Introduction Underwriting 101 Underwriting Accident Review 2004 Accident Review Comparison of Accident Rate to Physical Damage Rate Comparison of Accident Rate to Physical Damage Rate Helicopter Accident Rate Goal Helicopter Accident Rate Goal Economic Impact of Achieving Goal Economic Impact of Achieving Goal

Aviation Underwriting : Appling knowledge of the aviation industry in order to pre-qualify and evaluate risk using exposure and operation analysis to develop pricing models that consistently produce the expectation of underwriting profitability. Appling knowledge of the aviation industry in order to pre-qualify and evaluate risk using exposure and operation analysis to develop pricing models that consistently produce the expectation of underwriting profitability.

Keys to Effective Underwriting Risk Selection Risk Selection Mathematics Mathematics Understanding cost Understanding cost Rate adequacy Rate adequacy

Benchmarking Exposure Rating Exposure Rating Probabilistic model Probabilistic model Deterministic model Deterministic model Catastrophic exposure Catastrophic exposure Experience Rating Experience Rating Accident history Accident history Trend analysis Trend analysis Burning cost Burning cost

2004 U.S. General Aviation Active Fleet By Aircraft Type (216,112 Total Units)

2004 U.S. General Aviation Accident Statistics 25,900,000 Flight Hours Accidents 1614 Fatal Accidents 312 Fatalities 556 Accident Rate6.22 Fatal Accident Rate1.20 Fatalities Rate2.15 Rate = per 100,000 hours

2004 U.S. Civil Helicopter Accident Statistics 2,225,000 Flight Hours Accidents 180 Fatal Accidents 33 Fatalities 68 Accident Rate 8.09 Fatal Accident Rate 1.48 Fatalities Rate 3.06 Rate = per 100,000 hours

2004 U.S. Civil Turbine Helicopter Accident Statistics 1,740,000 Flight Hours Accidents 89 Fatal Accidents 21 Fatalities 51 Accident Rate 5.11 Fatal Accident Rate 1.21 Fatalities Rate 2.93 Rate = per 100,000 hours

2004 U.S. On Demand Air Taxi Accident Statistics 3,070,000 Flight Hours Accidents 68 Fatal Accidents 24 Fatalities 65 Accident Rate 2.21 Fatal Accident Rate 0.78 Fatalities Rate 2.12 Rate = per 100,000 hours

2004 U.S. Corporate/Executive Accident Statistics 7,560,000 Flight Hours Accidents 7 Fatal Accidents 1 Fatalities 10 Accident Rate.093 Fatal Accident Rate.013 Fatalities Rate.132 Rate = per 100,000 hours

2004 U.S. Air Carrier (CFR-121) Accident Statistics 17,575,000 Flight Hours Accidents 28 Fatal Accidents 2 Fatalities 14 Accident Rate0.159 Fatal Accident Rate0.011 Fatalities Rate0.080 Rate = per 100,000 hours

Comparison 2004 U.S. General Aviation to Civil Helicopter Accident Statistics G.A. Helicopter G.A. Helicopter Accidents1, % Fatal Accidents % Fatalities % Accident Rate Fatal Accident Rate Fatalities Rate Rate = per 100,000 hours

Comparison 2004 U.S. General Aviation to Civil Helicopter Accident Statistics (Excluding Piston Helicopters) G.A. Helicopter G.A. Helicopter Accidents1, % Fatal Accidents % Fatalities % Accident Rate Fatal Accident Rate Fatalities Rate Rate = per 100,000 hours

Comparison 2004 Accident Rate vs. Physical Damage Rate Accident Rate = per 100,000 hours Physical Damage Rate = per $100 of Insured Value On Demand Air TaxiU.S. Air CarrierCorporate/ExecutiveTurbine Helicopter Accident Rate Physical Damage Rate

2015 U.S. Civil Turbine Helicopter Accident Rate Goal Accidents 18 Fatal Accidents 4 Fatalities 10 Accident Rate 1.02 Fatal Accident Rate.242 Fatalities Rate.586 Rate = per 100,000 hours

Economic Impact Direct Direct Increase in Capacity Increase in Capacity Lower Insurance Rates Lower Insurance Rates Coverage Expansions Coverage Expansions Indirect Indirect Deductibles/Betterment Deductibles/Betterment Productivity Productivity Public Perception Public Perception