SIGNS OF CHANGE

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					 G R O U N D CLUTTER                                                                                 FUEL W A T C H                                                                          North Central
                                                                                                                                                                                              Jet–A: $3.50
                                                                                                                                                                                              Avgas: $4.03
                                                                                                                                                                                                                              Northeast
                                                                                                                                                                                                                            Jet–A: $3.53
                                                                                                                                                                                                                            Avgas: $3.90




SIGNS OF CHANGE
In April I spoke for the annual conference and trade show of the Aviation
Insurance Association (AIA) in San Francisco. It is amazing how much the
aviation insurance industry has changed since I first spoke for AIA in 1991,
when it was a (relatively) small group of mostly agents and brokers. Now
the agents/brokers are there in larger numbers, but there are many more
people who are connected to the industry in other ways.
                                                                                                                   West Coast                                                     South Central                Southeast
     AIA vice president Frank Kimmel                                                                              Jet–A: $3.46                                                     Jet–A: $3.65              Jet–A: $3.48
explains it this way: First, agents/                                                                              Avgas: $4.07                                                     Avgas: $3.74              Avgas: $3.99

brokers — the people who sell avia-                                                                   The following fuel prices were derived from transactions completed with the
tion insurance — came to meet with                                                                    AVCARD credit card during March. Not all operations sell both jet-A and avgas. The
each other, to network, and to take                                                                   figures for jet fuel prices will be more representative than those for avgas, due to the
continuing-education courses. Then                                                                    higher number of transactions recorded. Prices reflect all taxes and discounts. Data is
the insurance carriers (USAIG, Global                                                                 supplied from AVCARD in consolidated format; individual transactions are not disclosed.
Aerospace, Allianz, and others) came
to network and sell their companies’                                                                  Average price per gallon in major cities (March, 2009)
stories to the agents/brokers.                                                                                                                                                                               Current period                One year ago
     Soon these carriers started bring-                                                               Chicago                                                                        jet–A:                             $3.46                    $4.77
ing their underwriting teams and held                                                                                                                                                avgas:                             $4.53                      n/a
their own management meetings while                                                                   Denver                                                                         jet–A:                             $3.21                    $4.66
at the AIA meeting. Then the reinsur-                                                                                                                                                avgas:                             $3.54                    $4.84
ance folks, who handle a part of most                                                                 Houston                                                                        jet–A:                             $3.29                    $4.41
every policy in the industry, started                                                                                                                                                avgas:                             $3.21                    $4.75
coming to talk with and sell to the                                                                   Los Angeles                                                                    jet–A:                             $3.25                    $4.48
                                                    Ralph Hood is a Certified Speaking
carriers.                                                                                                                                                                            avgas:                             $4.51                    $4.80
                                                    Professional who has addressed aviation
     In the meantime, the industry                                                                    St. Louis                                                                      jet–A:                             $3.28                    $4.64
                                                    groups throughout North America.
became much more sophisticated as                                       
				
DOCUMENT INFO
Description: AIA vice president Frank Kimm el explains it this way: First, agents/ brokers - the people who sell aviation insurance - came to meet with each other, to network, and to take continuing-education courses. Then the insurance carriers (USAIG, Global Aerospace, Allianz, and others) came to network and sell their companies' stories to the agents/ brokers.
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