Binder Vol.42 No.1 Spring 2017

VOL. 42 NO. 1 - SPRING 2017

THE BINDER MARKET CYCLES AND COMPETITION CYBER RISK IN AVIATION

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IN THIS ISSUE Editor Nigel Wright

XL Catlin nigel.wright@xlcatlin.com

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President’s message

AN INVESTMENT IN YOUR FUTURE

AIA EDUCATION FOUNDATION SUPPORTS WATTTLES FELLOWSHIP

CYBER RISK IN AVIATION

EAGLES SOCIETY

AIA ANNUAL CONFERENCE

2017 CORPORATE MEMBERS

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MARKET CYCLES AND COMPETITION

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.

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Published by the Aviation Insurance Association 7200 W. 75th St. Overland Park, KS 66204

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t was around this time 2 years ago, when I was asked, conversationally, what I wished to achieve during my upcoming term as President.

It was the first time that I had actually given any thought to it, and my initial inclination was that my ultimate goal was not to screw up!

But I quickly realized that, as a strapline, however carefully crafted, it would seem very negative and somewhat selfish. So, it set me thinking properly about what aspirations I could have for the future and what did I want to achieve as President? Following the inspirational vision and energy of Frank Kimmel and the wisdom and passion of Franklin Bass, I was determined to keep the momentum going of redefining and enhancing the membership experience. With the number of initiatives that are currently underway I feel reassured that things are moving forward in a dynamic way.

My real penchant is education and I was very pleased to be in a position to support and encourage the development of our new educational program under the leadership of our 2016 Pinnacle Award winner, Doug Johnson. Plus, we have also seen a much-needed and imaginative revitalization of the Education foundation under the extremely able chairmanship of Alan Smith.

As a non-profit association, we are not under the same pressure, as many of our members, to grow our revenues significantly year on year in pursuit of improved margins. But, even so, we do need to have a strategic plan for the future; and growth considerations, both financially and in the provision of member services, are an important

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element of this. You won’t be surprised that one of the most regular topics on our Board agenda concerns membership growth. It’s not just a question of how we grow, but also of should we grow, and, as always, we welcome the input of the wider membership into this debate. The ‘should we grow’ question is predicated by the feeling, of some, that our conference attendance is at an optimum number. They point out that even at our current level of attendees our hotel options are becoming limited and that if we were to grow too much bigger we could find ourselves limited to Las Vegas or Orlando as venues every year.

Great places that I always enjoy visiting but not every other year and not at the cost of going to even nicer places like San Diego!

The discussion then turns to the question of ‘if we are going to grow who are our target prospective members?’ Do we look at other sectors of the market that are currently under-represented, such as the airlines? Do we try and grow internationally and engage with the Asian, African and Australasian markets? Again, we welcome the views of all.

Anyway, we have a great conference to look forward to this year at the iconic Hotel Del Coronado, San Diego’s legendary oceanfront beach resort, which has been captivating imaginations for over 128 years.

We have an impressive cast of keynote speakers including Burt Rutan, the Aerospace entrepreneur and legend as our lunchtime speaker; Mark Baker, President of the Aircraft Owners and Pilots Association (AOPA); Dr Scott Shappell, Professor and Chair, Department of Hu-

man Factors and Systems, Embry-Riddle Aeronautical University; and our Insurance industry speaker, John Kuhn, the Chief Executive Officer, Global Insurance at Endurance, a recent new significant force in the aviation insurance market.

In addition, we have the Continuing Insurance and Legal Education sessions and also the Divisional get-togethers.

But beware! If you find the allure of the beach too irresistible and choose to lie on a sun lounger instead of attending a session you risk being spotted on the Live Beach Cam by your colleagues back at the office!

As usual, there is also a superb range of networking events to allow you to meet up with old friends and make some new ones. The highlight is our Monday night Beach party at Hotel Del. The spectacular AIA band will be back by popular demand to make an appearance, so pack your best pair of flip flops and get ready to keep dancing and partying until the Hotel orders us to stop!

Although, undoubtedly, at the end of the conference there will be a tear in my eye as I hand over the presidency to Paul Herbers, I couldn’t wish for a better successor. I have worked with Paul on the Board for a number of years and have admired greatly his level-headedness and easy-going manner together with his keen intellect. I know he will

prove to be an excellent President and I wish him and his wife, Beth, a most enjoyable 2 years.

For my part, I am deeply indebted to a whole number of people who have assisted and supported me throughout my 2 years.

To Mandie, Elton and the rest of the Oynx team, who make matters so easy for me and have run everything so smoothly; to my board colleagues, for their hard work, commitment and wise counsel. I value greatly the camaraderie and the lifelong friendships I have been lucky enough to make; to my work colleagues for their backing and encouragement and also their willingness to cover for me when I am immersed in AIA issues; and finally a big thank you to Karen, my wife, for her unequivocal support. Karen metaphorically rolled up her sleeves from day one and has been firmly by my side throughout. So successful has her involvement and socializing been that even in AIA circles, as President, I seem to be far better known simply as ‘Karen’s husband’!

So, enjoy San Diego, enjoy the conference and make the most of the superb networking opportunities and, please do take a quick peek at the Hotel Del beach webcams to glimpse the breathtaking scenery that awaits.

