The Binder 48.4 - Winter 2024 by Aviation Insurance Association

VOL. 48 NO. 4 — winter 2024

PRESIDENT’S MESSAGE

CHART A COURSE — 2024 AND BEYOND DIVISION REPORTS

AGENT/BROKER DIVISION: SUMMARY OF 2022 STATUTORY FINANCIAL RESULTS CONFERENCE FEATURE

AIA 2024 IN NOLA

SAFETY REPORT

WHAT PILOTS DON’T KNOW MAY HURT YOU

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table of contents

chart a course — 2024 and beyond

aia in london

Something to Think About: Cumulative Impact of Small Decisions

aam insurance: a call to action

PRESIDENT’S MESSAGE

london higlights

international

claims division

co on the mind

women’s initiative spotlight Women in the Industry: lyndsay garnica

carbon monoxide in the cabin — a dangerous passenger

registration opens february 1

what pilots don’t know may hurt you

safety report

aia 2024 in nola

22 Agent/broker division

board of directors

U.S. General Aviation admitted market: Summary of 2022 statutory financial results

EDITOR

KIM ROSENLOF Aeroink Incorporated

The ideas and opinions expressed by authors of articles published in The Binder are wholly their own and do not necessarily represent those of the Aviation Insurance Association. The articles are not provided as legal advice.

www.aiaweb.org 3

Published by the Aviation Insurance Association 2365 Harrodsburg Road Suite A325 Lexington, KY 40504

PRESIDENT’S MESSAGE

CHART A COURSE — 2024 and Beyond chris morin, managing Shareholder, Murray, Morin & Herman, P.A. aia president 2023–2025

Greetings everyone, and I hope you’ve had a great start to 2024!

Many thanks to the Safety Committee cochairs, Steve Bruneau and Past President Jim Gardner, who joined the meeting via Zoom at a very uncomfortable hour for them (due to the time zones) to deliver their committee report. As always, they’re rock-solid supporters of the AIA and we’re so appreciative of all they do for us.

Before I began writing the President’s message for this issue, I reread what I wrote for the last issue of 2023. I shared an overview of everything that the AIA had accomplished in 2023; all our successful educational and networking events, launching a new website, among other things. I finished by sharing our November plans for London. In London our Core Principles and Concepts Course instructors, Tim Bonnell, Jr. and Doug Johnson, were joined by Londoner and esteemed AIA Past President, David Sales, to offer the class to a group of new aviation insurance professionals. Later, more than 150 representatives from the industry stopped by the Corn Exchange for our networking event. In addition to our colleagues in the UK, people travelled from all over the U.S., Switzerland and Germany to join us. Check out some of the photos from the AIA’s activities in London on pages 30–32.

But it was Day One of our plans in London that really stood out to me and has me even more excited for the future of the AIA. Let me back up a bit. In 2022, the AIA was getting back up to speed post-pandemic. You’ll recall we relaunched our educational programs and networking events, introduced a few new ones, got back on track with our annual conference, and regained our healthy membership numbers. It was obvious that the AIA could be nimble and adapt to our everchanging environment. Just like the Association, the aviation market and the insurance industry that supports it has had to adapt to pandemics, wars, economic pressures, and more. But just because we know we can be flexible doesn’t mean we should forego planning. In fact, having that plan can make dealing with surprises a bit easier.

As amazing as these two London events were, I’m equally pleased by the meetings you may have not seen or known about. The Board of Directors meeting was hosted at the Marsh/ Guy Carpenter offices in London.

PRESIDENT’S MESSAGE I liken it to the preparation that a pilot makes before even getting into the aircraft; our members who hold pilot certificates will understand completely. The concept of expecting the unexpected and planning for contingencies is an integral part of preflight planning, not to mention learning from past events and taking those cues to be better each time we climb into the right seat. The pre-flight walk around, route of flight, weather, and so much more, all go into the strategic plan for that flight. So too has strategic planning become a priority for the AIA.

With only one day devoted to the discussion, we focused on two key areas: membership and programming. Questions were provided to spur dialog, and those questions led to more questions, brainstorming, and an abundance of ideas! Again, a testament to the great work of not just coach Tracy, but to the Board of Directors as a group of dedicated members looking to make the AIA even better.

MEMBERSHIP As membership is the lifeblood of any organization, we began our day focusing on membership value to ensure relevance and future-proofing the AIA.

Once the Board made the commitment to the strategic planning process, and to ensure we achieved the very best results, we brought in a professional. Tracy Sinclair is a professional coach, business consultant, and facilitator who resides in London and has worked with high-profile clients such as Goldman Sachs, BMW, Amnesty International and Unilever. Tracy has held numerous leadership positions on the UK and Global boards of the International Coaching Federation, so she understands the challenges of organizations with finite resources.

How can the AIA best serve the various segments of the industry? What benefits can we provide for members in each division of the organization?

The concept of expecting the We have members who are attorneys, claims unexpected adjusters, agents and brokers, and planning for underwriters, and reinsurers, contingencies is and their needs are so varied. an integral part of What can the AIA offer to industry professionals pre-flight planning. regardless of where they are on their career path? How do we attract the next generation of aviation insurance professionals? Can we assist in transitioning a current insurance professional into the aviation insurance market?

Tracy and the AIA staff did the background work to ready the Board for the day: developing questions to consider, condensing AIA history, providing membership statistics and reports, and gathering information on AIA’s many educational and networking programs.

PRESIDENT’S MESSAGE What value can we bring to our members, regardless of location? The AIA has members in many countries outside the US, so what value can we bring to them if they are never able to attend an AIA conference?

future of the AIA, so much so that future meetings are on the books to carry the momentum into 2024. So . . . what does all this mean, and what’s next?

PROGRAMMING

All the ideas and discussions of the day have been concentrated into specific goals around both membership and programming.

Questions on how we serve our members and provide value naturally led to a robust discussion on programming. Insurance education is easy to access, but education specific to aviation insurance is more limited.

Those goals have been prioritized by the Board, and the AIA staff is working on

Is the AIA offering educational opportunities for all segments of the industry? Are we varied enough in how we share that content with our members? Are there more creative ways to deliver content? How are we providing value and education to aviation insurance professionals outside the US?

developing a strategic plan with action items to achieve those goals. Some goals will be easy and achievable in Year One. Some may be more long-term and might need additional resources and time – Year Three? Regardless of the timing, we will need the continued support and engagement of you, the AIA membership at large, and the industry to take some of these ideas and make them realities. I trust I can count on you when the time comes!

I think I can speak for the rest of the Board when I share that we finished the day energized and full of optimism about the

PRESIDENT’S MESSAGE

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.

