On Nov 21, 7:47*pm, Bob Kuykendall wrote:
On Nov 21, 4:20*pm, Bruce Hoult wrote:

I would think a unit could be reasonably expected to work
for 10 - 15 years, so it's $200k to $300k per life saved.

If the economics are so compelling, the insurance companies ought to
be the ones pushing for it. What says Costello?

This is response by Costello to Phil Umphries on this question.
FYI - UH

FM: COSTELLO INSURANCE

TO: SSA

ATTN: PHIL UMPHRES, SSA CHAIRMAN

CC: DAVID VOLKMANN, SSA INSURANCE SPECIALISTS
Hi!

Our office sometimes audits the various blogs pertaining to Soaring.
It helps us stay abreast of our clients’ needs. Recently, we noticed
comments pertaining to the use of FLARM to enhance mid air collision
avoidance. Some of the threads suggest the insurance company for the
SSA’s insurance plan be asked to offer premium credits to those who
purchase collision avoidance equipment. Also, this date I have
received an email request from the U S distributor for FLARM to
solicit the company for credits. I’m contacting you to let you know
I’ve already had discussions with the company in anticipation of this
very request.

The company believes:

Anything to enhance collision avoidance is great.
However, loss statistics for the SSA Group Insurance Program indicates
mid airs, though sometimes tragic, are truly infrequent and thus
inconsequential to the insurance carrier from a claim payment point of
view. They would have no reason to offer a credit as they don’t
consider it a significant loss payment problem.
The SSA’s insurance administrator has already negotiated premium
credits for being claims free that top out at a significant 25%. SSA
members employing whatever they can to remain claims free are already
enjoying these credits.

In short, the positives and negatives of FLARM aside, the insurance
company will not underwrite a glider owner’s purchase of FLARM or any
other collision avoidance device with premium discounts beyond what
they are already providing.

Here are some stats.

2010 2 mid airs thus far.

In 2008 1 mid air claim.

In 2007 1 mid air claim.

In 2006 1 mid air claim.

In 2005 no mid air claims.

The program did not have the mid air involving Mr. O’Callaghan.

Historically, mid airs represent less than 1% of the program’s
claims.

If you are approached this information should assist you in explaining
why the insurance company will not offer additional credits for the
installation of FLARM.

Best regards,

Pat

Pat Costello