The insurance company makes an objective assessment of the probabilities of having to pay out, puts a price and margin on that risk, and off Dick goes in his JetRanger and insurance cover. That’s a commercially-driven decision, not a safety decision.
Dick’s point is that CASA makes equivalent decisions, but pretends they are determined by safety considerations.
For example, there is no safety basis for the classification of operations. Passengers boarding a charter flight on a 9 seat piston aircraft and passengers boarding an RPT flight on a twin jet have no idea about the absolute and comparative probabilities of each aircraft being involved in a fatal accident. Amazingly, if the passengers on the first aircraft happen to be a patient being medevacd, and her husband, the flight is acceptably ‘safe’ at aerial work standards, but not acceptably ‘safe’ if they are just ‘plain old passengers’.
The classification of operations scheme results in some people being less safe than others, based on cost and practical considerations. “Cost and practical considerations” is long-hand for “politics”.