The Binder - Summer 2023

President’s message Gaining Airspeed

division reports

women’s initiative spotlight sybille michÈle rexer

conference highlights Tucson roundup safety report ground handling sms

Gaining Airspeed

chris morin, managing Shareholder, Murray, Morin & Herman, P.A. aia president 2023–2025

Greetings AIA members and fellow aviation insurance professionals. I’m honored to be writing this, my first letter for The Binder, as your new president of the Aviation Insurance Association. I look forward to my continued service to an organization that has given me so much over the past several decades, both personally and professionally.

It’s only fitting to begin by first recognizing the tremendous service of our Immediate Past President, Greg Sterling. We should all take a moment to thank Greg for serving the AIA so faithfully as President over the last two years, and who formally “passed the gavel” to me during the General Session at the annual conference in Tucson. Greg was a formidable presence among the AIA’s leadership and an asset to the Board of Directors.

His knowledge of the industry, enthusiasm, and his steady hand on the controls helped pilot the AIA through turbulent times as we exited the COVID era, setting the AIA up for future growth.

I’m pleased he was able to close his tenure as president with a very successful conference in Tucson in May. On behalf of the AIA, thank you, Greg!

Speaking of Tucson, if you weren’t able to join us, let me be the first to proudly report that over 550 industry professionals descended upon the picturesque JW Marriott Starr Pass Resort & Spa in the mountains of Tucson, Arizona, from May 5–8. The Marriott was a beautiful venue for the AIA but, despite our best efforts, yet another AIA conference hotel experienced a Pilsner shortage at the bar. In our defense, Tucson was hot and dry and Pilsner seemed to be the thirst quencher of choice at the bar, but perhaps it also serves as reminder that the AIA’s reputation of being able to drink a place dry is alive and well!

Despite that beverage crisis, the conference was a success and feedback was incredibly positive, including glowing reviews regarding the content and hours of continuing education, presentations by topnotch industry keynoters, and an abundance of networking opportunities. And of course, who could forget the Pinnacle Award, the AIA’s highest honor, being bestowed on David Sales during our General Session. David has selflessly dedicated countless years of service to the aviation insurance industry and continues to support the AIA with his talents and enthusiasm. Congratulations again, David!

PRESIDENT’S MESSAGE

We ended our time together in Tucson with a closing party at the Pima Air & Space Museum, where guests were able to stroll the grounds of the museum and see military and civilian aircraft that spanned decades of aviation history. Not to worry, a full conference recap — with plenty of photos — begins on page 23 of this issue of The Binder, so be sure to check that out.

As I look ahead to my tenure as President, I’m committed to continuing — and building on — the momentum of the past few years. Our AIA membership base domestically continues to be strong, and our international contingent is growing and making an impact on programs and events

Luke Uithoven was elected Secretary after serving several years as Treasurer and helping to keep the organization on track through challenging years. Taking over the Treasurer position from Luke, I’m pleased to welcome Nicole Wolfe Stout to the Executive Committee. Nicole has served on the Board of Directors for a number of years as a director of the Attorney’s Division and, more recently, as a Director-at-Large. Nicole is active on the Education Committee and spearheads the Women’s Initiative. I’m also eager to serve in a closer capacity with Ian Wrigglesworth as he assumes the role of Vice President. Greg Sterling will continue to serve on the Board for one more year as our Immediate Past President.

coming to a location near you. Education and networking events in the U.S., London and Toronto are already planned with early registration data showing a strong appetite for these offerings. Of course, it takes a team to make these happen. I consider myself very fortunate to be surrounded by the most talented and dedicated volunteer leaders that an organization could ask for. Joining me in the 2023 officer transition on the AIA Board of Directors:

Also in Tucson, elections were held in both the Agent/Broker and Claims Division meetings. I’d like to formally welcome these two members to the AIA Board of Directors.

Kristen Suarez – Director-Elect, Agent/Broker Division: Kristen is the Executive Manager of BWI Aviation Insurance Agency and brings her energy and enthusiasm to everything she does. Kristen is a volunteer on the Education Committee, engages in the AIA’s Women’s

Initiative, and was profiled in a recent issue of The Binder as one of the industry’s rising young professionals. If you missed it, here’s the link to read her story Kristen will shadow current Director David Hampson for the coming year, and then transition to a full director position at the 2024 conference in New Orleans.

Jeff Sheets – Director-Elect, Claims Division: Jeff is Vice President – Regional Claims Manager for Applied Underwriters Aviation. Jeff has over 28 years of claims experience with three organizations, 18 of those years in aviation. Jeff is a pilot and a musician; you may have seen him on stage at this year’s closing party as a proud member of the AIA Band, Smooth Limits. Jeff will shadow current Claims Director, Dave Gourgues, and then move into the director role in New Orleans.