This is your AIA. If you have a talent, article idea, desire to serve, or wish to contribute in some way, we’d love to hear from you.

claims division

Something to Think About: Cumulative Impact of Small Decisions Ted Green, Aviation Insurance Consultant

There are also deep-dive actuarial analyses of reserves. Reserves on individual claim files aggregate into a big impact on a company’s overall reserves. Think about your own group of pending files. You will quickly realize you have an impact of several million dollars of reserves.

The AIA leadership asked me to share thoughts and observations of my aviation insurance career. Thirty-eight years progressing through most of the positions in the claims department gave me insights to share with you about the impact you, as an individual, have on insurance company profitability. Business schools teach that you can’t manage what you don’t measure. Remember that while you manage things, you lead people. You lead the customer, broker, vendors, experts and lawyers to a successful claim outcome. Senior leaders must have meaningful information and consistently reliable input from the claims team to manage their business. This information helps decide what their risk appetite will be and where to find other business opportunities.

Within six months, there should be a good handle on reserving for a claim. Obviously there are exceptions. Most claims yield consistent results such as prop-strikes, engine foreign object damage (FOD), slip trip falls, and single fatality accidents. The multiple fatality, serious injury accidents, or complex products claims provide interesting challenges. Achieve good information flow on reserves and likely outcomes by evaluating facts and have a plan for resolution as early as possible.

A consistent reserving practice of claims is essential for a company’s financial success. Adverse reserve development has significant negative impact on a company’s financials. How senior leaders manage reserves is varied, but almost all are on a periodic basis, typically quarterly.

The starting point is answering the key questions of a claims investigation: Who? What? When? Where? Why? How much? Where is the coverage? What will the closed claim look like; i.e., how much are we going to bleed from this loss and what have we learned from it?

claims division The adjuster must gather facts from customers, claimants, brokers, FAA, NTSB, local police and fire, airport management, etc. Experienced adjusters have developed a sixth sense on the value of repairs, injuries or wrongful death. It is the company’s claim file with you at the helm. Do not lateral your claim file to defense counsel. Do not be shy about contacting plaintiff’s counsel to get basic biographical and injury information.

for uncovering and pursuing that potential? What is your plan for reaching out to the subrogation target or its insurance carrier to discuss an early less-litigious way to reach a settlement, sharing or funding agreement? What is the plan to defend the insured? One wise defense counsel I know is fond of saying, “What does your verdict form look like?” This is the end game — what do you want to achieve and how do you get the result wanted on the verdict form?

This is a wonderful opportunity to develop or build upon rapport with plaintiffs’ counsel. Be honest about your desire for information as an end to achieving a settlement agreeable to both parties. All parties may not have a clear picture on liability, but there is typically enough information available for meaningful evaluation of economic damages.

Don’t fall into the trap of being married to your evaluation of liability and damages. New facts are continually uncovered as you work through your resolution plan. Do not be lulled into believing in your own or counsel’s bovine scatology. Avail yourself of round tabling or a bouncing off ideas with a trusted colleague or mentor. The last thing you want is to be caught in an echo chamber. Be disciplined about letting others challenge your evaluation of the claim. Our job as claims professionals is not to make new law, send a message, or defend truth and justice. Our job is to put a tourniquet on the claim to stop the financial bleeding that is damaging the customer’s loss ratio and the company’s financial results.

Do not get lulled into the trap of letting a claim age without meaningful analysis of facts, economic and biographical information. The only people highly motivated to do a good early evaluation of a claim are handling adjusters and their senior leaders. As the claim develops, continually cogitate about your path to success. Do not forget about potential subrogation or joint tortfeasors. What is the plan you and legal counsel have

Ted Green retired last year as AIG’s Global Head of Aerospace Claims. He now spends his time ranching in Texas and consulting on insurance matters.

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Women’s Initiative spotlight 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.

Women in the Industry: lyndsay garnica Nicole Wolfe Stout, Partner, Strawinski & Stout, P.C. AIA Treasurer

Lyndsay currently works as a specialized insurance consultant for claims and crisis in aviation, space, maritime and other complex insurance areas for the Mexican government and private entities. Her expertise also includes disaster law, defense and national security, roles that have been “very challenging but also providing incredible opportunities to grow and make real changes within the industry.”

Name: Lyndsay Garnica Title: Insurance Consultant Location: Mexico City, Mexico Years in the industry: 15

“In addition to being two wonderful and very experienced female leaders in the insurance industry, I’m happy to call them my friends and daily Inspiration,” Lyndsay says. What did you dream of doing when you were young? When I was a little child, I dreamt about being an astronaut. However, around age 16 I realized that was very unlikely to happen. Among other things, space program was not doing good. Oddly, life found a way to place me in something related.

An active online content creator, Lyndsay posts regularly on Tik Tok and other platforms about aviation insurance, aerospace, military technology, defense and related topics. She is also the proud co-creator of the “Mujeres a Todo Riesgo” (All Risk Women) podcast along with insurance professionals Ana Clemente and Joana Diaz.

What was your first job? My first formal job was at Walt Disney World´s EPCOT. There I had my first introduction to what’s now known as a safety management system (SMS). Back then, I was a law student taking a year off to find my dreams because I was unsure about law school.

Women’s Initiative spotlight

What is the biggest factor that helped you be successful? Not being afraid of being weird and taking the road less paved. Most of all, I love what I do so much that for me it’s not a job.

How did you get started in the aviation insurance industry? Once I went back to Mexico from Disney, and back to law school, I found finding a job very hard. I was rejected eight times before being hired by Mr. Manuel Garcia Pimentel at a law firm specialized in Aviation CAT insurance. To be fair, I took the job because he was the brave one that hired me, but I had no idea I would find the job of my dreams. While I would not go to Space, I would be able to work in something related.

Who inspires you today and why? My parents, my mentors, and my students. But I must also add Taylor Swift; to me, she is a great example of turning adversities and challenges into success and inspiration to others. As a woman, what has been the most significant barrier or challenge you’ve encountered thus far in your career? Here I have a funny story. Many years back, for a while, all communication was through email with my principals in Europe, and they started asking for me quite often as they said they liked my work (all in writing). Eventually I realized they thought I was a male in my mid-fifties.

Did you have any mentors when you first started out? I feel very lucky and blessed to have been mentee of three wonderful aviation professionals thorough my life: Manuel Garcia Pimentel as mentioned above, but not less important, Arturo Pelayo and Ian Foord (currently president of AAV Aviation Adjusters), who helped me be what I am today. Also, while not aviation but insurance related, Carlos Zamudio.

