Rising Insurance Rates Major Topic of Conference Roundtable Discussion

EDITOR'S NOTE: The following article is an editorial by the author, and may not reflect the opinion of other WATA members, corporate sponsors, MIDWEST FLYER MAGAZINE or its advertisers. Nothing can be reprinted without the written consent of the author, WATA and MIDWEST FLYER MAGAZINE. Any use of the information presented is done so without permission and at the user's risk.

by Bruce Botterman, President
Wisconsin Aviation Trades Association

In April, WATA hosted a "roundtable" discussion during the Wisconsin Aviation Conference. Any and every area of concern to operators was up for possible discussion, but rising "insurance costs" seem to get the most attention. Somewhat preempting a follow-up session on insurance, one operator present told insurance representatives in the room and his fellow operators that he has stopped renting aircraft, and ceased flight school operations, until he can find affordable coverage.

When Avemco Insurance Company pulled out of the commercial insurance market in 1999, this left a lot of smaller operators scrabbling for coverage and they faced premium rates double the amount they had been paying. Those companies remaining in the market justify the higher rates in order to make the commercial aviation market viable, and claim that insurance claims are greater among smaller operators than larger operators.

Our group requested that insurance representatives present seek documentation which supports those claims, and present this information to the WATA board for review. The representatives in attendance promised to attempt to get this information from their underwriters, but admitted that the insurance industry is not free with information it has, and doubted if it would be available. In the meantime, operators will need to work to increase business and increase aircraft rental rates to defray the additional increase in insurance premiums. In doing so, operators will be wise to be upfront with their clients, explaining in black and white their insurance costs and how this affects rental rates. On behalf of all fixed base operators in Wisconsin and elsewhere, we ask renters for their cooperation and understanding, knowing what our industry is up against.

Jeff Rasmussen of Mortenson, Matzelle & Meldrum in Madison, Wis., conducted the session on the "Future of FBO Insurance." Jeff was assisted by John Weber of NationAir Insurance, located at Flying Cloud Airport in Eden Prairie, Minn. Jeff noted that of all of the insurance companies in the United States, only 1 percent underwrite aviation. Jeff said that the combined ratio (the combination of losses and operating expenses) is greater than 100 percent, making commercial underwriting in aviation undesirable, and certainly a contributing factor for some companies getting out of the commercial aviation underwriting business. Those remaining are forced to either increase premiums, quit writing unprofitable business, or change coverage by reducing limits and adding exclusions to policies.

Jeff said there are things operators can do to keep rates down:
1) Raise deductibles or eliminate hull coverage. He cautioned operators that liability will likely be higher without hull coverage.
2) Control potential losses by scrutinizing renters/students by setting minimums; improving training of instructors and charter pilots; and improving training of line personnel in dispensing fuel, towing aircraft, and preventing hangar rash. Jeff also recommended that operators write a procedural/safety manual.

During the conference, WATA held its annual meeting, electing Mark Jaraczewski of Executive Air in Green Bay to the board, replacing Lynn Eberl of Madison, whose term had expired. We wish to thank Lynn for the many years he has served on the board, and in his future endeavors.

TIP OF THE MONTH:

After each summer flight, take a wet cloth and go over the leading edge of your wings, removing all bugs. This eliminates the need to use more elbow grease and potentially more abrasive measures to remove them at a later date. (Pete Schoeninger, Aircraft Appraisals, Platteville, Wis.)  

Midwest Flyer Publishers Named Aviation Businessmen of the Year 

STEVENS POINT, WIS. - The publishers of Midwest Flyer Magazine, Dave and Peggy Weiman of Oregon, Wis., have been named "Aviation Businessmen of the Year" for 2000 by the Wisconsin Aviation Trades Association (WATA). Ceremonies were held April 11 during the Wisconsin Aviation Conference in Stevens Points before an audience of more than 400 airport managers and commissioners, aviation businessmen, and government officials.

The Weimans co-founded Wisconsin Flyer Magazine in 1978, Midwest Flyer Magazine in 1980, World Airshow News in 1986, and Airshow Professional in 1993. "Through each of their publications, the Weimans have made numerous contributions to aviation in Wisconsin and throughout the country, in areas ranging from aviation business and airport development, tourism, marketing, pilot education, flight safety, and airshow entertainment," says WATA President Bruce Botterman. "We are fortunate to have their publications published in Wisconsin, and fortunate to have the Weimans as a resource to other aviation businesses in the state."

The Weimans founded Wisconsin Flyer Magazine in the basement of their home in 1978 while both were employed full time at the University of Wisconsin. They used money they had saved to buy their first airplane to publish and distribute 15,000 copies of the magazine to every pilot, aircraft owner, airport manager and flight center in the state. The Weimans got their initial investment back within the first year, and proceeded to go on to expand the magazine.

Wisconsin Flyer became Midwest Flyer Magazine in October 1980, and currently serves the states of Wisconsin, Minnesota, Illinois, Iowa, Michigan, North Dakota, South Dakota, and Indiana, and the metro areas of St. Louis and Omaha. The magazine is distributed to some 30,000 aircraft owners, and 1,000 airports.

The Weimans went on to publish other publications, and in 1986, founded "World Airshow News," which serves the entire airshow entertainment industry. In 1993, they founded the professional service catalog "Airshow Professional."

A graduate of the University of Minnesota and the University of Wisconsin with a Masters of Science Degree in Journalism, and a licensed pilot, Dave Weiman has written articles for numerous other aviation and general interest publications including "Air Progress," "Landhandler" by Allis-Chalmers, "AMOCO Traveler," "Investor's Business Daily," and the Madison Capital Times. He has also helped dozens of other aviation journalists and photographers fulfill their dreams by publishing their material.

The Wisconsin Aviation Trades Association is an association of flight centers, aviation service companies and businesses in the state of Wisconsin. The Weimans are past recipients of the "Airshow Safety Pioneer Award" presented by the Professional Airshow Performers & Producers Association (PAPPA, 1997). Dave Weiman is also the past recipient of the "Blue Light Award" for excellence in aviation journalism presented by the Wisconsin Airport Management Association (WAMA, 1981).

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