I look forward to working alongside Kristen and Jeff, and all the dedicated volunteers who make the AIA such a successful organization, and one that continues to attract the best and brightest in our industry. Also in Tucson, the Board of Directors voted unanimously to continue the AIA’s partnership with our management company for another five years. Associations International (AI) assumed management of the organization in January 2021 and we have been delighted with their professionalism, commitment to learning the industry, and creativity as the AIA continues to grow and evolve. Executive Director Mary Gratzer, and Membership & Communications Manager Ellie Wnek,

serve the AIA full time but are supported by an entire team at AI, including Kara Eaton in Member Services, Jennifer Mayhugh in Special Events, and Paul Carney and Ben Polk in Finance, just to name a few. It’s been a pleasure getting to know the AI team and, on behalf of the AIA, I can say we are enthusiastically looking forward to many more successful years ahead.

As I conclude my first message as AIA President, I cordially invite you to share your ideas, talents and to consider getting involved with the AIA, if you aren’t already Check out the website and see if a committee interests you. Sign up for an event. Author an insightful article for The Binder. Visit the Board of Directors page and feel free to reach out to me or your division director with ideas for future content, important issues, or educational programs. After all, this is your organization and we want to hear from you to make the AIA even better.

Best regards,

Chris Morin is the managing Shareholder at Murray, Morin & Herman, P.A., with offices in Tampa and Miami, Florida. Chris is Board Certified in Aviation Law by the Florida Bar and has defended aviation matters for over two decades, regularly counseling local, regional and international clients in the defense of aviation accidents and disputed civil matters. He has tried both civil and criminal cases, including numerous bench trials and jury trials. A licensed pilot, Chris has owned and operated several aircraft, the last being an A-36 Bonanza. He assumed the role of AIA President in May 2023.

Demystifying Non-Owned Aircraft Liability Insurance

David Gourgues, Regional Manager, McLarens General Aviation AIA Director, Claims Division

At the recently concluded AIA Conference in Tucson, I had the pleasure of moderating a panel discussion about non-owned aircraft liability insurance. Carson Lyons of AIG and Jeff Sheets of Applied Underwriters Aviation drew upon their years of industry experience to help unpack the many questions surrounding this coverage from the perspective of underwriting and claims.

First, non-owned coverage is liability insurance coverage. Whether a standalone policy, which is sometimes called a renter’s policy, or coverage that is part of an aircraft policy, non-owned coverage is intended to protect the Named Insured from claims by others.

Most policies cover damage to the aircraft and for injuries to third parties such as passengers or persons on the ground. The policy also covers damage to other property. The premium for a standalone policy is relatively inexpensive. If you are a flight school or someone who rents aircraft to others, encouraging customers to obtain non-owned coverage is an easy decision; however, your client needs to understand that there are situations where the renter may not be liable for damage to the aircraft.

Quite often we see flight schools dropping their hull coverage because they think the non-owned policies maintained by students and renters will cover all damage to the aircraft. Unfortunately, this is not the case. A good example of a no-liability mishap would be a bird strike or unexpected weather event.

When renting or borrowing an aircraft, one must ask: What will I be responsible for if something happens? In most cases one only needs to review the aircraft rental agreement to find out. A properly drafted agreement should explain in plain language what will be expected of the renter or borrower and what can be expected by the owner and the owner’s insurer. The problem is that many renters or borrowers purchase a policy before reading the rental agreement. This often leads to insufficient coverage. Both parties to the agreement need to have a clear understanding of what is expected of each before an incident or accident. Transparency is key.

Regarding non-owned policies, one must also understand that you cannot own the aircraft in whole or in part. Some policies state that the non-owned aircraft cannot be provided to you for more than 30 consecutive days

claims division

or reporting grace period. This means that there may be no coverage if you lease an aircraft without the insurer’s knowledge. You must promptly inform the insurer of an exclusive aircraft lease.

When it comes to coverage or protection for injuries to others, the renter or borrower needs to decide what limit of liability will best protect their assets. Frequently we see wealthy pilots flying with affluent passengers in modest aircraft with minimal liability limits. While pilots do not like to dwell on what can happen, they must consider in advance what amount of insurance is necessary and adequate to protect themselves, their family, friends, and others.

A renter or borrower must understand what is expected by the insurer following a loss. Therefore, it is important to carefully read and understand the policy before operating the aircraft. Besides possessing a pilot certificate, a medical certificate, and being current for the operation intended, are there any additional training requirements? Is the aircraft that I intend to operate approved by the insurer?

For example, some policies state that the nonowned aircraft must not be a helicopter, have an engine with more than 450 horsepower, have more than one engine, or provide more than 7 seats. These types of stipulations are important for the aircraft owner to know as well.