Women’s Initiative spotlight

They were shocked when they found out I was a 23 year old female… I’m quite sure they would not have assigned me many of the cases they did had they known I was a [young] woman.

Don’t let anyone tell you that you are dreaming too big or that your skills are If you could, identify 1–2 “value added” items unique worthless. to women that they bring to your business. Emotions. While we are often told emotions make us weak and are a disadvantage, I truly believe emotions are a big asset, especially in my area where I often deal with people affected by the operation of an aircraft. I have found most people just want to be listened to, and this turns out to be very helpful through negotiations.

How do you balance work and life responsibilities? I try to be very conscious about personal time, which can be hard when you enjoy work to the point you forgot you are working! I would say that having supportive friends and family who keep my feet on the ground helps a lot.

What is one of your most memorable experiences in the industry so far? That’s a hard question because I have a lot! However, something that often comes to my mind was an experience back at law school. I was already working for Mr. Garcia Pimentel, so when the professor asked what law field we worked on, I said aviation insurance law.

Women’s Initiative spotlight I recall all my classmates laughing and one even saying, “just say you don’t have a job, but don’t lie.” ... and well, against all odds, here I am years later still in aviation insurance law.

So for me it’s hard to believe I’m now being interviewed as a seasoned insurance professional. I would like the young me at that AIA conference to answer this, because back then I truly needed a woman to look up to. Hence, I would say that showing the world we do exist helps younger generations find their way.

How do you see the roles of women in your business changing over the next 5–10 years? I have seen a lot of growth of female leaders in this past decade, though I don’t believe it’s enough since it seems few women reach senior levels. That’s where I feel it’s necessary to keep pushing forward. Once I read a study saying that every woman that reaches senior level raises 10 more women in her circle, so I’m hoping that keeps adding up.

As a leader, if you could give one piece of advice to a young woman starting her career what would it be? Don’t let anyone tell you that you are dreaming too big or that your skills are worthless. Dream so big that others don’t believe you and think you can’t make it. 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.

Do you have any suggestions on how the AIA can support women in our industry? AIA for me has been a breakthrough. The first time I attended an event in London as a student, I was asked for coffee at least three times.

Registration Opens February 1 at 10:00 AM ET

Your Conference Experience Starts Here info@aiaweb.org | (859) 219-3545 | www.aiaweb.org

Why Should You Attend? You’re invited to join us for the 2024 AIA Conference May 3-6 in New Orleans, Louisiana. AIA 2024 is the best venue to trade experiences, create business partnerships, and analyze the current state of the industry from each segment of the association. Network with your peers and learn what is to come for the aviation insurance industry during our many education sessions. What’s Included with Your Registration: • Access to the full conference program • Up to 12.0 hours of CIE- and CLE-accredited educational sessions available • Numerous formal and informal networking opportunities • Access to the Exhibit Area featuring the latest industry technologies and services • Education led by aviation insurance experts on topics impacting your organization • Inspiration from the General Session Keynote speakers • And much more!

Schedule At A Glance Friday, May 3 1:00 - 5:00 PM

Continuing Legal Education Sessions

Saturday, May 4 7:30 AM - 1:00 PM

Sporting Clays Tournament

7:30 AM - 1:00 PM

AIA Golf Tournament

3:30 - 5:00 PM

Queuing Up at AIA

6:30 - 7:00 PM

New Member/First-Timer Reception

7:00 - 8:30 PM

Welcome Reception at the Sazerac House

Sunday, May 5 7:00 - 8:00 AM

Breakfast

8:00 AM - 12:00 PM

Continuing Insurance Education Sessions

12:00 - 1:00 PM

Lunch

1:00 - 5:00 PM

Continuing Insurance Education Sessions

Monday, May 6 7:30 - 9:00 AM

Women’s Initiative Breakfast *SCHEDULE CHANGE*

8:00 - 9:00 AM

Breakfast

9:00 AM - 1:30 PM

General Session and Keynote Luncheon

2:00 - 3:00 PM

Division Meetings and Elections

6:00 - 9:00 PM

Closing Party at Mardi Gras World

Industry Education CONTINUING LEGAL EDUCATION (CLE) SESSIONS | Friday, May 3 To kick off the first day of the AIA conference, our CLE programming delivers four hours of legal education focused on issues impacting attorneys specializing in the aviation insurance industry. Topics will include mock trials and the effective use of jury consultants, pressing issues in law firm management, runway incursion liability, and the legal framework for advanced air mobility. CONTINUING INSURANCE EDUCATION (CIE) SESSIONS | Sunday, May 5 The CIE programming features a full day of insurance education specific to our industry led by aviation industry experts you’ll recognize. Sessions are approved for up to 8 CE credits. This year’s sessions include: • Issues with the Aviation Commercial General Liability Insurance Policy and Contractual Liability • Recent Developments in Aviation Litigation and Insurance • Data Driven Risk Modeling in Aviation Insurance • Insuring Advanced Air Mobility (AAM) Aircraft • Understanding FBO Risk – Are your clients spending more on Image than Safety? GENERAL SESSION | Monday, May 6 Start your week off right and be inspired by AIA’s keynote speakers. Always an attendee favorite, join your peers for a morning of education, inspiration, and laughter during the General Session. We’ll also announce the 2024 Pinnacle Award winner and recognize the newest class of Certified Aviation Insurance Professionals. Gary Churchill, CPCU, CAIP, Executive Vice President & Chief Operating Officer, General Aviation Underwriting, Old Republic, will kick off the morning with an update on the aviation insurance industry. Then we’ll be joined by an official from the FAA’s Office of Aviation Safety to hear the latest trends, statistics, and predictions for the future. LUNCH KEYNOTE | Monday, May 6 Top Gun: Maverick like you've never seen it before! The AIA is thrilled to announce our lunchtime keynote: a special hosted interview with three of the principal pilots who helped make this blockbuster film everything we hoped it would be. From a deep dive into how Hollywood approaches aerial safety when lives and millions of dollars of fighter jets are on the line, to working with the biggest names in the industry, to the tricks of getting that perfect shot (Remember the scene with the shack? Or the one-shot bomb that must hit the target at all costs?), all while pulling off some of the most incredible and dynamic flying ever seen both on and off the screen... this luncheon is not to be missed. We suggest you watch the movie again for the second, third, or tenth time, so the behind-the-scenes stories, and never publicly shared anecdotes will resonate the most. Join us for an hour of humor, insider exclusives, and a celebration of what happens when strategic safety meets movie magic.