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Investment In Your Future JOE Suarez - CPCU, CLU, ChFC, AIC

National Director – Risk Management Beacon Aviation Insurance Services

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repare for tomorrow by investing in your future today! I’ve spent most of my professional career in insurance, accumulated several designations, and attended countless number of educational seminars. I thought I knew most everything there was to know about the insurance industry until I attended the newly developed Aviation Insurance Core Principles and Concepts course. While my background is predominately workers’ compensation, I had a strong desire to gain a better understanding of the unique aviation market as a whole in hopes of preparing my company and myself for future success.

ration led the course. Right away, I could tell the instructors had a deep understanding of the subject matter and were enthusiastic about sharing their lifetime experiences. The material was presented in a well-paced manner that kept me engaged and held my interest. We were treated with entertain-

When presented with the opportunity to spend a weekend attending this course, there was no hesitation on my part. Going in, I anticipated the class would be your typical insurance course filled with long lectures and dull topics; however, I quickly discovered this would be a far different learning experience.

ing stories that enriched the subject matter and left me wanting more.

“An investment in knowledge pays the best interest.” ~Benjamin Franklin~

Passionate, knowledgeable industry experts who created an atmosphere of excitement and collabo-

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Prior to attending the class, I spent some time reviewing the textbook finding the material to be well organized and easy to understand. The text is written by a host of distinguished and respected members of the aviation insurance community, which gives significant credibility to the course.

Perhaps what I liked the most, was the interaction and collaboration with my classmates.

There were professionals from all walks of the aviation world.

We were given ample time to engage in sidebar dialog, which brought real-world examples to the topic of discussion. We truly learned from each other and established business relationships that will carry into the future.

relevant and ahead of the curve. The consumer is becoming more savvy in our “at your fingertips� information-based society and has a thirst to do business with industry experts and knowledgeable professionals who remain up-to-date and strive to think outside the box. The Aviation Insurance Core Principles and Concept course is a great way to fulfill this objective.

In today’s competitive environment, advanced learning is essential to remain

Let me not forget to mention the all important and ever dreaded EXAM at the

end of the course! Even though it was challenging, the material was presented in a manner that completely covered the information needed to ensure success. As an added bonus, 16 Continuing Education credits are earned AND gets you one step closer to the CAIP designation.

Whether you are considering this course for yourself or your associates, the time and money spent is well worth the investment.

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AIA Education Foundation Supports Walter C. Wattles Fellowship As part of the efforts of the AIA Education Foundation, the Foundation supplies additional financial support to the Fellows who specifically work in an Aviation Insurance related field. Below is a letter written by the three recipients who earned the Walter C Wattles Fellowship.

The AIA Education Foundation provided additional financial support of USD $2,500 each to 2 of the 3 recip-

esteemed reputation, we were welcomed with arms wide open, and we surely will never forget how special that is. Whether it was learning the lot of the London insurance industry, meeting anyone and everyone, or simply finding our way around the market, we went head first in.

ients.

With the three of us each filling a different role in the insurance market-Mary Alice as an account handler in Willis’ North American property team, Rachel as a part of the aviation team assisting underwriters on the box at XL Catlin, and Grace as a junior broker in JLT’s aerospace division we have been able to help each other and learn from the others’ experiences. It is nearly impossible to put into words the amazing nature of this fellowship, as there is no way to adequately describe the awe you feel every time you walk into Lloyd’s to be surrounded by thousands of people rushing to finish placing and writing risks. We are especially grateful for the apparent trust and energy that our teams have invested in us.

It seems impossible that the three of us landed in London nearly six whole months ago. It would be naïve to say that we weren’t scared out of our minds. Work, the flat, and an unfamiliar city, uncertain thoughts clouding our fresh-out-of-Vanderbilt heads. But wow, how our expectations have been wildly surpassed. We are so incredibly grateful for the Wattles Fellowship, and all of the exciting experiences and relationships that it has provided us with. It blows our minds that you all at home are currently in the process of choosing three new fellowship girls-my how time really does fly!

Judging even just from our first day, when we arrived and were greeted by dozens of our new co-workers, we knew how lucky we were to be participating in something so unique. Adjusting to a life in London was made easier by the incredible Wattles support network in London and at home-from finding the most efficient ways around the city, to relying on guides to find the best restaurants in town, to navigating the crazy world of Lloyd’s of London. Due to the Fellowship’s

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Our days are filled with lunchtime curries and sausage rolls with our favourite underwriters and brokers, evening drinks and market parties with our co-workers, coffees with our mentors and line managers, and of course daily visits to Lloyd’s. Additionally, we have been lucky to meet up with more than a few of the past Wattles girls as with more than a few of the past Wattles girls as they have travelled over on both business

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trips and on holiday to visit old friends. It is reassuring to know that the bonds of the Fellowship nowhere near end once the year in London ends, they last forever. Although we are already devastated that we have to leave in six months, we take it in stride because we have taken advantage of every opportunity that has come our way. But most importantly, we are comforted by the fact that we have become part of this special Wattles family that will be cherished forever. From weekend trips to France and Scotland, to birthdays in Greece and Italy and traveling with friends and family alike, we have taken full advantage of becoming (temporary) European citizens. With the holidays right around the corner, we are recuperating from hosting our extravagant Thanksgiving party with our teams and other London friends, and we are warming up for the many Christmas festivities the market has in store for us. Braving the city in the plummeting temperatures comes with getting used to hearing the Brits complain about the weather, which we now (unfortunately) identify with.