Each non-owned policy also lists what to do in case of an accident. Every policyholder should be familiar with what is expected — most important is notification. Every incident or accident involving non-owned aircraft should be immediately reported to the owner of the aircraft and the non-owned insurer. Notification applies even when you feel you did nothing wrong or if feel the owner is not going to pursue a claim. Insurers would rather know sooner than later.

It is also important to understand that non-owned aircraft policies are excess insurance policies. This means that the coverage afforded by the insurer is excess over any other insurance. In other words, if the renter or borrower is entitled to liability

coverage under the owner’s aircraft policy, the coverage afforded by the owner’s insurer would apply first. This is something to consider when trying to decide how much insurance is needed to protect your assets.

Here are the takeaways from the presentation on non-owned aircraft liability insurance:

Non-owned aircraft insurance is liability insurance. The protection afforded by the insurer is based on the Named Insured’s legal liability.

Understand the definition of non-owned aircraft.

Read the aircraft rental agreement prior to shopping for coverage.

Purchase enough insurance to protect yourself and your assets.

Carefully read and understand your nonowned aircraft policy.

Fully understand the expectations of the owner and the owner’s insurer before operating the aircraft. Understand what your insurer expects of you regarding your pilot experience and the aircraft to be operated.

Immediately notify the owner of the aircraft and the non-owned aircraft insurer following a mishap and be prepared to cooperate with the insurer’s representative.

Non-owned aircraft insurance is an important part of the aviation insurance industry. Every owner and operator of an aircraft should always maintain an appropriate amount of insurance.

We can demystify non-owned insurance by simply becoming more familiar with the product and educating those who need it. Too often the person seeking coverage knows nothing about the product or how to determine what is needed. They purchase what they are told to purchase instead of carefully considering what they need. We need to do a better job for the benefit of all.

Finally, I am pleased to report that Jeff Sheets was elected to the AIA Board of Directors as Claims Director-Elect. Jeff will serve with me for one year before taking over after the 2024 Conference in New Orleans. Jeff will be an amazing representative for the Claims Division and I look forward to working with him.

David Gourgues is Regional Manager for McLarens General Aviation. An instrument-rated private pilot, he enjoys flying his 1965 Mooney M20C. His aviation insurance career began in 1990 in his hometown of New Orleans, Louisiana. Most of his 32 years as an aviation insurance claims adjuster have been spent doing field work. From his office in Orlando, Florida, he manages a team of aviation adjusters that cover the eastern part of the United States. He assumed the duties and responsibilities of AIA Director of Claims from Eric Weidner on May 3, 2022. His term will end in May 2024.

So, what is next in aviation?

Raffaella Basile, Chief Underwriter Aviation, Swiss Reinsurance Company Ltd AIA Director, Reinsurance Division

What an incredible couple of years our market has been through.

The challenges have been numerous, starting with a substantial deterioration of the reserves from a large aircraft manufacturer loss that is proving to be the largest single event loss in aviation history. The market is also still dealing with the challenges facing aircraft lessors and their aircrafts stuck in Russia and increased risk of war or terror events in the new geopolitical climate. To add to this, we see the continued rise of social inflation in the U.S. and the challenging claim severity trend exposing the liability limits offered in our slips.

What an exacerbation of the status quo. Given the impact of the above on company results, it is understandable to see a harsh price reaction and an increased focus around terms and conditions in the aviation reinsurance market. Reinsurers in general have not been able to cover their cost of capital, and there has been enhanced scrutiny at upper management level on the best use of capital.

Our market is proficient in looking backwards and creating views based on facts and data. The more challenging aspect, however, is to take a forward-looking view of risks based on specific market drivers and being able to read trends and emerging risks early.

reinsurance division

So, let us look forward.

Natural perils are becoming more significant in aviation: windstorms, tornados, flooding and hail, just to name a few. The unpredictability of events is increasing; for example, we are seeing an increase in the frequency of tornado activity in the U.S. and of clear air turbulence around the world.

And what about the rise in eVTOLs? Due to sustainability factors, we are increasingly seeing prototypes coming to market. Many challenges lie ahead in terms of technology, safety, cost, noise, pilot qualifications, etc. What will the exposure look like once these vehicles carrying passengers start flying through big cities?

W hat about cyber? It is one of the most rapidly developing risks facing the insurance industry. Studies show that attacks in aviation are increasing, mainly aiming to disrupt normal aviation operations. For the aviation insurance, the impact of these events is limited as business interruption and data breach losses are not typically insured in our market. However, a large cyber event causing physical damage and / or bodily injury in a multiple aircraft scenario could potentially have disastrous consequences.

We have also seen a rise in near mishaps at several airports in the U.S. Just this past January, we read about the near-collision between an American Airlines and a Delta Airlines aircraft — both fully loaded with passengers — at JFK airport. Thank goodness a collision did not occur.

