2014 Power Broker

Aviation

Expertise and Knowledge

Joseph Braunstein Senior Vice President Marsh, New York

Joseph Braunstein
Senior Vice President
Marsh, New York

Key Air Inc. was getting ready to consider other brokers until Joseph Braunstein was assigned to their account, said Greg Kinsella, president and CEO of Key Air, which manages and operates aircraft owned by others. “We agreed that if we were going to Marsh that he would make the difference, and he definitely has,” said Kinsella. “It was really on the customer service side. He didn’t go through the motions and just offer minimum basic support. He really looked at our policies.”

Another major benefit Braunstein, Marsh’s General Aviation practice leader, offered Key Air is a user-friendly handbook the company can use to educate its clients on the various coverages available to them and how the policies would work when needed.

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“Joe took the initiative to create that. It really gives me and my team a tool to sit down with our clients and educate them on aviation insurance,” Kinsella said. “It has helped us be more effective.”

He was able to transition the perception of insurance from a liability to an asset.

The director of operations for a large aircraft charter company praised Braunstein as “a fantastic resource.”

“When Joe and Marsh got our business, we immediately saw an increase in coverage and a decrease in premium,” he said.

In addition, Braunstein’s “expertise and knowledge in aviation insurance is quite evident. Joe is looking out for our interests and that’s something we did not have before.”

Sharing His Knowledge

John Geisen, ARM, CPCU Senior Vice President Aon, Minneapolis

John Geisen, ARM, CPCU
Senior Vice President
Aon, Minneapolis

John Geisen, senior vice president at Aon, has been an account leader in the aviation space for nearly two decades, and his clients have benefited from his in-depth knowledge.

“In the aviation industry, there are a lot of challenges that come up,” said Bill Hoyt, insurance risk manager at the Metropolitan Airports Commission, a public corporation that provides aviation services throughout the Twin Cities metropolitan area, including operating the Minneapolis-St. Paul International Airport.

“The issues change almost every day,” Hoyt said. “In this industry, you have got to have someone who has a significant understanding of the risks. That’s what John has and that’s what John brings to the table for us.”

In addition to the typical coverage, Hoyt relies on Geisen for unusual coverage challenges, counting on him to determine whether current policy wording covers such a risk or if an endorsement is required. One example, he said, involved determining liability issues associated with glare and other risks related to solar panels.

For Karen Erazo, manager, Legal Affairs, Sun Country Airlines, Geisen’s attentiveness, knowledge and ideas are as welcome as his focus on keeping costs down.

One issue Geisen has been focusing on this past year is the workers’ compensation impact of senior flight attendants, she said. “He’s come up with suggestions on addressing lifting and other ways to help our flight attendants reduce the risk of injury,” Erazo said.

“He’s very knowledgeable and very anxious to share that knowledge,” she said.

Customization and Confidence

Jason Hendrix Assistant Vice President Aon, Dallas

Jason Hendrix
Assistant Vice President
Aon, Dallas

From helping out a mom-and-pop airline to covering aviation risks in war-torn countries, Jason Hendrix does it all. A pilot himself, Hendrix furthered his knowledge at the Embry-Riddle Aeronautical University, a college designed for aviation professionals, and as an aviation underwriter prior to becoming a broker.

“You can ask him anything about an airplane and he will tell you,” said Chrissy McCreary, supervisor, Risk Management, KBR, which operates air bases internationally, including in Iraq and Afghanistan. “Our corporate program is pretty specialized. We have bits and pieces all over the world and every project is different,” she said.

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For Jake Duplechin, president and owner of Executive Aviation Management, Hendrix, an assistant vice president at Aon, helped him make his dream of owning his own aircraft management business a reality by fostering relationships with the insurance marketplace and putting together a fleet policy that covers the seven airplanes owned by about 15 companies.

“It’s almost like calling a buddy of mine on the phone but he’s such a professional when it gets down to it,” Duplechin said.

A challenge this year for CGG was the acquisition of a fleet of 28 aircraft in four countries.