Networking Opportunities

Queuing Up at AIA Saturday, May 4 Sporting Clays Tournament* Saturday, May 4

New Member/First-Timer Reception Saturday, May 4

Exhibit Area Sunday, May 5 & Monday, May 6

AIA Golf Tournament Saturday, May 4

Women’s Initiative Breakfast Monday, May 6

Welcome Reception at the Sazerac House Saturday, May 4

Closing Party at Mardi Gras World Monday, May 6

Networking Opportunities Sporting Clays Tournament

Kick off your Saturday morning with a clays tournament at High Point Shooting Grounds. Pre-registration is required.

AIA Golf Tournament

Join us for a golf scramble at the nearby Bayou Oaks at City Park. Pre-registration is required.

Queuing Up at AIA

Agents/brokers and underwriters are invited to participate in this unique speed networking event.

New Member/First-Timer Reception

All new members and first-time attendees are invited to learn tips and network with AIA members.

Welcome Reception at the Sazerac House

Enjoy your first opportunity at AIA 2024 to engage professionals from all facets of the industry. Home of the world’s first cocktail, the Sazerac House offers local spirits, unique entertainment, and more.

Exhibit Area

Visit the Exhibit Area to connect with our exhibitors and source new technologies and services.

Women’s Initiative Breakfast

All women are invited to join their peers for a discussion on the challenges and opportunities impacting women in the aviation insurance industry over breakfast.

Closing Party at Mardi Gras World

Join us for our Closing Party at the Mardi Gras World. Stroll through a warehouse filled with unique Mardi Gras floats and decor before enjoying an evening of drinks and southern cuisine on the indoor Grand Oaks Mansion grounds. Must see to believe!

Exhibitor Information We are pleased to offer a tabletop Exhibit Area as an opportunity for attendees and exhibitors to network and exchange information about new technologies and services. Learn more about the exhibitor experience below: The Exhibit Area will be located in the main room of AIA’s conference space to maximize foot traffic. The Exhibit Area will be open on Sunday, May 5, and Monday, May 6. Since foot traffic in the main foyer varies throughout the conference, to maximize their engagement with attendees, we recommend exhibitors staff their tabletop displays during the following times: • Sunday, May 5 | 7:00 AM – 9:00 AM • Sunday, May 5 | 11:45 AM – 1:15 PM • Monday, May 6 | 7:45 AM – 9:15 AM Exhibitors are welcome to staff their booth throughout Sunday and Monday or simply leave materials out during slow periods. To encourage attendees to engage with all exhibitors, the AIA team will once again offer a gamification element to the Exhibit Area experience. Prizes for participation will be provided by the AIA.

Hotel & Travel New Orleans Marriott The 2024 AIA Conference will take place at the New Orleans Marriott (555 Canal St, New Orleans, Louisiana, 70130). With a less than five-minute walk to famous Bourbon Street, beautiful views of the Mississippi River, and easy access to an array of restaurants and bars, the New Orleans Marriott offers a prime location for networking and fun. Discounted Rates for Attendees Beyond simple convenience, staying at the host hotel offers opportunities for spontaneous connecting and learning outside of organized functions. We are pleased to offer our AIA guests a negotiated hotel rate of $259++ per night for reservations made by Thursday, April 4, 2024 (subject to availability; open to registered attendees only). Please note that there are two Marriott properties on Canal Street if you book outside the AIA room block. Additionally, AIA 2024 occurs over the second weekend of New Orleans Jazz & Heritage Festival. Although the festival is held outside the city, the availability of hotel and dining reservations are expected to be impacted. Need assistance with dining reservations? Joieful, a third-party company that operates the New Orleans Marriott’s concierge desk, is here to help by email at info@joieful.com or phone at (504) 581-1000 ext. 4251.

About New Orleans New Orleans is the birthplace of jazz, home to Creole cuisine, and rich with history and unmatched southern hospitality. Nicknamed the “Big Easy,” New Orleans is truly a place like no other with a unique blend of French, Spanish, Caribbean, and African cultural influences in its architecture, food, people, and music. Additionally, New Orleans has a diverse economy with the main sectors being energy, advanced manufacturing, international trade, healthcare and tourism. Located approximately 15 miles from downtown New Orleans, the Louis Armstrong New Orleans International Airport (MSY) welcomes millions of travelers each year from around the world. Visit www.neworleans.com to discover everything the Big Easy has to offer you.

Pricing Registration Rate

Early Bird

Regular

AIA Member

$725.00

$875.00

Non-Member

$1,075.00

$1,225.00

Speaker

$500.00

One-Day Pass

$575.00

Exhibitor Tabletop Display

Early Bird

Regular

AIA Member

$250.00

$350.00

Non-Member

$450.00

$550.00

Event Fees

Guest Fees

CIE for Credit: $50.00

Guest Meal Package $350.00

CLE for Credit: $100.00

Welcome Reception Guest Ticket: $95.00

Golf Tournament: $250.00

Closing Party Guest Ticket: $175.00

Clays Tournament: $250.00 Conference registration opens on Thursday, February 1, at 10:00 AM Eastern.

Thank You Sponsors As of January 24, 2024 Major Event Sponsors BAS Part Sales, LLC Beegles Aircraft Service, LLC Acrisure Aerospace Great American Insurance Group Kimmel Aviation Insurance Agency, Inc. QBE US Engagement Sponsors The ABC Program Aircraft Builders Council Amundsen Davis LLC Anderson & Riddle, LLP AXA XL Eiger Insurance Services Executive Flight Training Guy Carpenter & Co Ltd

Engagement Sponsors (Con’t) James A Gardner Company London Aviation Underwriters Preferred Aviation Underwriters W. Brown & Associates Function Sponsors Aeris Insurance Solutions BWI Aviation Insurance Agency King Air Academy Murray Morin & Herman, P.A. Platinum Patron Sponsors AIG Aerospace Applied Underwriters Aviation Cunningham Swaim, LLP Rosen & Schneider, LLC

Gold Patron Sponsors Beacon Aviation Insurance Services Dan Moore Aero LLC Global Aerospace London Aviation Underwriters Starr Companies Ruby Patron Sponsor Alliance-Compliance, Inc. Emerald Patron Sponsor Wilkes Atkinson & Joyner, LLC Silver Patron Sponsor CyTech Consulting LLC

agent/broker division

U.S. General Aviation admitted market: Summary of 2022 statutory financial results Carl X. Ashenbrenner, FCAS, MAAA, Principal & Consulting Actuary, Milliman, and S. Andrew Kline, Actuarial Analyst, Milliman

We are pleased to summarize key year-end 2022 financial results for domestic U.S. General Aviation (USGA) admitted market insurers. This review includes data from the “Aircraft (All Peril)” line of business within the statutory annual statement obtained from S&P Global Market Intelligence, along with other sourced information. We excluded insurers with surplus line eligibility or domestication, which comprise the majority of the market for U.S. large aviation risk, such as airline and major product liability. As a result, we believe the data we reviewed provides the best publicly available snapshot for the performance of the USGA market. We have compiled various metrics for the industry, categorized by:

s a note, “incurred losses” A within this report includes both loss and defense and cost containment expenses (DCCE). Additionally, we modified the admitted market’s incurred losses for select insurance companies that reported favorable development due to the takedown of reserves from the terrorist attack events on September 11, 2001 (9/11).