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We will undoubtedly hold on to this year in London forever-but for now, we are ready to enter the New Year to see what exciting adventures await us!

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By Alex Wells February, 2017

Sending all of our love, Mary Alice, Grace and Rachel

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cyberin risk aviation JOHN BAYLEY - Regional Director - McLarens Aviation first published on www.postonline.co.uk

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ollowing a handful of incidents - including an attack on a Polish airline’s ground computer systems which resulted in the grounding of 1,400 passengers at Warsaw airport - the risk of cyber attacks to aviation is an area that the insurance market is keen to better understand. So, what are the risks and what is being done to reduce them?

Aviation is driven by IT and cyber risk is of interest in every aspect of operation whether it be ground based services, reservations, or air traffic management systems. As an industry, the fragility of computer systems is as well known in the offices and support functions in aviation, as it is in every walk of life. The difference between aviation and a typical business is the level of backup systems for data and manual reversion techniques in use on a regular basis. Indeed, there are major

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airports around the world using paper sliders in Air Traffic Control because it is such a proven and time-tested method.

The same applies to having pilots at the front of an aircraft.

The risk of penetrating a critical system such as aircraft controls – perhaps the biggest concern for the public - is currently miniscule, but is one that will be changing and ongoing as technology continues to evolve. For example, the latest drives for efficiency include technology such as Electronic Flight Bags (EFB’s), enhanced in-flight entertainment, wi-fi and air traffic control all of which provide hackers with potential targets.

At present, however, the nature of communication between the ground and air means that the aircraft’s operation systems are secure. There is a strict meth-

od of updating the computers operating the aircraft and they are not updated during flight mode. The feedback procedure within aircraft operations is itself a very safe way of ensuring that the aircraft does not step outside of the acceptable parameters without being cross checked, or corrected by other processors waiting in the background and monitoring the activities.

The systems and processes for updating software also greatly minimise the risk of an external hack. Maintenance staff are responsible for ensuring that software updates are applied to the computer systems and on modern aircraft, the use of CD and DVD uploads into a common data loading and configuration system is widespread. Typically, these CDs and the

DVDs need to be recognised by the aircraft’s on-board laptop computers, or the specifically provided maintenance computers used by engineering personnel.

The software-updating task can only be undertaken and signed for by qualified engineers who perform the actions but have no influence on the content being uploaded.

There are some specific areas of concern that have been flagged in recent years such as potential for access via the cabin communications system. This is overstated because although connected to the aircraft for moving map and aircraft position data, the cabin system does not have the ability to communicate with any aircraft operating system.

About McLarens Aviation: McLarens Aviation is a leading provider of loss adjusting, survey and risk services to the global aviation industry. Clients include the aviation insurance market, aircraft operators, airports, maintenance and repair organisations (MROs), financiers, lessors, oil and mining companies, law firms and regulators. It has a team of over 80 in-house aviation specialists, operating across 31 offices, in 22 countries across the globe and manages in excess of 3,500 insurance related assignments each year.

Team members from McLarens Aviation’s USA and London offices will be attending the 2017 AIA Annual Conference in San Diego.

Contact: Bill Garcia – Regional Manager USA https://mclarens. com/mclarens-aviation/

Similarly, the new Electronic Flight Bag (EFB) – designed to save weight and provide an almost endless source of accessible and searchable data in one place, easily accessible and searchable – is also designed to minimise such risks. Each EFB needs to be approved for the phase of flight on which it is being used and with the widespread acceptability of units such as the tablet for use on a flight deck, the interface with aircraft systems is very limited and controlled. The ability to input data from an iPad into an aircraft system requires both to accept the functions and inputs. Without the full cooperation of both parties this transaction cannot take place.

At the same time, industry stakeholders including operators, manufacturers, regulators and international bodies such as the International Civil Aviation Organisation (ICAO) are all working on threat reduction efforts. These range from the development of protection strategies to ‘penetration testing’ of aircraft systems with manufacturers even employing ‘hackers’ to test the resilience of aircraft systems. For now, at least, the risk of a cyber attack endangering life remains extremely low.

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Market Cycles and

Competition alexander t. wells, ed.d - aia education consultant

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ver the years, I have heard many agents and brokers bemoan the fact that premium rates on virtually all classes of aviation insurance continue to deteriorate. President David Sales touched upon this subject in his remarks in the fall 2016 edition of the Binder. Unfortunately, this phenomenon has been around at least since the post WWII period when the world recognized the potential of civil aviation. The insurance industry was caught up in the enthusiasm and prepared for the risks inherent in the new wave of aviation insurance. New competitors entered the market, rates dropped and the accident record in the immediate post WWII period was deplorable. This will be the subject of my next article that will discuss accident history in general aviation and how it has affected rates over the years.

To understand the market today, we have to go back to the 1960’s. It was a time of expansion, modernization, and increasing complexity in all segments of the aviation industry. General aviation manufacturers were having a heyday introducing new models and producing an average of more than 9,000 airplanes per year. Four airplanes in particular that were introduced in the 1960’s; The Cessna 172, the Piper Cherokee, the Beech King Air 90, and the Lear 23, proved to be bell-weather designs for years to come. The general aviation fleet almost doubled during the 1960’s and new aircraft shipments hit a high of 15,768 units in 1966.