“We never had to insure planes before,” said Erin Obrien Link, CGG’s enterprise risk management and insurance vice president. The situation was complicated by the planes being registered in different countries and having numerous local policies that were in effect. “He was able to put together a global policy, which was extremely complicated,” she said.

A True Partnership

Drew Johnston, CAIP Vice President Aon, Wichita, Kan.

Drew Johnston, CAIP
Vice President
Aon, Wichita, Kan.

As Intrepid Aviation was looking to grow, they called upon Drew Johnston, a vice president at Aon. “We were able to pivot very effectively from two aircraft to now 10 aircraft with customers in nine countries, said Intrepid’s chief investment officer, Brian Rynott. “We were looking for help to manage the portfolio and help plot out the growth trajectory, and someone to support us in that growth from an insurance perspective.”

Johnston was also crucial in coming up with a risk solution for Frank Perryman, president and CEO of Perryman Co., who is passionate about being in the left-hand seat and flying the company’s fleet of jet aircraft.

“Our qualifications are no different than professional pilots who would fly for any of the airlines, but being the owner and operator takes it to a unique difference,” Perryman said. “He takes the time to have an intimate knowledge of what we do and how we do it.”

Johnston also helped Perryman communicate the company’s message to their underwriter, which created “a better bond,” Perryman said. It also resulted in the liability limit the company required at a very competitive price. “There’s nothing that is cookie cutter anymore,” he said. “You have got to design solutions for each and every client and that’s what he did.”

Johnston also helps Beechcraft navigate its way through its international risks and the demands of its business partners, said Cheryl Herbst, manager, Insurance and Risk Management, Beechcraft. “They will ask for the moon,” she said. “He helps us find a solution, sometimes at the last minute.”

Protecting Management

    Chris Taylor     Vice President     Aon, Boston

Chris Taylor
Vice President
Aon, Boston

Chris Taylor “worked his magic” as he guided Hawker Beechcraft through a management liability renewal process prior to entering bankruptcy and in the formation of Beechcraft, the new company.

“There are special issues that arise, and it can be a real challenge to secure insurance prior to entering Chapter 11,” said Cheryl Herbst, manager, Insurance and Risk Management, Beechcraft. “However, thanks to Chris, we went through Chapter 11 with full coverage and a run-off policy.”

Taylor “just went above and beyond my expectations,” and worked late into the night as negotiations regarding formation of the new company took place. “The day we emerged as a new company, we had a total insurance program in place,” she said.

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Taylor, a vice president at Aon, also was able to bring innovative solutions to a defense contractor, related to its wage and hour coverage and D&O needs, especially international D&O coverage.

Among the challenges he was able to address were dealing with the contractor’s multiple internal stakeholders, changing compliance requirements in various countries and communication issues with non-insurance professionals.

At another organization, a plastics manufacturer, Taylor had to handle a complex transaction with multiple U.S. and international D&O policies during an acquisition, which required extensive communication and time management as he worked with the new company’s risk management team and broker to align coverage to protect both companies.

Creative Solutions

William Willer Area President Arthur J. Gallagher, Miami

William Willer
Area President
Arthur J. Gallagher, Miami

AerSale has multifaceted and complicated aviation risk exposures, but William Willer was able to find ways to create solutions that work for both the company and underwriter.

“He provides excellent information and frankly seems to be able to get the underwriters to come along and cooperate with us. That impressed me,” said Gary Eakins, vice president and corporate counsel of AerSale Inc., an aircraft leasing company that ferries aircraft.

Insurance is very expensive for ferrying flights, and it goes up astronomically depending on the number of flights, said Eakins.

“That never made a lot of sense. It’s the landing and take offs that get you, not the number of miles you cruise at altitude,” he said. “Bill was able to moderate those costs in a reasonable and effective way.”

In addition, Willer’s technical knowledge has been extremely helpful in drafting contracts, and he has been very responsive. “The aviation space is quite small in terms of people. They all know each other. I find Bill to be very effective in dealing with underwriters when unusual issues come up or when we need to explore an area where we hadn’t been before,” Eakins said.