USGA written premium for 2022 The USGA admitted market reported $2.7 billion in written premium in 2022 (see Figure 1 on the next page). This is a 10% increase from 2021 and contributes to a 70% cumulative surge from the $1.6 billion reported by insurers in 2018. This growth period represents the largest increase in written premium for the USGA market since the era immediately following 9/11. The rising tide has yet again lifted most boats, as nearly 90% of admitted carriers who wrote at least $1 million in 2021 reported higher

• Written premium • Underwriting results • Incurred losses Reprinted with permission from the Milliman Report.

agent/broker division

Figure 1

top-line revenue in 2022. Furthermore, 45 states along with DC experienced a year-overyear increase in premiums written.

premium and rate increases were lower. Notably, the 70% premium growth over the last four years may actually understate the scale of increase, as some large USGA accounts that previously went to the subscription market may now be written in part by European insurers or via surplus lines capacity. Also, some major risk premium may be included in these amounts, and this may have increased between 2020 through 2022 due to the recovery in airline passenger movements.

The pace of premium growth is declining, however, with this year’s 10% rise coming on the heels of three consecutive years around 15%. Looking ahead to 2023 year-end results, we anticipate that this slowdown will continue. A review of second-quarter 2023 statutory financial data suggests that USGA premium volume could grow between 5% and 10% over the full year.

The USGA market has also seen significant increases in ceded premium to the reinsurance market over the past few years. Between 2004 and 2016, the market consistently ceded about 40% of its direct written premiums to outside reinsurers (i.e., excluding any pooling or other transactions within an insurer’s own group). The past five years have witnessed this ratio steadily climbing to 50%: consequently, the recent 70% growth in USGA admitted market direct written premium translates to a 54% growth rate in premium retained by the initial writing company (or insurance group).

Aviation insurers recently benefited from more significant increases in certain segments, like large commercial managed fleets, which were historically written on a 100% basis by one insurer and are now more commonly placed in the subscription market, where several insurers write a percentage of the policy. In certain other segments, like private business and pleasure (PB&P) and unmanned aircraft system (UAS), the

agent/broker division From a longer-term perspective, the post9/11 rate increases led to 14 consecutive years of underwriting profitability for the market (2002 through 2015). Thus, after nearly $700 million of losses between 2016 and 2020, the underwriting profits in 2021 and 2022 were a welcome reversal, showing that profitability is once again trending in the right direction for long-term sustainability and solvency. It should be noted, however, that the market’s 4% profitability level in both 2021 and 2022 (measured as a percentage of earned premium) lags materially behind the USGA admitted market’s post-9/11 historical average.

We suspect the growth in premiums ceded to outside reinsurers stems from a combination of unprofitability in recent years along with concerns over emerging claim severity as discussed below.

USGA underwriting results Reviewing the USGA market underwriting results over the last few years helps to explain the recent firming of the market. From 2016 through 2020, the market lost approximately $700 million on an underwriting basis (i.e., excluding investment income), as displayed on Figure 2.

Figure 2

In 2019 alone, the market lost nearly $300 million on $1.8 billion in premium. This period of unprofitability led to the recent rate firming, which in turn guided the USGA market to small underwriting profits in 2021 of $92 million and $100 million in 2022.

Underwriting expenses in recent years are higher across the board (see Figure 3, on the following page). Certain of these expenses — agent commissions, brokerage fees, and taxes — are tied to premium volume and help to explain the recent rise in costs. Increases to other acquisition and general expenses were more modest, however, which effectively

agent/broker division

Figure 3

Given that the COVID-19 pandemic caused a reduction in flight activity, it was expected that accidents in 2020 and 2021, and resulting claim costs, would have been significantly lower than losses in prior years.

reduced the underwriting expense ratio (as a percentage premium) during these past two years to levels that are four percentage points lower than the ratio experienced during the unprofitable years. A return to long-term sustainable profitability levels must therefore be centered around incurred losses.

Instead, the incurred losses in 2020 through 2022 provide further evidence that USGA claim costs continue to be a challenge for the industry. Rising incurred losses are caused by increases in exposure, claim counts, and/or claim severity, so which component is driving the losses?

USGA incurred losses in 2022 Incurred losses in 2022 were higher than all other recent years, continuing a trajectory that has witnessed losses more than doubling since 2014 (see Figure 4 on the following page). Over this period, the steady increase in USGA losses along with premiums that essentially held steady through 2018 led to loss ratios that were well above pricing targets. Figure 4 also shows loss ratios between 65% and 70% for the most recent two calendar years, which are improved from 2017 through 2020 but are still somewhat higher than years prior to 2014. This pattern mirrors the above discussion regarding underwriting results and profitability levels.

Exposure and claim counts Federal Aviation Administration (FAA) data1 shows that, while overall flight activity was lower in 2020 due to the pandemic, general aviation traffic recovered more quickly than the commercial airlines. This explains why an expected material drop in USGA admitted market incurred losses for 2020 and 2021 did not occur, although the rising costs issue remains.

agent/broker division

Figure 4

Assuming the 2020 nadir stemmed from reduced exposure, the slight uptick in fatalities and severe injuries in 2021 and 2022 is still materially consistent with the NTSB data’s long-term downward trend trajectory.

National Transportation Safety Board (NTSB) U.S. data2 shows that both fatalities and severe injuries have generally trended lower since 9/11 (see Figure 5, below).

Figure 5

agent/broker division Severity on liability claims

Focusing on 2014 and subsequent years (i.e., the period in which we noted incurred losses having more than doubled), NTSB data shows that U.S. fatality and severe injury counts are notably flatter than the long-term trend. The use of NTSB head counts as a proxy for liability-based frequency is reasonable, and this data suggests that the frequency of liability-based events is not driving the recent increases to incurred losses.

Claim inflation continues to be a problem for the insurance industry and the aviation market is not immune from these trends. Given the relatively high policy limits provided in certain general aviation segments, the risk of social inflation (e.g., an increased tendency to punish those who cause injury to others) is of particular concern. U.S. juries have been awarding significantly higher sums in recent years.

