Also Tweaking Insurance Plans For Light Sport Aircraft
Avemco Insurance Company President Jim Lauerman announced last
week the company will soon offer new specialty insurance for
certified flight instructors (CFIs.)
Avemco CFI will provide coverage for CFIs, not affiliated with
flight school or FBO training programs, who wish to conduct flight
training in their own aircraft. The policy will allow instruction
of named pilots and will enable CFIs to have access to more
affordable insurance than is currently available. It is designed
for aircraft owners who are also instructors but whose instructing
is incidental to their aircraft ownership.
"We all know that statistics for general aviation student starts
and hours flown continue to be at extremely low levels. We believe
one of the primary contributors to these low levels is the lack of
experienced flight instructors. There are many CFIs out there who
want to instruct but can't afford the insurance that's available
now for FBO and flight school training programs. Avemco CFI is
designed to address what CFIs who own their own aircraft have been
asking us for -- customized liability coverage that's affordable
and accessible so they can financially justify instructing in their
own airplanes," Lauerman said.
"Being a direct underwriter, Avemco is uniquely positioned to
offer this new product for CFIs -- an instructor can call us and
add a student to his policy and then be instructing that student
the same day. It's our intention to maximize our direct business
model to make it easier for all our customers to fly more including
instructors who want to teach more. General aviation will gain more
experienced flight instructors and, hopefully, we will all see more
pilots as a result," Lauerman said.
Avemco CFI will be available beginning by this year's AirVenture
in Oshkosh, WI and joins the company's specialty product line that
also includes offerings for light sport aircraft (LSAs),
technically advanced aircraft (TAAs), homebuilts, and non-owned
aircraft liability coverage. Hangar coverage and life insurance for
pilots are also available through Avemco Insurance Agency.
Lauerman also announced Avemco is conducting an in-depth
analysis of its light sport aircraft (LSA) underwriting standards,
and is fine-tuning them to differentiate more effectively among
various models. Dealer training, especially for transitioning
pilots, parts availability and maintenance support are all critical
factors in Avemco's LSA insurance underwriting and rate levels.
Avemco is also visiting LSA manufacturing and dealer facilities to
conduct this analysis and get a first-hand informational
review.
"We are currently working closely with many LSA manufacturers
and the Light Sport Aircraft Manufacturers Association (LAMA) to
review and identify those LSAs that are being manufactured and sold
with emphasis on increased initial instruction especially for
pilots transitioning from traditional heavier GA aircraft. We've
found that the light wing-loading of LSA's requires a greater
emphasis on low speed directional control," Lauerman said. He noted
that some LSA manufacturers have also identified this need and are
already addressing it through increased time-in-type training for
new owners. "Avemco will be adjusting its underwriting requirements
for those models that meet or fall short of the additional training
or that don't have the necessary parts and maintenance
availability," Lauerman said.
Last summer, Avemco announced a rate reduction for TAAs
including all Cirrus and Columbia models as well as Diamond's DA-42
Twin Star and select homebuilt aircraft. Avemco also broadened its
coverage for pilots transitioning into newer high performance
aircraft across all make and model categories. In addition, higher
liability limits up to a one million combined single limit were
made available to qualified aircraft and customers and higher
property damage limits were made available to many homebuilt model
owners.
These changes are on top of Avemco's recent broadening of
liability coverage for bodily injury to family members of an
insured pilot who are injured in a covered loss.