Willer, an area president at Arthur J. Gallagher, also helped an airline through a Chapter 11 process, while correcting some serious and costly actions caused by a previous broker, and helped the risk manager of an aircraft leasing company overhaul the entire risk management process.

BlackBarFinalists:

Bradley Meinhardt Area President Arthur J. Gallagher

Bradley Meinhardt
Area President
Arthur J. Gallagher

Grant Goldsmith Vice President Avalon Risk Management

Grant Goldsmith
Vice President
Avalon Risk Management

More from Risk & Insurance

More from Risk & Insurance

4 Companies That Rocked It by Treating Injured Workers as Equals; Not Adversaries

The 2018 Teddy Award winners built their programs around people, not claims, and offer proof that a worker-centric approach is a smarter way to operate.
By: | October 30, 2018 • 3 min read

Across the workers’ compensation industry, the concept of a worker advocacy model has been around for a while, but has only seen notable adoption in recent years.

Even among those not adopting a formal advocacy approach, mindsets are shifting. Formerly claims-centric programs are becoming worker-centric and it’s a win all around: better outcomes; greater productivity; safer, healthier employees and a stronger bottom line.

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That’s what you’ll see in this month’s issue of Risk & Insurance® when you read the profiles of the four recipients of the 2018 Theodore Roosevelt Workers’ Compensation and Disability Management Award, sponsored by PMA Companies. These four programs put workers front and center in everything they do.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top,” said Steve Legg, director of risk management for Starbucks.

Starbucks put claims reporting in the hands of its partners, an exemplary act of trust. The coffee company also put itself in workers’ shoes to identify and remove points of friction.

That led to a call center run by Starbucks’ TPA and a dedicated telephonic case management team so that partners can speak to a live person without the frustration of ‘phone tag’ and unanswered questions.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top.” — Steve Legg, director of risk management, Starbucks

Starbucks also implemented direct deposit for lost-time pay, eliminating stressful wait times for injured partners, and allowing them to focus on healing.

For Starbucks, as for all of the 2018 Teddy Award winners, the approach is netting measurable results. With higher partner satisfaction, it has seen a 50 percent decrease in litigation.

Teddy winner Main Line Health (MLH) adopted worker advocacy in a way that goes far beyond claims.

Employees who identify and report safety hazards can take credit for their actions by sending out a formal “Employee Safety Message” to nearly 11,000 mailboxes across the organization.

“The recognition is pretty cool,” said Steve Besack, system director, claims management and workers’ compensation for the health system.

MLH also takes a non-adversarial approach to workers with repeat injuries, seeing them as a resource for identifying areas of improvement.

“When you look at ‘repeat offenders’ in an unconventional way, they’re a great asset to the program, not a liability,” said Mike Miller, manager, workers’ compensation and employee safety for MLH.

Teddy winner Monmouth County, N.J. utilizes high-tech motion capture technology to reduce the chance of placing new hires in jobs that are likely to hurt them.

Monmouth County also adopted numerous wellness initiatives that help workers manage their weight and improve their wellbeing overall.

“You should see the looks on their faces when their cholesterol is down, they’ve lost weight and their blood sugar is better. We’ve had people lose 30 and 40 pounds,” said William McGuane, the county’s manager of benefits and workers’ compensation.

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Do these sound like minor program elements? The math says otherwise: Claims severity has plunged from $5.5 million in 2009 to $1.3 million in 2017.

At the University of Pennsylvania, putting workers first means getting out from behind the desk and finding out what each one of them is tasked with, day in, day out — and looking for ways to make each of those tasks safer.

Regular observations across the sprawling campus have resulted in a phenomenal number of process and equipment changes that seem simple on their own, but in combination have created a substantially safer, healthier campus and improved employee morale.

UPenn’s workers’ comp costs, in the seven-digit figures in 2009, have been virtually cut in half.

Risk & Insurance® is proud to honor the work of these four organizations. We hope their stories inspire other organizations to be true partners with the employees they depend on. &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]