The expansion of all segments of aviation continued into the 1970’s. More airplanes were sold during this decade than before or since. The general aviation aircraft fleet increased from 76,500 in 1960 to 131,700 in 1970. Production hit a high of 17,811 aircraft in 1978. New aircraft were introduced in record numbers, particularly trainers such as Piper’s, Cherokee and Tomahawk Models, Cessna’s 150 and 152, Beech’s Sierra and Sundowner, to name a few. By 1980’s the general aviation fleet size had almost tripled in size to 211,000. Fixed-Based Operators (FBOs) numbered around 11,000.

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However, there were some clouds on the horizon. Fuel prices soared during the 1970’s and manufacturers looked to more fuel-efficient aircraft for the future. Airspace congestion was another problem that the industry had been studying since the mid-sixties. As a result, the Airport and Airways Development Act was passed in 1970 to provide the revenue needed to expand and improve the airport/airway system over a 10-year period. The industry was faced with ever-increasing federal regulations during the 1970’s. Terminal Control Areas were introduced around the country’s busiest airports which required two-way communications with Air Traffic Control, VOR navigation capability, and altitude-reporting transponders. Increasing regulations particularly impacted the pleasure pilot.

Historically, the general aviation industry had paralleled the economic cycle of the national economy. The 1980’s proved to be an exception to that analysis. In the early 1980’s, general aviation followed the rest of the economy into a recession.

Interest rates were at an all-time high when the new administration took office in 1980. Everything from housing starts to durable goods sales including auto and general aviation

aircraft sales plummeted. The economy rebounded in 1983 but general aviation did not. In fact, the number of general aviation aircraft delivered fell from a high of 17,811 to as low as 929 in 1994.

No doubt high interest rates, the ever-increasing cost of new aircraft with relatively few design changes since the 1970’s, higher fuel and other operating expenses including maintenance and hangar charges, and the availability of used aircraft all had an effect on new aircraft sales. Other analysts cite changing tastes and preferences among the traditional business and pleasure aircraft users as contributing to the decline during the 1980’s. Interest in sports cars and boats which require less training and recurency seemed to have peaked during the 1980’s. Passage of the Airline Deregulation Act of 1978 had lessened the need for corporate aircraft as new upstart and commuter carriers entered the market. Another financial pressure working against aircraft ownership took place in 1986 with the passage of the Tax Reform Act which eliminated the ten percent investment tax credit. Finally, the foreign aircraft manufacturers had entered the traditionally American-dominated market in a much bigger way during

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the 1980’s. Many FBOs went out of business, merged, or drastically scaled back their operations. By the mid 1990’s there were only approximately 3,000 remaining.

Many aviation insurers rode the tide of expansion during the upward cycle of the market from the 1950’s to the 1970’s.

Companies like Airway Underwriters, Omni Aviation Underwriters, International Aviation Underwriters, Aviation Office of America, Liberty Mutual, Universal Aviation Underwriters, Ohio Casualty Company, Crump Aviation Underwriters, Pacific Aviation Underwriters, Southeastern Aviation Underwriters, Southern Marine and Aviation Underwriters, and National Aviation Underwriters joined the market or expanded their regional offices. These groups and companies joined the well-established underwriters; United States Aircraft Insurance Group (USAIG), Associated Aviation Underwriters (AAU), Insurance Company of North America (INA), and Royal-Globe.

Direct writer, National Aviation Underwriters, formed as a reciprocal exchange in 1945, merged into Avemco in 1985. Earlier, Avemco had taken over the business of American Mercury when AOPA members decided to form a new market. HCC Holdings subsequently acquired Avemco and now writes its aviation insurance through Avemco, HCC Casualty Aviation, and U. S. Specialty Insurance Aviation.

Southeastern Aviation Underwriters (SEAU) was acquired by the American International Group (AIG) another large worldwide insurance group in 1983.

Phoenix Aviation Managers, founded in 1983, now comes under the umbrella of the Old Republic Insurance Group, another one of the oldest and largest groups in the country.

Royal-Globes’ aviation department, founded in 1948, withdrew from the market and USAIG acquired their business.

AAU, founded in 1929, on year after USAIG, was merged with the British Aviation Insurance Group (BAIG) in the United Kingdom to form Global Aerospace.

The INA, oldest stock insurance company in the United States, was founded in 1792. It continued to be one of the largest insurance companies in the 19th and 20th centuries before co-founding CIGNA in 1982. It was acquired by another large global insurance group, ACE Limited in 1999.

In addition, there were a handful of smaller aviation insurance markets that specialized in a particular class of business such as agricultural aircraft, helicopters, antique and experimental aircraft or restricted their writings to single-engine and light-twin business and pleasure risks.

It became quite apparent by the 1980’s that there was simply too many insurer’s chasing too few aircraft. Too much capacity put continuing downward pressure on premium rates.

