Avemco Insurance Co. is dropping its rates.
The rate decrease, unusual these days, was announced at Sun ‘n Fun.
“We’re constantly evaluating the market and our analysis usually says we have to raise rates,” said Jim Lauerman, executive vice president. “But every once in a great while it tell us to lower our premiums. It is a pleasant experience to say this is one of those times.”
Rates have been reduced for all Cirrus models and on Diamond’s DA-42. SR-22 owners will see about a 10% drop in premiums, while SR-20 and DA-42 owners will see a 30% drop.
“Avemco has been insuring these aircraft since they hit the market,” Lauerman said. “But it’s hard to come up with a rate when you have no history.”That’s why those planes were put in a conservative category — meaning higher premiums — and the numbers were “watched over time,” he said.
In conjunction with the rate decreases, Avemco also has relaxed its requirements for pilots, which should enable more pilots to get into aircraft earlier in their careers.
As part of its ongoing efforts to make flying safer, Avemco is investing in a multi-year study, called the Airmanship Education Research Initiative, which is designed to study insurance data to determine who the superior pilots are, then see if there is a way to “transfer the experience of the superior pilots to the rest of us,” said Lauerman, who is a 4,500-hour pilot. “What is it about their thought processes that make them superior pilots?” he asked. “Our ultimate goal is a break through in training.”
Studying insurance statistics is revealing, according to Lauerman. “If you look at all the accidents over the last several years, there is a mind-numbing consistency to the way we wreck airplanes,” he said. “The current paradigm of training is failing to address some issues, specifically some character and attitudinal issues.”
Lauerman hopes other insurance companies will join in the study, which is being spearheaded by Bill Rhodes of Aerworthy Consulting.
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