Travelers Aviation, part of The Travelers insurance company, made its debut at the 2007 AIA convention at Indian Wells, Calif. This year in Nashville, Gordon Murray, its president, told AIN that in the past year Travelers has booked premiums in the millions of dollars and continues to look for opportunities. “The marketplace out there is competitive.
Despite the economic uncertainty in the U.S. and abroad, the mood was decidedly upbeat at the Aviation Insurance Association (AIA) convention April 26 to 29 at
the Gaylord Opryland resort in Nashville. In fact, due in part to the downturn in financial circles, aviation insurance–a truly worldwide industry–has been experiencing a mini-boom that is benefiting the insured, large and small.
The National Air Transportation Association (NATA) has acquired the Aviation Training Institute (ATI) from Denver-based Aviation Resource Group International. ATI was formed to deliver line service training to FBOs and will dovetail with NATA’s “Safety First” certification program for line service personnel.
In the months since September 11, the insurance industry has taken a beating. Some estimates–and they are still just estimates–put the total losses in excess of $100 billion.
Within days of the terrorist attacks, it was apparent that efforts by insurers to cope with the disaster would translate to higher costs and changes in coverage limits. So far, this is being proved out.
You roll up to an FBO in a multi-million-dollar business jet, and they roll out the red carpet. Your passengers disembark and you stroll into the office. There, the smiling customer service representative hands you a document. “It’s just our standard hold-harmless agreement,” she says. “We need your signature.”
The International Business Aviation Council (IBAC) has finished a two-year project to develop International Standards for Business Aircraft Operations (IS-BAO), but release of the document is pending IBAC’s obtaining liability insurance. Development of the standards started in March 2000 and culminated shortly before the NBAA Convention last month, when the IS-BAO board signed off on the document.
Someone I used to know–a father and general aviation pilot–questioned why he needed life insurance, because, quote, “I won’t be around to enjoy it.” He could well afford it, but apparently his survivors’ welfare didn’t warrant the few bucks a month a policy would cost.
Business aviation financiers exhibiting here at EBACE’08 have arrived in Geneva largely uncertain about the full implications of the ongoing squeeze on the global credit market and the availability of funds to pay for aircraft purchases. Last month, EBACE Convention News approached six banks listed as exhibitors, but only two–Citi Private Bank (Booth No. 1441) and Bank of America (Booth No.
So called “showstoppers” insurance, a form of business interruption coverage, will likely help NBAA recover some of the expenses and lost revenue the association incurred when it postponed last year’s annual convention from September and moved it to December. The NBAA Convention has always been covered under showstoppers insurance, but this is the first time the association is making a claim.
With regard to liability insurance, answers to the question of “How much is enough?” have always been something of a mystery. But for shareholders in a fractional program, the answers are compounded by the concept of shared ownership.