A new and evolving risk landscape with a change in risk exposure cannot be ignored. As a market, we need to continue to think forward and adapt. Data may play a role in forecasting the new challenges. Predictive and behavior analytics could help us better understand and anticipate potential threats and better capture the exposures.

We must recognize the “what’s next” scenario and the changed risk landscape to be prepared for potential catastrophes before they occur.

Raffaella Basile is Chief Underwriter Aviation with Swiss Reinsurance Company in Zurich, Switzerland, and an aviation expert in both insurance and reinsurance whose career spans 25 years in various roles. She assumed the position of AIA Director of Reinsurance in 2022.

Aviation Inflation Hardening a Hard Market

Kristen Suarez, Executive Manager, BWI Aviation Insurance Agency, Inc. AIA Director-Elect, Agent/Broker Division

We all know that aviation insurance plays a critical role in mitigating the risks associated with owning and operating aircraft. As inflation continues to rise, the landscape of aviation insurance has undergone significant changes as the industry adapts.

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. During inflation the prices of goods and services rise and the purchase power of money decreases. Inflation is usually measured as an annual percentage increase in the consumer price index (CPI). For example, during August 2021 the CPI showed a 5.3% increase compared to the previous year — the highest level since 2008. As insurers were beginning to correct for

the years of soft market conditions and significant industry losses, we experienced broad-based inflation, which exacerbated an already hard market. This has challenged insurers to achieve and sustain profitable loss ratios due to the factors we’ll explore below.

Inflation can have a significant impact on aircraft values, parts, and aircraft repair costs. With technological advancements and market demand, aircraft values have been steadily increasing. As the general price level of goods and services in an economy rises, the cost of manufacturing aircraft, acquiring aircraft parts, and conducting repairs also increases. This, in turn, affects various aspects of the aviation industry, including aircraft values, repair costs, and ancillary expenses.

Firstly, inflation affects the value of aircraft. When inflation is high, the purchasing power of money decreases, leading to an increase in the overall price. This results in higher prices for new aircraft, but also influences the resale value of existing aircraft. Aircraft owners will find it particularly difficult to replace older aircraft that have been highly modified with upgraded avionics and technology, as the cost to purchase a similar vintage aircraft and make similar modifications may now be exponentially higher.

Suppliers are now charging higher prices for parts to cover their increased production and operations costs. Consequently, aircraft repair costs rise as the cost of parts increases.

In addition to the direct impact on repair costs, inflation can also result in higher ancillary claim costs, such as when an aircraft undergoes signification repairs and is grounded for an extended period. This situation can lead to additional expenses, such as payments for temporary replacement aircraft.

Secondly, inflation affects the costs of aircraft parts. Aircraft require regular maintenance, and parts replacement is often necessary to ensure their safe operation. With inflation, the cost of manufacturing and distributing aircraft parts increases.

Inflation can make the cost of leasing or renting temporary replacement aircraft more expensive, adding to the cost of the overall claim. Similarly, the need for temporary replacement parts during repairs can also lead to increased costs.

If certain parts are not immediately available, temporary replacement parts may be used to ensure the aircraft’s continued operation during the repair process. In an inflationary environment, the cost of these temporary parts may rise, further driving up the ancillary claim costs.

Third-party liability claims, particularly in cases involving bodily injury, can directly be impacted by an inflationary environment. Inflationary pressure can contribute to the concept of “social inflation,” which refers to the rising costs to settle liability claims. As the overall cost of living increases, individuals may have higher expectations regarding appropriate compensation for bodily injury. This can lead to higher settlement demands from claimants, as they seek to cover medical expenses, pain and suffering, lost wages, and other damages.

To address the impact of inflation, insurers have been forced to implement various adaptations to their underwriting philosophy. A few ways we have seen the market adapt are through implementing more risk assessment underwriting and offering risk management solutions.

Insurers rely on advanced risk assessment techniques including comprehensive analysis of aircraft records, safety measures and requirements for formal aircraft appraisals to accurately underwrite high valued aircraft. These resources allow insurers to determine appropriate premiums and coverage limits based on the unique risk profile of the insured aircraft. To manage and mitigate losses insurers continue to implement rate increases, reduce the ancillary coverages, and implement stricter underwriting by looking more deeply at pilot experience and enforcing additional training requirements.

agent/broker division

Insurers have also begun offering various risk management solutions to their policyholders as a value-added service, which has usually been offered in collaboration with other aviation industry experts in loss control and safety. This includes safety training, implementation of stricter maintenance and inspection protocols, and promoting adherence to industry best practices. These measures help mitigate the risk associated with high-value aircraft and third-party liability, ensuring safer operations, and reducing potential insurance losses.

This includes implementing safety protocols, conducting regular maintenance and inspections, and partaking in regular pilot training. By demonstrating a strong commitment to risk management, clients position themselves as “best in class” risks in the eyes of their underwriters. In the event of a claim, advising on prompt aircraft repairs can help limit the insurer’s exposure to additional costs such as storage fees and extra expenses.