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There is no question that the number of insurable aircraft units have been on a long downward spiral since the upward cycle ended in the late 1970’s. According to the Statistical Data book published annually by the General Aviation Manufacturer’s Association, shipments of aircraft hit a high of 17,811 in 1978 and a low of 929 in 1994 prior to the General Aviation Revitalization Act, passed by Congress and signed by the President that same year (see my article in the summer 2016, Volume 41 No. 2 of the Binder). The number rose to 2,816 in 2000 but dropped to 1,615 in 2013. Active U.S. General Aviation Aircraft reached a high of 211,446, a period of 21 years of virtually no growth. In

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2013 the number was 199,927. The average age of all aircraft in the fleet by 2013 was 33.2 years and for single-engine piston aircraft, 40.7 years.

More alarming is the number of new pilot starts which was 137,032 in 1978 and continued downward to 49,566 in 2013.

The problem being, where are we going to get pilots in the future to fly our personal/business, corporate, and airline equipment in the future?

All this brings me to the conclusion that future growth cannot come from additional units but only through mergers, acquisition and elimination of some competitors from the market.

This trend has prevailed for a number of years now in the agent/brokerage market.

Unfortunately, since the recession in 2007, investment opportunities have fallen off and interest rates have plummeted.

Historically many insurers have depended upon investment income to offset poor underwriting results.

It is not impossible to envision a future with fewer aviation insurers. This phenomenon is not peculiar to our industry.

Consider, for example, the growing market power of leading pharmaceutical companies, private health insurers, the largest Wall Street banks, giant cable providers, the five largest high-tech companies and the four major airlines.

The fewness in numbers is characteristic of what economists refer to an oligopolistic market. Prices tend to stabilize because of the interdependence of the few competitors; each one is aware that the actions of the others firms affect it. Economies of scale is another characteristic. Administrative, marketing, underwriting and claims handling are spread over a larger number of units, with fewer insurers; higher limits of liability and reinsurance between companies are more readily available.

Services are broadened to lessen price competition. We are already seeing this with expansion of safety and loss control services, recurrent training, risk management and regulatory services, and life and disability policies for their corporate accounts. Mayo Clinic’s aeromedical program for pilots, Pro Pilot, has been added to USAIG’s Performance Vector safety initiative. The program combines Mayo Clinic’s “comprehensive, customized health-care approach with a supportive team of medical professionals who fully understand the FAA medical certification process and the unique stresses pilots face”.

Innovative change has always been in the forefront of our industry’s short history. I foresee aviation insurance continuing on that path.

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AIA Eagle society On behalf of the AIA Board of Directors, we are pleased to announce that the following individuals have been elected into the 2017 AIA Eagle Society

R. DEAN ANDERSON

JON MORSE

ANTHONY BACEWICZ

J. ARTHUR MOZLEY

PETER BOYES

DAVID R. RIGG

JOHN CUTTS

JAMES ROE

JOHN DEL VECCHIO

KENNETH SCHMIDT

ERIK J. EGELAND

DAN SCHRAGER

SUSAN HOFER

MARCOS SHUSTER

CRAIG KETCHUM

PAUL SULLIVAN

WELLS FARGO INSURANCE SERVICES USA, INC.

U.S. SPECIALTY INSURANCE COMPANYPETER

GUY CARPENTER & COMPANY, INC.

TALBOT VALIDUS GROUP

W. BROWN & ASSOCIATES INSURANCE SERVICES ARTHUR J. GALLAGHER & CO.

CRANFILL SUMNER & HARTZOG LLP

U.S. SPECIALTY INSURANCE COMPANY

RALPH S. LAMONTAGNE JR. LAMONTAGNE & AMADOR LLP

PAUL A. LANGE

LAW OFFICES OF PAUL A. LANGE, LLC

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THE MORSE LAW GROUP

MOZLEY, FINLAYSON & LOGGINS

PARRISH-O’NEILL & ASSOCIATES, INC.

ARLINGTON/ROE & COMPANY, INC.

W. BROWN & ASSOCIATES INSURANCE SERVICES

SCHRAGER HAMPSON AVIATION INS AGCY LLC

GUY CARPENTER & COMPANY, INC.

JOE TROTTI AIG EUROPE LTD

CHRISTIAN WALTHER

R+V VERSICHERUNG AG - REINSURANCE

An AIA Eagle Society Member will have demonstrated their dedication to the AIA with their actions and deeds on behalf of the AIA, as well as having made substantial contributions to the aviation industry and/or demonstrated achievement in their career in aviation. Membership in the “AIA Eagle Society” is conferred by nomination by the President of the AIA, and awarded with the concurrence of the majority of the Board of Directors. The AIA Eagle Society award is presented annually at the AIA’s Annual Conference and has no limitations on the number of inductees. At the time of their induction, recipients shall have had at least ten (10) continuous years of membership in the AIA, unless this requirement is waived by a majority of the Board for good cause being had.

The Eagle Society installation will be held during the 2017 Annual conference at Hotel Del Coronado in San Diego.

Please join us in congratulating our new members of The Aviation Insurance Association’s Eagle Society.

