1. WTAAA –Geneva 04Sep16
Providing A Choice

2. Who Are We? TARS Ray Hartweg Since 1997 – Thailand Helped Create DIP
HKG base – Global Reach
Malaysia (2) & Philippines
Ecuador (2)
Australia (3)
Consumer & Consolidator Prog.
IATA Impact
R850p
TAC – Appeal option for IATA
TAC hearings in favor of insurance
Independent Insurance, Agency, Airline Expertise
Ray Hartweg
Agency Experience since 1982
Flying Tigers - Regulatory & Industry Affairs Director,
IATA Director - Agency, Area 3 (A-P)
Travel Agency Commissioner – Southeast Asia
DIPs since 1997
Former GSA – NZ
Europe/USA/SE Asia footing
Consulting Skills – Distribution, IATA & Industry Matters, GSA, Cargo & Marketing.

3. What is a DIP (#1)? From Resolution 850p – Financial Securities
Language and implementation – often two very different things!

4. What is a DIP (#2)? Providing Agents with a Choice
Insurance alternative to costly BG/LCs
No change to Agency Program – tailored to each Territory
20-25% lower cost!
No Collateral - Ever
Business Risk Limited –
No personal indemnity; and
No director’s guarantee
Covers Agency Program, not individual Agents – Simple administration
Registration Form, not Application
No Minimum Number of Agents – Commercial Choice
Multi-year initial Policy - commitment

5. What a DIP is Not Not Mandatory – Choice with Agent
Not Tied to IATA – independent
Not “one-size-fits-all” – we have and can do a DIP anywhere – territory tailored
Primarily Asia – but have worked worldwide (over 15 territories)
Complicated or Costly
1 additional Form – registration
Compare out-of-pocket-BG cost – usually lower
Total savings to Agent – zero collateral (even if Time Deposit!); Separate business from personal and lower cost!
Timing – takes a few months to get program set-up – then go to IATA
Can do a WTAAA DIP in short order by territory, by region or global!

6. Who is a DIP?
Who We Are?
Fronting Insurer – local content, local expertise, local language & more
RE-insurer – supports whole DIP – 1 country or multi-country
Insurance Broker – LON Based – Ropner (Lloyds – 100 years)
TARS
Key Market Components:
Agent Associations – work closely
Some airlines – “white knights”
Many Individual Agents

7. IATA & DIPs GIS is likely to face major obstacles – Why
Unrealistic expectation of Insurers & Cover vs. Risk
Biggest obstacle to DIP expansion today?
32-pages of Procedures
No info on defaulters
Common End Dates
Changing Claims basis mid-stream
Banks unregulated – 98% of risk! Why?
Monopolies do not provide best service and certainly not best price
Bigger is better mind-set not valid
Fantasy rates (20% vs. 40% recent PH reduction)
What role will IATA play – RFT – not seen;
Billing & Collection role – unfair to future providers
All eggs in one basket – what happens if AIG déjà vu?
Local regulations, AML rules, FCA Conflict of Interest requirements, Customer Service, etc.
Why now – DIPs - 20 years with little IATA support?

8. NewGen ISS Features vs. Benefit? Business Case – shown?
Declining numbers – historical
TMCs vs. Standard vs. “Lite” vs. LCCs vs. OTA vs. Google vs. what’s next?
Push for shorter credit, higher financial guarantees – what is in it for Agents?
If LFC effective and Agent passes – why ask for financial guarantee?
Airlines undermining Agency Program with demands for separate guarantees (growing trend)
Top heavy administrative burden (Delinq-irreg-credit events, audited account, “Top-ups” and what more?)

9. Resolution 8XX (May16 edition)
Current Program
Proposed Program
Different view
Administratively heavy handed
Costly – audited accounts, top- ups, Agency Fees, etc.
What are benefits today:
Access
Credit
Single Billing/Payment
Name on door?
Declining membership
Agency Program less important to airlines
Agency Program less important to Agents too
Risk Event, RHC, multi-credit levels, risk management – more admin.
Still Costly
What are benefits tomorrow:
Access – separate BGs
Credit – reduced more & more
BSP – burden or benefit?
Consumers don’t care
Market place changing daily
Where are features & benefits
Does this fix the problems ?
Airlines-IATA-Agents – Two commercial groups vs. one bureaucracy!
Bank Guarantees (credit) remains single biggest topic – same as in 1980s!
Separate guarantees growing concern for many agents
If I have 1M in sales and matching BG, most airlines will do business with me!
Those who do not deal directly will send me to their favorite agent or consolidator.
Commercial process is simple:
Sales=BG=relationship
Why make rules so complex?
StB but not for Agency Program!

10. DEFAULT INSURANCE PROGRAM – TARS MARKETING & ADMINISTRATION
T - U - V - M
WTAAA BOARD MEETING & AGM
04-05 September 2016 – Geneva
Travel & Aviation Risk Solution – TARS or
Web Site:

11. WHY JOIN UCPB GEN INSURANCE‘S DEFAULT INSURANCE PROGRAM (DIP)?
LOWER COSTS
SAVES YOU MONEY
NO COLLATERAL
FREES YOUR COMPANY ASSETS, IMPROVES YOUR BALANCE SHEET.
KNOWN FIXED COST
FITS INTO BUDGET PLANNING
PROTECT YOUR PRIVATE ASSETS
NO PERSONAL INDEMNITY OR DIRECTORS’ GUARANTEE REQUIRED.
PAYMENT FLEXIBILITY
THREE PAYMENT OPTIONS PROVIDE FLEXIBILITY AND MORE POTENTIAL SAVINGS
EASY ADMIN
ONE-PAGE REGISTRATION, SINGLE INVOICE, MATCHING RECEIPTS
INSURANCE
KNOW YOUR COSTS IN ADVANCE
JOIN THE BSP-PHILIPPINES DIP NOW!
ANY BSP-PH AGENT CAN JOIN THE DIP!
THE DIP IS:
IATA APPROVED
Agent Association SUPPORTED
BOTTOM LINE - SAVINGS
CONTACT UCPB GEN NOW!
GET “NO-OBLIGATION” QUOTES!
ASK A FELLOW AGENT ABOUT UCPB GEN TODAY!
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