Prompt repairs can also help minimize the impact on a client’s loss history and demonstrate a proactive approach to

As agents / brokers we are responsible for helping clients navigate an inflationary environment and that requires a proactive approach to managing risks and ensuring proper coverages. We should encourage clients to review and update their aircraft hull values to account for these changes. Second, clients should implement a culture of risk management and loss control measures.

mitigating costs. Lastly, regular policy reviews can help identify any gaps in coverage and ensure clients are adequately protected in the prevailing inflationary environment.

Kristen Suarez has been serving the aviation industry for seven years as of May 2023. She is currently the executive manager of BWI Aviation Insurance Agency, Inc., and a proud AIA member since 2018. She currently serves as AIA’s Director-Elect of the Agent /Broker Division.

Leveraging the AIA’s CLE programming

Michael McGrory, Partner, Amundsen Davis, LLC AIA Director, Attorney Division

Illinois has recently seen two significant legal developments that should be of keen interest to the aviation bar. In In re Ethiopian Airlines Flight ET 302 Crash (2023 WL 3728625), the U.S. District Court for the Northern District of Illinois held that Illinois courts would permit the families of passengers to recover for pre-impact fright and terror under Illinois’ Survival Act. This is a drastic departure from longstanding precedent that prohibited damages for emotional distress preceding a physical injury. E.g., In re Air Crash Disaster Near Chicago, Ill. On May 25, 1979, 507 F.Supp. 21 (N.D. Ill. 1980).

In addition, the Illinois legislature recently initiated an amendment to the Illinois Wrongful Death Act that, if signed by Governor Pritzker, would allow for the recovery of punitive damages in most wrongful death cases. Currently, and for well over 100 years, Illinois law did not permit punitive damages in such instances. This bill is almost certain to be enacted, so Illinois defense counsel and their clients can expect to see requests for punitive damages in future lawsuits involving fatalities.

Perhaps you saw a story about the Ethiopian Airlines ruling, which had some national exposure. Articles about the Illinois Wrongful Death Act amendment seem to have been more confined to local legal publications. More than ever before, this information is readily accessible from the comfort of one’s own desk. But there is so much information out there, and each of us is inundated with so many “updates” and “alerts,” it can be difficult to separate the wheat from the chaff and identify what developments are relevant to our practice. This is where AIA’s programming can be so beneficial.

AIA’s annual CLE program provides an opportunity to learn from experts about topics specifically pertinent to aviation law. There was another strong turnout in Tucson this year and the quality of the sessions reflected the hours of work put in by the generous presenters. Monika Korkowski from Great American Insurance, Mike Peeples from Peeples Consultants, and my partner Brandt Madsen from Amundsen Davis shared a wealth of experience about handling agricultural claims and litigation.

Michael Dery of Alexander Holburn updated attendees on Canadian aviation liability and the Canadian passenger rights movement. Chris Watkins from Starr, Orla Brady from Clyde & Co., and Shannon Dugan from Anderson Riddle provided an overview of evidence spoliation and tips on how to avoid it. Brett Godfrey of Godfrey Law discussed the remarkable impact of technology on the modern law practice.

While all attendees should have made a lot of progress towards CLE requirements for this year, hopefully all also learned something new and specifically relevant to their niche of the legal world.

We are already planning CLE programming for the 2024 Annual Conference in New Orleans. Please do not hesitate to contact me with any ideas for topics or speakers.

In addition, fellow Attorney Division member Mark Banovetz from Tressler shared his advice on how to resolve multiple claims with limited insurance proceeds to the joint Attorney/Claims Division meeting. Sunday’s General Session also provided several opportunities to earn CLE and many of our members took full advantage.

Mike McGrory is co-chair of Amundsen Davis’s Aerospace Practice Group in Chicago, where he represents all variety of aviation industry businesses in tort and commercial litigation.

Women in the Industry: Sybille Michèle Rexer

Nicole Wolfe Stout, Partner, Strawinski & Stout, P.C. AIA Treasurer

What did you dream of doing when you were young?

Name: Sybille Michèle Rexer

Title: Counsel

When I was very, very young I dreamt of living in the countryside with family, children, horses and sunshine. As an adolescent I was involved in human rights questions and decided it would be a good move to attend law school and gain some knowledge about regulations and how the world is moving …

Company: Arnecke Sibeth Dabelstein (ASD law)

Location: Hamburg / Germany

Years in the industry: 20

How did you get started in the aviation insurance industry? What was your first job?

My first job was as a lawyer in an international maritime boutique law firm doing ship financing and registration. From maritime to insurance and transportation / aviation was a logical step when I moved to ASD law (where I still am) and became more involved in multimodal transportation and aviation insurance (already 10 years ago).

