A team of pilots, working with entrepreneurs and insurance specialists, has formed a new aviation insurance underwriter, 5X5, that will work directly with customers to provide tailored coverage. Saying its direct-to-customer coverage will be data-driven, the company plans to offer a range of services for the high-end owner-flown aircraft market.
Thus far, the company has received authorization to provide full coverage in five states—Arizona, Delaware, Georgia, Illinois, and Virginia—but intends to expand to the lower 48 contiguous states as regulators approve. 5X5 will update progress on the expansion on its website.
The insurance model is designed to offer customization and choice, according to the company, providing multiple liability and hull coverages with policies and premiums based on each record and requirements. In addition, it will work directly with the end user, rather than offering its products through brokers.
Plans call to offer safety awards in recognition of regular training, membership in an owners and pilots association, frequent flying, and hangaring and maintaining of aircraft. Owners and pilots who share flight data will earn bigger discounts. 5X5 will collect that data to help customers improve skills and reduce premium costs. This data will remain confidential, it added.
5X5 developed an instant estimate tool to enable applicants to get a ballpark figure, with detailed quotes provided in 10 minutes for potential customers, either online or through agents by phone. The tool initially focuses on a specific sector: high-performance light jets and turboprops like the Cessna Citation, TBM, Piper M-series, Beechcraft King Air, and others, as well as modern in-production piston singles and twins from Cirrus, Diamond, and Cessna. 5X5 expects the list of makes and models to grow over time.
“By providing underwriting services directly to customers, we are able to make decisions immediately and provide customers with choices on the coverage that best meets their needs,” said CEO and founder Troy Kopischke, who said he saw a need for something better during flight training. “No more one size fits all. No more arbitrary age cutoffs. No inability to transition.”