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JON DOOLITTLE

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2017 corporate members John Darer

Frank Anton

Laura Heft

Thomas Hollinger

4structures.com, LLC Stamford, CT

Aviation Assurance, Inc. Ft. Lauderdale, FL

Butler Weihmuller Katz Craig LLP Chicago, IL

Elevon Aviation Insurance Solutions Kennesaw, GA

Mindy McFarland

Robert Motta

Thomas J. Byrne

Keith Wright

Advanced Aviation Insurance Services Roseville, CA

Aviation Insurance Advisors LLC Fort Lauderdale, FL

Byrne, Kiely & White LLC Denver, CO

Endurance Insurance Alpharetta, GA

Venktakrishnan Narayanan

Steve V. Neeley

Charles H. Smith

Timothy Griffiths

Aerospace Quality Research and Development Addison, TX

Aviation Insurance Managers, Inc. Uniontown, OH

Cantey Hanger LLP Dallas, TX

Endurance Re Zurich, Switzerland

Rick Turner

Jon R. Harden

Dean West

Robert Winn

Aerospace Risk Management Group Grand Ledge, MI

Aviation Insurance Resources Frederick, MD

CFM Aviation Insurance Brokers, Inc. Long Beach, CA

Engineering Systems Inc. Colorado Springs, CO

Stephan Asper

Lorretta Steffeter

Charles Gallagher

Karen Kryzaniak

AIC Title Services, LLC Oklahoma City, OK

Aviation Markets, Inc. Chicago, IL

Charles Gallagher Insurance Tiburon, CA

Experimental Aircraft Association, Inc. Oshkosh, WI

Kevin Gruys

Lawrence Galizi

Sean Emmett

Donald Chance Mark, Jr.

Aircraft & Marine Insurance Agency, Inc. Burnsville, MN

Aviation Risk Management Associates, Inc. Crystal Lake, IL

Charles Taylor Adjusting - Aviation Miami, FL

Fafinski Mark & Johnson, P.A. Eden Prairie, MN

Ian Macfarlane

Kyle White

Paul Leonard

Barry Dowlen

Aircraft Builders Council London

Aviation Solutions, LLC Lee’s Summit, MO

Charles Taylor Adjusting (Aviation) Dallas, TX

Falcon Insurance Agency, Inc. Kerrville, TX

Thomas C. Johnson

David Garvey

Rob Cheek

Barbara Cook

Airpower Insurance, LLC Phoenix, AZ

Aviation Training Management LLC Batavia, IL

Cheek and Company, Inc. Covina, CA

Flight Research Mojave, CA

Alexander Morris

Peter Rota

Jerry Ruth

Jeffrey S. Bruno

Airways International Insurance Service, LLC Mickleton, NJ

Aviators Insurance Agency, Inc. Van Nuys, CA

CHUBB New Orleans, LA

Global Aerospace Parsippany, NJ

Michael Dery

Candace Eichenberger

Christian Conesa

Brett Godfrey

Alexander Holburn Beaudin + Lang LLP Vancouver, BC Canada

Avinsure Agency, Inc. Powell, OH

CK&A Re La Paz, Bolivia

Godfrey Johnson, P.C. Englewood, CO

Darryl Pankratz

Scott Langevin

William J Coates

Michael Chevrette

Alexander Holburn Beaudin + Lang LLP Vancouver,BC Canada

Avion Insurance Agency, Inc. Lake Mary, FL

Commodore Insurance New York, NY

Great American Insurance Company East Brunswick, NJ

Mike Hansen

Andrew Smith

William L. McDonough, Jr.

David Chipperson

Allianz Global, Corporate & Specialty Toronto, ON Canada

AvPac Insurance Services, Inc. Santa Ana, CA

Copeland, Cook, Taylor & Bush, PA Gulfport, MS

Great American Insurance Group East Brunswick, NJ

Tracy Toro

Debi Fleischer

Patrick Costello

Craig Gately

Aon Risk Services New York, NY

AvQuest Insurance Service Gold River, CA

Costello Insurance Associates, Inc. Tempe, AZ

Great American Insurance Group East Brunswick, NJ

Douglas Morrison

Edmund W. Underwood

Ken Forsyth

Jim Muething

Arch Reinsurance Company Morristown, NJ

Avsurance Corporation Ann Arbor, MI

Crawford Aviation Sunrise, FL

Great American Insurance Group Cincinnati, OH

Mike Volpe

Daveion Craigie

Doug Davidson

Ian Wrigglesworth

ARGUS International, Inc. Cincinnati, OH

AXA Insurance Company New York, NJ

Davidson Solid Rock Insurance Clinton, AR

Guy Carpenter & Company, Inc. London

James Roe

Storm Bartling

Brian Sullivan

Efrain Leon

Arlington/Roe & Company, Inc. Indianapolis, IN

Bartling Insurance Group Irvine, CA

Dinsmore & Shohl Cincinnati, OH

Guy Carpenter Mexico Intermediario de Reaseguro Mexico City, Mexico

Charles Arnold

John Cunningham

David F. Taylor

Thomas Bradshaw

Arnold and Arnold, Inc. San Diego, CA

Beacon Aviation Insurance Services Sarasota, FL

Dulude, Taylor, Inc. Montreal, QC Canada

Scott Bradbury

Carolyn Belton

Terry Britt

Halton Hall & Associates/Menger Underwriting Services, LLC Fort Worth, TX

Atrium Underwriters Ltd London

Belton Aviation Insurance Group, Inc. Advance, NC

Eastern Aviation Insurance Services, LLC Lilburn, GA

Mark Hiller

Leon Beukman

Douglas S. Carr

Atrium Underwriters Ltd London

Borden Ladner Gervais LLP Vancouver, BC Canada

EBCO Aviation Underwriters, Inc. Memphis, TN

James Weigall

Robert Brown

Angela Folino

Atrium Underwriters Ltd London

Brown Gavalas & Fromm LLP New York, NY

Edwards, Kenny & Bray LLP Vancouver, BC Canada

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Randy Hardy Hardy Aviation Insurance, Inc. Wichita, KS