Figure 6

The median value of a single-fatality award by U.S. juries3 has gone from $2 million to $5 million over the last few years (see Figure 6 above), and of particular note is that the timing of acceleration in the chart mirrors the period in which USGA incurred losses saw rapid growth.

Besides liability, USGA policies typically cover the cost of repair or replacement of aircraft due to adverse weather events, such as hurricanes, tornadoes, hail, wind, and heavy snowfall. These hull claims certainly affect the market’s profitability (e.g., damage to dozens of aircraft at North Perry Airport in Florida stemming from 2022’s Hurricane Ian), but alone they do not explain the multiyear upward trend in incurred losses.

Insurers are also experiencing an increase in the frequency and severity of runaway

agent/broker division verdicts. The aviation market has not been immune to this trend either; with multiple nine-figure verdicts in recent years, including:

may be under-reserved based on recent claim trends. Changes in reserves on these claims are likely also having an impact on the 2022 profitability, as any adverse reserve development on claims in older accident years will suppress profitability levels in the current year.

— $116 million awarded to families of three crew members who perished in a cargo flight in Afghanistan4 — $148 million awarded to a person paralyzed at O’Hare Airport5

Severity on hull claims Newer-generation aircraft are made with composite materials that are much more expensive to repair than aircraft of previous generations. They require proprietary bonding techniques and specialized equipment that significantly reduce the number of entities with the expertise to make the repairs. Recent inflation, labor shortages, and supply chain issues have impacted the aviation industry as well. Figure 7 below displays the monthly increase in aircraft costs relative to 12 months prior.7

— $352 million awarded to a United Airlines employee paralyzed at George Bush International Airport6 These judgments have had a spiraling effect, with past verdicts leading to routinely higher demands by plaintiffs, and increased costs of settlements. Some of the claims that are impacted are those that have occurred in the last few years. These claims had previously been reserved using historical loss values but

Figure 7

agent/broker division USGA market: Looking ahead to 2024

Sources 1 FAA data retrieved September 18, 2023, from https://www.faa.gov/data_research/ aviation_data_statistics/general_aviation/ and from https://www.faa.gov/air_traffic/ by_the_numbers/media/Air_Traffic_by_the_ Numbers_2023.pdf.

The USGA insurance market has been very competitive for a number of years, with USGA policyholders benefiting from reduced premiums and competitive rates up until around 2019, at which point rates in the market began to harden.

2 NTSB accident data retrieved September 18, 2023, from https://data.ntsb.gov/avdata/. 3 Source: Advisen, a Zywave company.

Even with the substantial increase in premium achieved over the last few years, the 2021 and 2022 calendar years reported only a small underwriting gain. A number of factors such as increasing severity trends and the broader liability environment continue to be significant challenges for insurers. We expect these factors will likely extend into the near future. Taken together, our analysis indicates that the USGA insurance market is heading in the right direction but needs to continue to increase premiums to return to historical levels of profitability.

4 Nolan Law Group ( June 30, 2017). Jury Awards $115.75 Million to Families of Flight Crew Killed in Afghanistan Cargo Plane Crash. Retrieved October 29, 2022, from https://www.prnewswire. com/news-releases/jury-awards-11575-millionto-families-of-flight-crew-killed-in-afghanistancargo-plane-crash-300482616.html. 5 Wojciechowski, C. & Orlando, T. (August 24, 2017). Jury Awards $148M to Dancer Paralyzed in O’Hare Shelter Collapse. NBC 5 Chicago. Retrieved October 29, 2022, from https://www. nbcchicago.com/news/local/verdict-reachedin-case-of-dancer-paralyzed-by-ohare-sheltercollapse/22562. 6 Langford, C. (October 26, 2021). Texas jury awards $352 million to family of paralyzed airport worker. Courthouse News Service. Retrieved October 29, 2022, from https://www. courthousenews.com/Texas-jury-awards-352million-to-family-of-paralyzed-airport-worker/.

Reprinted with permission from the Milliman Report.

7 Source: Federal Reserve Bank of St. Louis; see https://fred.stlouisfed.org.

london highlights

AIA in London The AIA returned to London for two days of meetings, education, and networking in early November. Thank you to everyone who participated in our London programming, including our dedicated Board of Directors, Core

Principles instructors and students, and the over 150 aviation insurance professionals who joined us for our industry reception. See highlights from AIA’s activities in London on the next few pages. For a full photo gallery, visit the AIA website.

Strategic Planning Meeting

london highlights Board of Directors Meeting

Core Principles & Concepts Course

Industry Reception

london highlights

Current AIA President Chris Morin with Past Presidents David Binks (2002–2003) and Greg Sterling (2021–2023).

thank you, sponsors

A special thank you to the Guy Carpenter team for their event assistance: Abigail Allchorne, Lisa Berlie, Hannah Marsh, Chloe Marks, and Kelly Wix.

international

AAM Insurance: A Call to Action Katherine Ayre, CEO and Aviation Lawyer, CAYRES Inc. and JR Hammond, Executive Director, CAAM: Canadian Advanced Air Mobility Consortium

Progression of Advanced Air Mobility

A new global enterprise begins with a select few meeting informally to solve a challenge, the success of which they recognize will profoundly impact their communities both locally and internationally.

The first governing body for aviation in the world was organized in Canada with the formation of the Air Board in 1919. The first aircraft liability policy was delivered that same year. The original insurers and regulators could not have imagined that 87 years later a new aviation model would emerge when, in 2006, the FAA issued the first commercial permit for an unmanned air vehicle (UAV). Years of technological and operational advancement then followed, with drone safety measures rolled out by the FAA and Transport Canada in 2017. While the UAV market developed, there were approximately six early entrants in the electric Vertical Take Off and Landing (eVTOL) market1 all vying for a podium within the same lower-level airspace.

Word then spreads amongst like-minded people in service to one another, who are drawn together with a shared mission and purpose. Advanced Air Mobility (“AAM”) insurance is that global enterprise of today. AAM was born out of the aviation industry’s vision to supply equitable, economical, carbon-neutral transportation of goods and people. It is the nexus of aviation and technology, providing mobility as a service. So how do we assemble the insurance and regulatory leaders to address a complex aviation challenge? We start with Canada, the United States, and the United Kingdom.

Regulations and insurance solutions in the UAV market matured until the year 2020 when global travel came to a halt, though aviation innovation did not.

international

AAM Insurance ThoughtLeadership Project

Through Special-Purpose Acquisition Companies (SPACs) providing capitalraising flexibility, the eVTOL market prospered. In January of 2021, world passenger traffic fell by 72.5%,2 whilst investment into eVTOL startups more than tripled from the previous year and went up to $3.8b in the first quarter of 2021.3 There are now over 919 different eVTOL concepts, and no shortage of market predictions.