The AIA is pleased to provide this series featuring women in the aviation insurance industry. Led by AIA Treasurer Nicole Wolfe Stout, interviewees will represent all facets of aviation insurance.

Did you have any mentors when you first started out?

All lawyers at ASD have a mentor. I still work with my mentor Marco Remiorz on a day to day basis and we have grown together — Marco became managing partner of ASD, and I became counsel with my own clients six years ago. Today we share many client relationships and attend aviation insurance conferences together like AIA on a regular basis.

What is the biggest factor that helped you be successful?

Success was shaped by two factors: in-depth knowledge and experience in the business as well as a formidable mentor and team.

Who inspires you today and why?

From a professional perspective I am inspired by women who successfully combined their career with being a mother and spouse, good friend, and open-minded team player. I appreciate my

IAWA (International Aviation Womens Association) friends a lot and love being involved in that organization as a regional chair (Germany, Austria, Switzerland). I met so many inspiring women at IAWA and I encourage aviation ladies to reach out to IAWA and join us. From a personal point of view, the young generation and their dynamic to get things changed in our world and to tackle problems like environment and equality questions is a strong inspiration and I try to help as much as I can and share my experience.

As a woman, what has been the most significant barrier or challenge you’ve encountered thus far in your career?

When I was a young mother of three children, (institutional) child care in Germany was still in its infancy. Hard times to get all done and part-time seemed the only option.

If you could, identify 1–2 “value added” items unique to women that they bring to your business.

I think that in general women have more of the client’s and team’s interests in view and are able to find solutions without the need to fight for winning at any price. Often in settlement talks women are able to leave their personal ego aside to find economically-balanced settlement agreements and thus finalize difficult (litigation) cases.

How do you balance work and life responsibilities?

My children are nearly grown up but still love their mother to care for them. I try to involve them in household duties and to raise young adults who manage their own responsibility. Of course I have help at home and I could rely on my friends network, my mother and many others for the last 15 years also helping me to raise the children. Being flexible and home office opportunities are a big help. It takes a village to raise a child — thanks to all my village!

What is one of your most memorable experiences in the industry so far?A litigation case where an airplane crashed into the Mediterranean — all could be saved but we had litigation and investigations for over five years in Germany (in the end for the insurance very successfully settled) and so many personal topics from all parties involved that it is really memorable.

How do you see the roles of women in your business changing over the next 5–10 years?

We have more well qualified young female lawyers and women in the insurance and aviation industry. For the big law firms it will be the next step to work on their career plans for women and keep them on board when they start being mothers – blue skies hopefully in view…

Do you have any suggestions on how the AIA can support women in our industry?

The IAWA women group is a good step. Also to involve women in the AIA education program and with speaker slots could be helpful. Perhaps also a What’sApp group to share also our good moments (not only professional) and remain better connected throughout the year.

As a leader, if you could give one piece of advice to a young woman starting her career what would it be?

My advice would be: find a good mentor; be strong, reliable and loyal with your colleagues; and work intensely and on the same basis with and for your business relationships. Build your expertise, of course, but build your network as well. Get involved with other women, share your experience, and get and appreciate support from others to build a village.

Nicole Wolfe Stout leads the AIA Women’s Initiative and interviews women in aviation for this series. She has served on the AIA Board of Directors in several capacities, including her current role as Treasurer on the AIA Executive Committee. Nicole is a partner at the law firm of Strawinski & Stout, P.C.

tucson roundup

Thank you to the more than 530 aviation insurance professionals who joined us in Tucson, Arizona for the 2023 AIA Annual Conference May 5–May 8. Set against the picturesque Tucson Mountains, this year’s conference featured four days of networking,

continuing legal and insurance education, southwestern cuisine, authentic resort experiences, and more. See highlights from AIA 2023 on the next few pages.

For a full photo gallery, visit the AIA website.

Looking Ahead

Jeffrey T. Sutton, President, London Aviation Underwriters, Inc. AIA Director, Underwriter Division

I spent the past year shadowing Wes Collier on the AIA board to see the inner workings of the association. His contributions over the past couple of years to the AIA and the Underwriter Division are really appreciated. We are lucky to have him continue as a member of the board in his new role. I would like to personally thank him for providing me with an understanding of how the association is managed and for showing me the ropes.

In the time that I was shadowing, I was really impressed with how dynamic the AIA board and committees are.

Tucson 2023 was a success, as was Nashville 2022, and Greg Sterling, outgoing president, and the rest of the team are commended on a job well done.

Tucson was my first in-person board meeting and first time running a division meeting.

While I was disappointed in the turnout to the division meeting, the discussion was good.

More than 50% of the underwriters that attended were female and they expressed a desire that the AIA’s Women’s Initiative expand; the male underwriters in attendance supported the idea. Introductions have been made in order to facilitate this.

to replace me on the board — perhaps a female will agree to run this time.

