officer. “We’ve made several moves to ensure that insurance is more affordable and available,” he said during last month’s AirVenture.
Avemco also is broadening its coverage for pilots transitioning into newer high performance aircraft across all make and model categories. In addition, higher liability limits, up to $1 million, are being made available to qualified customers and higher property damage limits will be made available to many homebuilt owners. “This is coverage a lot of our customers felt they needed,” he said.
The rate decrease came about after data showed that the insurance company had been “overly cautious” in insuring some of the new models of airplanes. “We are constantly monitoring our underwriting results to ensure that we are charging a rate that is adequate to promptly pay for all covered claims and also provide the best possible long term return on our stockholders’ investment,” Lauerman said. “While inflation usually means that those rates need to increase, sometimes the analysis indicates that we no longer have to be as conservative in some of our assumptions. This is one of those times.”
Avemco officials also noted the company is “LSA ready.”
“We’ve been waiting for over a year for a heavy hitter to get into the market,” Lauerman said, referring to Cessna’s new SkyCatcher. “This is a natural market for Avemco.”
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