Russell A. Klingaman Hinshaw & Culbertson Milwaukee, WI

Marion Hope Hope Aviation Insurance, Inc. Columbia, SC

Thomas Fry

Sabrina Rojas

Lorri Shuey

Martin E. Rose

John Wright

Howard Fry & Son, Inc. Carmel, IN

Licensing Professionals Everson, WA

Nason Associates, Inc. Shawnee Mission, KS

Rose Walker, L.L.P. Dallas,TX

The Law Office of John L. Wright, pc Broomfield, CO

Cindy Hales

Clinton Speegle

Stephen Cunningham

Jeremy Barbee

Edward Williams

HUB International Northwest, LLC Bothell, WA

Lightfoot Franklin & White Birmingham, AL

National Flight Simulator Manchester, NH

Roy Neal Insurance, Inc. Lubbock, TX

The Metropolitan Aviation Group, LLC Honesdale, PA

Kirk Garrett

Pam Lipsey

Randall Nelson

Zachary Ballard

Walter Ingrao

IMU International Marine Underwriters St. Louis, MO

Lockton Companies Houston, TX

Nelson Law Firm, P.C. Billings, MT

Salmon, Ricchezza, Singer & Turchi LLP Philadelphia, PA

Thomas E. Sears, Inc. Boston, MA

Jonathan Wadsworth

Nick Vine

Ben Martin

J. Denny Shupe

Konrad Walter

InSight Aviation Insurance Richmond, VA

Lockton Companies Houston, TX

Norton White Lawyers Sydney, Australia

Schnader Harrison Segal & Lewis LLP Philadelphia, PA

TMSaero Boca Raton, FL

John Bloomstine

Graham Barden

Ralph Sohl

Andrea Sommerlad

Pete Torell

Insurance Management Company Erie, PA

Lockton Companies LLP London

Old Republic Aerospace Kennesaw, GA

SCOR Zurich, Switzerland

Torell Aviation Insurance Agency, Inc. Port Saint Lucie, FL

Harry Brooks

Jeffrey Sutton

Mark S. Williamson

Phil Kennedy

Roberto A. Torricella Jr

International Loss Management Norcross, GA

London Aviation Underwriters, Inc. Seattle, WA

ONI Risk Partners LLC Terre Haute, IN

Servco Pacific Insurance Seattle, WA

Torricella Pastor Baumgarten, PLLC Coral Gables, FL

Robert F. Ruckman

Daniel Lundy

Scott Kennedy

Jennifer Zak

Glennon Travers

Jackson Walker L.L.P. Dallas, TX

Lundy & Clark Insurance Group, LLC Ft. Lauderdale, FL

Parrish-O’Neill & Associates, Inc Mount Vernon, OH

Shannon & Luchs Insurance Agency, Inc. Gaithersburg, MD

Travers Aviation St. Louis, MO

Jonathan Harris

Miles Staples

David R. Rigg

John Howard

Robert Zavaglia, Jr.