I would appreciate some feedback from members of the Underwriters Division on how the association can improve and provide meaning for our members.

With the increase in females being hired as aviation underwriters, I definitely pledge my support for them and the Women’s Initiative.

AIA is a great organization and the annual conference is a great place for us to meet with so many people from around the globe that we could not travel to visit personally each year. I know it can be tough to make all the meetings on the conference agenda when they conflict with available times to meet with these folks that you may not be able to see until next year. Nevertheless, it would be good to have more members in our division meeting to discuss important topics of interest. Hopefully there will be more interest in attending next year’s division meeting as we will have an election

Please reach out to me with any suggestions, especially for topics for future Binder articles.

In the meantime, I look forward to working with AIA President Chris Morin and the rest of the board and committees in supporting this great industry and to seeing everyone in New Orleans next year!

With more than 30 years of aviation insurance experience, Jeff Sutton is president of London Aviation Underwriters. A 1988 graduate of Embry-Riddle Aeronautical University with a B.S. in Aeronautical Science, Jeff also has his J.D. from Seattle University School of Law and is a commercial pilot with MEI ratings. Jeff serves as the Director of the Underwriter Division on the AIA Board of Directors.

Ground Handling SMS . . . Are You Feeling Lucky Today?

Terry Yeomans, Program Director, International Standard for Business Aircraft Handling (IS-BAH)

Many of us can honestly admit to having been lucky — avoiding a close call that could have been an accident — but when will that luck run out? In the summer of 1984, freshfaced with a full head of hair, I started my business aviation journey. One of my earliest on-the-job memories was helping a departing Gulfstream III flight when the owner drove up planeside in his Ferrari Testarossa, threw me the keys, and told me to go and park the car. It wasn’t a pretty sight, bunny hopping and stalling the engine as I passed a variety of multi-million-dollar aircraft to park outside the FBO with a raft of other high-end cars. Thankfully I didn’t hit anything, and yes, I was lucky that day.

Traditional safety approaches are often reactive, addressing problems only after an incident or accident has happened, a new standard or regulation is published, or a third party finds an issue that must be fixed. A well-structured and scalable Safety Management System (SMS) recognizes that proactively addressing weaknesses — and identifying and mitigating the associated risks arising from those hazards before they result in losses — is a far more effective and economical approach.

Why SMS?

Currently, the International Civil Aviation Organization (ICAO) Annex 19 on Safety Management Systems requires States (national authorities), as part of their oversight of “service providers” (including commercial aircraft operators, aerodromes, and international general aviation operators of large or turbojet airplanes), to implement a Safety Management System (SMS).

As the SMS oversight matures, the aircraft operators and aerodromes in these member States will start to consider the possible impact their interfaces with suppliers and vendors have on the effectiveness of the performance of their SMS. In addition, some States are considering the inclusion of Ground Handling Service Providers (GHSPs), which includes FBOs, in the full scope of their safety plans, including requirements for SMS. The maturity of the organization’s SMS is a critical factor in the long-term recognition of the use of industry best practices that conform to ICAO Standards and Recommended Practices (SARPs).

What’s Wrong with the Way Things Are Now?

According to Allianz Global Corporate & Specialty 2020 risk report, ground congestion is causing delays and safety concerns. With more aircraft on the ground, crowded servicing areas and aprons are increasing the number of ramp collision incidents.

Data gathered by IBAC from various sources has shown that 37% of incidents result in aircraft damage, 59% when the aircraft comes into collision with ground servicing equipment (GSE), other aircraft, or static objects (trees, lamp posts, hangars, etc.), and 72% are happening when the aircraft is parked and under the control of the ground handler.

Analysis of more than 500 loss events at 14 German airports by AGCS shows that damage to vehicles on the tarmac is a leading cause of insured losses. More than 50% of these events were due to collisions with pushback tractors, baggage trolleys, aerial work platforms, or washing systems. The European Aviation Safety Agency claims “accidents related to ground handling constitute the fourth biggest accident category in the last decade.”

Senior management should be genuinely committed to achieving and maintaining a high level of safety and give employees motivation and the means to do so. If a culture is created where safety is a commitment made by management, then both employees and customers will see that their welfare is your priority. It is better to have employees working with you to manage their own safety and feel more responsible for their safety and their co-workers as well.

Why Make the Change?

GHSP owners and managers need to have an adequate understanding of SMS implementation, industry recognized programs, and ICAO standards. SMS implementation must bring value to the organization. Conforming to a recognized industry standard can provide a competitive advantage and could well be a deciding factor when a customer has a choice between two or more comparable suppliers. By implementing an SMS and securing ISBAH registration, organizations can allow customers to showcase their dedication to safety in their own business dealings.

Change is about improvement and working smarter, not harder. Change is best made with small incremental steps, not complete overhauls. The change to SMS requires leadership to embrace it and lead by example.