In 2019 the National Research Council Canada (NRC) co-founded the federal Canadian Advanced Air Mobility (CAAM) not-for-profit consortium. It is CAAM’s mandate to expedite Canada’s transition to zero-emission aviation by facilitating partnerships between government, industry, and academia, as well as national Liftoff Projects that lead to tangible results. One such project is the AAM Insurance Thought Leadership Project. However, AAM insurance cannot be considered through a siloed-Canadian lens, given the importance of the United Kingdom and United States to this work. In recognition of the need for global dialogue, CAAM partnered with CAYRES, and then interviews and meetings began in earnest with those global insurance players who signaled an interest in AAM leadership.

A new global enterprise begins with a select few meeting informally to solve a challenge

AAM will benefit our communities, provided the vehicles, their operations, and infrastructure receive coordinated insurance-regulatory support. The first call to action in organizing the insurance response to AAM came from Canada, where air governance first started.

international Your Role is Important

Katherine Ayre is an aviation and municipal law attorney; mediator, glider and commercial pilot (fixed wing). As the first Canadian lawyer to merge municipal risk and aviation law into a single practice, she saw a need within the AAM market and founded CAYRES Inc. CAYRES is the global agency for AAM regulatory, project and risk management.

AAM public acceptance and market confidence requires insurance leaders (in aviation and multiple lines) who are willing to visibly lean into a new space. There is market precedent with the UAV-insurance partnerships starting in the mid-2000s, but also even earlier. We have 127 years of learnings since the insurance industry responded to advancements in propulsion technology from horse-drawn to internal combustion engines (ICE) that changed the way we move and live.

JR Hammond is the Executive Director of CAAM, the Canadian Advanced Air Mobility Consortium. CAAM is a federal not-for-profit acting as the catalyst for the new AAM industry in Canada. JR is also the Managing Partner and founder of Vancouver-based Rhizome Aero, which is Canada’s first zero-emission aviation fund uplifting environmental, social and inclusivity investments.

Now we are transitioning from ICE and traditional UAV systems to aircraft incorporating new propulsion systems, AI, advanced composites, autonomous navigation, and engagement with multiple levels of government for lower altitude flights.

The AAM Insurance Thought Leadership Project will be presented at ICAO’s first AAM Symposium (AAM 2024). If your company is interested in participating in this important work uniting aviation, please reach out to kayre@cayres.ca or jr@canadianaam.com.

If you are reading this with interest, then you intuitively recognize that you and your organization are all important to the mission of ushering in an entirely new Total Addressable Market. It is through your collective insurance industry intelligence and precedents that AAM and its value chain will see success. It was only 65 years between the Wright Flyer and the first flight of the Concorde. Imagine what can happen for AAM and our communities when those with a forward-looking mindset, the right policies, and the right knowledge heed the call to action to lead and effectively collaborate.

Sources 1. Joby, Volocopter, eHang, Lilium, Archer, and Vertical Aerospace. 2. I CAO Economic Development MAR 2021: AIR Transport Monthly Monitor at www.icao.int. 3. Pitchbook Q2 202 Analyst Note: The eVTOL Air Taxi Startup Handbook at https:// pitchbook.com.

co on the mind

Carbon monoxide in the cabin — a dangerous passenger Steve Gunson, Aviation Insurance Broker, Marsh McLennan Agency

Like all good pilots, I pay attention to things like other traffic, weather, and engine gauges when I fly. But one thing that was not on the top of my priority list was carbon monoxide (CO) poisoning. Does that make me a poor pilot? If so, I’m one of tens of thousands who were unaware of the dangers of CO poisoning in aircraft. The fact is, carbon monoxide is a harmful passenger and a danger you shouldn’t dismiss.

you may begin to feel symptoms that are often dismissed as fatigue, including a slight headache and drowsiness. As your exposure increases, the headache worsens and your judgment becomes impaired, causing confusion and loss of coordination. Dizziness will often set in, to the point of uncontrolled sleep, and eventually you may lose consciousness. As little as 10% of CO in your blood can affect your cognitive ability, vision, and other bodily functions. Over 50% can cause permanent organ damage and death.

How CO poisoning occurs You are probably aware of the dangers of CO poisoning in your home, but you may not know how it can affect you while flying at higher altitudes. Carbon monoxide is an invisible and odorless gas that is produced in high concentrations when the fuel mixture is richer than peak exhaust gas temperature (EGT). If you use your heater, you’re likely running fresh air right over the muffler before it enters the cabin. If your muffler has any holes, a crack, or even loose fittings, the air coming into the cabin could contain elevated levels of carbon monoxide.

Detecting CO in the cabin Carbon monoxide detection is not currently required in general aviation by the Federal Aviation Administration (FAA). However, the National Transportation Safety Board (NTSB) has called for the use of CO detection in GA aircraft after recording 31 accidents between 1982 and 2020 attributed to carbon monoxide poisoning, 23 of which were fatal. Until recently, there was no device that could report and log CO poisoning events and accumulate the data. Fortunately, solutions for detecting this deadly gas have been available for several decades, and the choices and technology are only getting better.

You won’t smell anything out of the ordinary if CO is entering the cabin. As the parts per million (PPM) of CO rises and your exposure to this gas continues,

co on the mind There are several options for detecting CO in the cabin. One option is a small square placard that can be placed on the panel, but it can take up to 45 minutes to indicate CO in the air and must be changed every 90 to 120 days. Another option is a portable CO detector, which is compact, accurate, and usually has a real-time digital readout. Manufacturers have also developed CO detectors that can be installed in the panel, including a model that fits into an available 2.25 gauge and includes a flashing LED light and an 85 dBA alarm when CO is detected.

Another option is the Lightspeed Delta Zulu headset, which can detect CO in the cabin and give an audio alert. Used with the Delta Zulu headset, the Lightspeed smartphone app displays PPM levels in real time. Through this app, pilots can contribute to a pool of data on CO poisoning in aviation by opting to share data collected by the headset’s built-in CO detector. This can help accumulate and identify CO poisoning events in aviation and potentially save lives.

While visual alertness is effective, an audible alarm can be a better attention grabber. There are portable units with audible alarms, but they may not be heard in a loud cockpit with headphones on. Some portable units can function while plugged into an onboard USB port.

What to do when CO is in your cabin Whether you’re alerted of high CO levels by a monitor or the physical symptoms, you need to get fresh air and land the aircraft as soon as possible.

co on the mind By the time you detect symptoms, you’ve exceeded 10% CO in your blood. Here are some tips to help you return safely to the ground:

• A fter landing, it may be wise to seek out medical attention because CO from prolonged exposure can linger in the body and cause long-term damage.