JLT Re London

Markel Global Re Hamilton, Bermuda

Parrish-O’Neill & Associates, Inc. Mt. Vernon, OH

Silver Eagle Agency, Inc. Glenview, IL

Treece Alfrey Musat P.C. Denver, CO

Chris Peddy

Twylia McKee

D. Bruce MacDougall

Gary Sterling

Patrick Cannon

JLT Re London

Marsh and McLennan Agency, LLC Anchorage, AK

Paterson, MacDougall Toronto, ON Canada

SIMCOM Aviation Training Orlando, FL

Turbine Aircraft Components LLC Addison, TX

Charles Withers-Clarke

Stephen Wakeman

Bruce Ison

Alan Farkas

Patrick Cannon

JLT Re Hamilton, Bermuda

Marsh Canada Limited Calgary, AB Canada

Pinnacle Air Insurance, LLC Scottsdale, AZ

SmithAmundsen Aerospace Chicago, IL

Turbine Aircraft Services, Inc Addison, TX

Tony Johnston

Stephan Roess

Christopher Connor

John Nettels

Daniel Malott

JLTRE London

Marsh Canada Ltd. Calgary. AB Canada

Polaris Aero Scottsdale, AZ

Stinson Leonard Street L.L.P. Kansas City, MO

Valley In Flight Training, LLC Manvel, ND

Paul Smith

Nancy Gratzer

Kimberley Stufflet

James Strawinski

Thomas Strueber

JLTRE London

Marsh USA Inc. Atlanta, GA

Preferred Aviation Underwriters Duluth, GA

Strawinski & Stout, P.C. Atlanta, GA

Weinberg Wheeler Hudgins Gunn & Dial, LLC Atlanta, GA

Eugene Massamillo

J. Bruce McKissock

Gregory King

Benjamin Peterson

Christopher Jahr

Kaplan, Massamillo, & Andrews LLC New York, NY

Marshall Dennehey Warner Coleman & Goggin Philadelphia, PA

Propel Insurance Salem, OR

Sunset Aviation Insurance Santa Monica, CA

Wicker, Smith, O’Hara, McCoy & Ford, P.A. Fort Lauderdale, FL

Robert Kern

Louis R. Martinez

Peter Guy

Jonathan Doolittle

Scott Scammell

Kern Wooley, P.C Los Angeles, CA

Martinez & Ritorto, PC New York, NY

QBE Atlanta, GA

Sutton James, Inc. Hartford, CT

Wings, LLC Stockton, NJ

Eugene Wooley

David S. McCredie

Brian Neal

Oliver Boreham

Lawrence Wright

Kern Wooley, P.C. Los Angeles, CA

McCredie Insurance Agency, Inc. Flint, MI

QBE Aviation Atlanta, GA

Swiss Re New York, NY

Wright & O’Donnell, P.C. Conshohocken, PA

Frank Kimmel III

Michael Staszel

David Gray

Lesly Thatcher

Mark Breitenbach

Kimmel Aviation Insurance Agency, Inc. Greenwood, MS

McLarens Aviation Park Ridge, IL

QBE North America Atlanta, GA

XL Catlin Atlanta,GA

Hong-Sub CHOI

Alexander Muszynski III

John Killeen

Thatcher Aviation Risk Services & Insurance Solutions, LLC Walnut Creek, CA

Korean Reinsurance Company Seoul, Korea, Republic of

Meier, Bonner, Muszynski, O’Dell & Harvey P.A. Longwood, FL

Recurrent Training Center Savoy, IL

Lisa J. Savitt

XL Catlin Zurich, Switzerland

Ladd Gardner

Oliver Clarry-Risk

Jason Wissmiller

Ladd Gardner Aviation Insurance Agency, Inc. Addison, TX

Mountfitchet Risk Solutions Ltd. Surbiton, UK

Regal Aviation Insurance Hillsboro, OR

Evan Jones

Stefan Glutting

Michael Sparber

Landrum & Shouse Lexington, KY

Munich Reinsurance Company Munich, Germany

Riemer Insurance Group, Inc. Hallandale Beach, FL

James Gardner

Larry York

John Murray

Bryan Rose

The James A Gardner Company Inc. Marietta, GA

Larry York Aviation, LLC Flower Mound, TX

Murray, Morin & Herman, P.A. Tampa, FL

Rose Walker, L.L.P. Dallas, TX

The Axelrod Firm, P.C. Washington, DC

Anna Smith

Clay Hoxton The Hoxton Agency, Inc. Shepherdstown, WV

We would like to thank the 2017 AIA Corporate Members.

Thank you for your dedication and support of the Aviation Insurance Association.

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By Alex Wells February, 2017

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A government agency responsible for space program To provide work and earn pay First administrator of the FAA Abbreviation for western state whose capital is Salem Acronym for research and development Abbreviation for college aviation organization Nickname for the Ford Trimotor Every part Indefinite period of time Abbreviation for official authorized to certify documents Alternative possibility Abbreviation for SEC conference university Establishes visual contact with the runway A representative of another In opposition to Land of Lincoln To stay in place A brief written statement One of the Great Lakes Energy from the sun Chairman and CEO of Walt Disney South Korean monetary unit

Plant growing in the water Patricia of theater and film fame For instance Man-made objects put into space Spanish for good bye A satellite of the earth Short for propeller Cookie with a cream filling Abbreviation for the equivalent of 3 feet Abbreviation for holding company for a major airline based in Chicago Happening once a year ________ Ipsa Loquitur The science of causes or origins Chief Aeronaut of the Union Balloon Corps during the civil war To catch or trap Tom Collins ingredient Spanish for in or on Aircraft damage liability coverage

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Abbreviation for the opposite of direct current Former head of LTV A set period of time Spanish for Aunt Organs of site First name of former marine pilot who co-hosted the Tonight Show with Johnny Carson A soft metallic element that is easily shaped Acronym for Doctor of Optometry Abbreviation for the equivalent of the Ed.D degree The subject of insurance A shaft connected to a wheel Percy Pilcher’s glider flown in 1896 The place at which a fluid is taken into a pipe Abbreviation for University of Arizona with a large aviation department Forerunner to the A&P certificate A hard, semi-precious stone An enlisted man in the Navy To extend an insurance contract Abbreviation for large airline based in Atlanta Acronym for a physician’s title

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First name of St. Louis Cardinal Hall of Famer Abbreviation for insurance organization Active hospital room Abbreviation for the first state to ratify the US Constitution A fact that is essential to a case An announcement or warming Abbreviation for federal law that governs labor relations in the rail and airline industries The process of transferring a portion of the risk to a reinsurer The oldest stock insurance company in the US; now part of ACE insurance First name of founder of the Stinson Aircraft company in 1920 A Japanese rice wine A person who excels Japanese bomber that bombed battleships in Pearl Harbor Abbreviation for the creation in 1917 to administer cross license agreements ________ Stabler, Oakland Raiders quarterback ________ Luckman, Chicago Bears quarterback 180 degrees from NE

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SAVE THE DATE NOVEMBER 9TH, 2017

AIA LONDON RECEPTION LLOYD’S OF LONDON