Avemco Investigates LSA; Continues Insurance

bydanjohnson

Sunday, June 01, 2008 at 12:21 PM ET

Verified

Key Takeaways:

Insurance companies, particularly Avemco, hold significant sway in the aviation industry, being essential for operations, and Avemco's president is actively engaged in understanding the Light Sport Aircraft (LSA) market.
Avemco advises LSA producers on key areas to help contain insurance premiums, including solving design issues, improving pilot transition training, ensuring repair infrastructure and parts availability, and properly valuing aircraft.
Avemco is committed to remaining a key insurer in the LSA market, driven by its direct-to-pilot approach and thorough engagement with industry leaders.

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**Avemco advises** LSA producers could help contain insurance premiums by… ***solving*** any design issues; ***doing*** better transition training of pilots not used to light wing loading; ***getting*** more shops ready to do repairs and assuring replacement parts are available; and, ***working*** with aviation experts to properly value used aircraft and those in salvage operations. Similar tasks are required for all new aviation market segments.

Does FAA control aviation? They regulate it (sometimes well). True control may be in the hands of insurance companies. Just try to operate your airplane, your airport, your aviation business without insurance coverage. Insurance companies help keep airports open and protect our investment in airplanes when we occasionally land a bit hard. *** One company addresses market needs differently. Avemco sells directly to pilots, not through middlemen. This may explain why Avemco is one of the country’s largest airplane insurers. *** Their top man, Avemco President Jim Lauerman, has been out doing his homework on LSA. In our conversation at Sebring 2008, Jim told me about all the LSA leaders he spoke to at the event. Following Sebring he went quite a few extra miles and paid in-person visits to AMD, American Legend, and IndUS Aviation. *** Since Lauerman is personally willing to look carefully at LSA, industry players are likely to heed his advice out of respect for his interest and thoroughness. The best news: Avemco fully intends to remain in the LSA insurance market. (See photo caption for Avemco’s advice.)