• Turn your heater off! That hot air coming from your muffler may be the source of the problem.

Learn more about carbon monoxide in aviation If you’re a member of the FAA Wings program and would like to receive Wings Knowledge Credits for learning more about carbon monoxide in the cabin, Dr. Greg Ricca presents on this episode of Wings Insights.

• Don’t hesitate to notify ATC of your situation. They can keep the airspace clear for you and help with procedures that may seem complex if you are suffering from the effects of exposure. • If it’s safe to do so, get out of thin air by descending into more oxygen-rich air. Also, start using supplemental oxygen onboard if you have it. • Open vents or windows to flush out the toxic air in the cabin.

“There’s simply Gunson is an aviation insurance no substitute Steve broker with Marsh McLennan Agency for experience in Boise, Idaho. For 20 years, his flying experience has been largely in terms of based in the Pacific Northwest and Alaska. aviation safety.” One of Steve’s claims to fame

Chesley “Sully” Sullenburger is being able to fly to his clients and taxi right up to their operations.

safety report

WHAT PILOTS DON’T KNOW MAY HURT YOU Tom Norton, President, Norton Aviation

In December 2022, the crew of a chartered Embraer Phenom 300 calculated the distance required to land on the planned runway as per the Airplane Flight Manual (AFM) and the FAA regulations. They did everything correctly and flew a normal approach to a landing that went off the end of a wet un-grooved runway, substantially damaging the aircraft. What they didn’t know was that the manufacturer’s wet landing distance data published in the AFM was not based on reality or flight test data.

737 went off the end of the runway at Midway airport. This accident prompted the FAA to convene the Takeoff And Landing Performance Assessment (TALPA) rulemaking committee consisting of aircraft and airport operators, aircraft manufacturers, and the FAA and its counterparts. In the years that followed, the TALPA committee discovered significant gaps in information needed for pilots to determine whether a safe landing can be made. Namely:

This story is not uncommon. In its 2022 Safety Report, the Flight Safety Foundation stated, “Runway excursions were, by far, the most common accident type in corporate jet operations in 2022 and throughout the period under review” (2017–2022). Some of the runway excursions were fatal and most caused substantial aircraft damage or hull loss. This significant effect on insurance claims can be preventable with just a little education to pilots and operators from readily available free resources.

• There was no standardized way for pilots and operators to determine the runway condition at time of arrival and therefore predict braking action. • The AFM’s FAA-approved dry landing distances are derived by the manufacturer using the most aggressive flight test landing data with maximum braking effort. In other words, the “unfactored” AFM landing distances used by pilots to predict landing performance do not account for normal pilot landing techniques (i.e., executing a flare, speed additives, time delay for braking, and normal braking). In addition, the FAA does not require nor

An organized effort by aviation safety organizations to reduce runway excursions started in 2005 when a Southwest Airlines

safety report need to approve the wet and contaminated AFM published landing distances during aircraft certification. Some manufacturers voluntarily include them in their FAA AFM because another regulatory organization (like EASA) requires them. Unfortunately, those wet and contaminated landing distances are not flight-tested and are derived using a theoretical multiplier to the unfactored dry distances. They usually do not represent real-world conditions, especially when landing on un-grooved runways.

mentioned above. The AC introduced — and the FAA implemented — the Runway Condition Assessment Matrix (RCAM) that is now the standardized way airports report the runway condition to pilots. When the runway is other than dry, the tower publishes three runway condition codes (RwyCC-0 thru 6) representing the condition on each third of the runway. AC 91-79 also introduced a tool for pilots to better predict their actual landing distance using the tower-reported runway condition codes above to come up with a more realistic multiplier to the AFM dry landing distances called “Landing Distance Factors.”

Due to the efforts and recommendations of the TALPA committee, in 2014 and 2015 the FAA published Advisory Circulars AC 91–79 and AC 25–32 respectively.

If the crew of our Phenom 300 example could have referenced this table, they would have calculated a landing distance greater than what they had available.

AC 91-79 “Mitigating the Risks of a Runway Overrun Upon Landing” is aimed at operators and pilots and provides solutions for the two main TALPA findings

safety report Runway Condition Assessment Matrix (RCAM)

landing distance factors

safety report AC 25-32 “Landing Performance Data for Time-of-Arrival Landing Performance Assessments” is aimed at the aircraft manufacturers. It provides guidance and standardized methods for AFMs to contain more realistic operational landing distances based on the RCAM’s runway condition codes, weather, slope, elevation, speed, and pilot landing technique. Unfortunately for pilots, this AC is not regulatory, and manufacturers can use it to publish new operational landing data or choose to ignore it.

Runway overruns are still happening today and can be dramatically reduced with education from many free resources. The NBAA has just published Reducing Runway Excursions in Business Aviation, which is a more comprehensive guide to preventing runway excursions than this article. Please educate your clients to the information available and let’s reduce the current number one cause of accidents by keeping aircraft on the runway. Tom Norton is the president of Norton Aviation which specializes in light-jet pilot training. Tom is an instructor and Designated Pilot Examiner (DPE) in the Eclipse 500, the Phenom 100 and 300, and Praetor 500/600. He serves as a member of the AIA Safety Committee.

For our Phenom 300 example, the manufacturer did publish new operational landing data that would have indicated to the pilot (if referenced) they did not have enough runway to land, but unfortunately it was published days after the incident.

Board of Directors President Christopher S. Morin

Director, Reinsurance Division Raffaella Basile

Vice President Ian Wrigglesworth

Director, Underwriter Division Jeff Sutton

Secretary Luke Uithoven

International Director Andy Trundle

Treasurer Nicole Wolfe Stout

Director-at-Large Chris Arnold

Director, Agent/Broker Division David Hampson

Director-at-Large Wes Collier

Director-Elect, Agent/Broker Division Kristen Suarez

International Director-at-Large David Watts

Director, Attorney Division Michael McGrory

Immediate Past President Greg Sterling

Director, Claims Division David Gourgues

AIA General Counsel Bob Williams

Director-Elect, Claims Division Jeff Sheets

Executive Director Mary Gratzer

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

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

Guy Carpenter London, United Kingdom ian.wrigglesworth@guycarp.com

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

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

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

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

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

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

Old Republic Aerospace Kennesaw, GA wcollier@ORaero.com

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

Everest International, Everest Insurance London, United Kingdom david.watts@everestglobal.com

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

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

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

Victor Rane PLC Pittsburgh, PA rwilliams@victorrane.com

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

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