Although our industry is inherently safe, it takes continuous improvement to avoid just being lucky!

Terry Yeomans is Program Director for the International Standard for Business Aircraft Handling (IS-BAH). He began his business aviation career in 1984 with McAlpine Aviation based at Luton Airport. Prior to joining the IS-BAH Program for IBAC, he worked for Air Routing International/Rockwell Collins as Manager Ground Operations Standards & Development (Europe/North Africa) responsible for coordination and supervision (ground logistics) of ad-hoc business aviation flights operating to and from the UK’s various airports for a major international flight service company. Yeomans is a former council member and deputy Chairperson for the British Business & General Aviation Association (BBGA), past chair of the EBAA Airport Handling and Ground Operations Committee (AHGOC), and council member (and treasurer) of the International Business Aviation Council (IBAC).

Board of Directors

President

Christopher S. Morin

Murray, Morin & Herman, PA Tampa, FL cmorin@mmhlaw.com

Vice President

Ian Wrigglesworth

Guy Carpenter

London, United Kingdom ian.wrigglesworth@guycarp.com

Secretary

Luke Uithoven

Kimmel Aviation Insurance Agency, Inc. Greenwood, MS luke@kimmelinsurance.com

Treasurer

Nicole Wolfe Stout

Strawinski & Stout, P.C. Atlanta, GA nws@strawlaw.com

Director, Agent/Broker Division

David Hampson

Schrager Hampson Aviation Insurance Agency Bedford, MA david@planeinsurance.com

Director-Elect, Agent/Broker Division

Kristen Suarez

BWI Aviation Insurance Agency, Inc. Canyon Lake, CA kristen.suarez@bwifly.com

Director, Attorney Division

Michael McGrory

Amundsen Davis, LLC Chicago, IL mmcgrory@amundsendavislaw.com

Director, Claims Division

David Gourgues

McLarens General Aviation Celebration, FL david.gourgues@mclarens.com

Director-Elect, Claims Division

Jeff Sheets

Applied Underwriters Aviation Los Angeles, CA jdsheets@auw.com

Director, Reinsurance Division

Raffaella Basile Swiss Reinsurance Company Ltd Zurich, Switzerland raffaella_basile@swissre.com

Director, Underwriter Division

Jeff Sutton

London Aviation Underwriters, Inc. Federal Way, WA jtsutton@londonaviation.net

International Director

Andy Trundle

Starr Aviation London, United Kingdom andy.trundle@starrcompanies.com

Director-at-Large

Chris Arnold King Insurance Partners Hartford, CT chris.arnold@king-insurance.com

Director-at-Large

Wes Collier Old Republic Aerospace Kennesaw, GA wcollier@ORaero.com

International Director-at-Large

David Watts

Old Republic Canada Ontario, Canada dwatts@ORaero.com

Immediate Past President

Greg Sterling AIG Aerospace Atlanta, GA greg.sterling@aig.com

AIA General Counsel

Bob Williams Victor Rane PLC Pittsburgh, PA rwilliams@victorrane.com

Executive Director

Mary Gratzer Aviation Insurance Association Lexington, KY mary.gratzer@aiaweb.org

Glossary of Common Aviation and Insurance Acronyms

AIA — Aviation Insurance Association

AOPA — Aircraft Owners and Pilots Association

ASAP — Aviation Safety Action Program (FAA)

ASIAS — Aviation Safety Information Analysis and Sharing system (FAA)

CASA — Civil Aviation Safety Authority (Australia)

CAAC — Civil Aviation Administration of China

COPA — Cirrus Owners and Pilots Association

EAA — Experimental Aircraft Association

EASA — European Union Aviation Safety Agency

E6B — A type of manual or electronic flight computer

EVTOL — Electric Vertical Takeoff and Landing Vehicle

FAA — Federal Aviation Administration (U.S.)

FBO — Fixed base operator (service station for aircraft and pilots)

FDM/FOQA — Flight Data Monitoring / Flight Operations Quality Assurance

GA — General Aviation

GAMA — General Aviation Manufacturers Association

GHSP — Ground Handling Service Providers

IATA — International Air Transport Association

IBAC — International Business Aviation Council

ICAO — International Civil Aviation Organization

IFR — Instrument Flight Rules

IMC — Instrument Meteorological Conditions

IS-BAO — International Standard for Business Aircraft Operations

IS-BAH — International Standard for Business Aircraft Handling

MRO — Maintenance Repair Organization

NBAA — National Business Aviation Association

NTSB — National Transportation Safety Board (U.S.)

P&C — Property and Casualty

SMS — Safety Management System

VFR — Visual Flight Rules

WAI — Women in Aviation International

This is an abridged list of aviation insurance terms that appear in current and previous editions of the AIA’s Binder magazine.