Alternative Facts The Challenges of Settlements & Emerging

Alternative Facts The Challenges of Settlements & Emerging Insurance Issues 10th Annual McGill Conference of International Aviation Liability & Insurance – Montreal 22 June 2017

Perception v Reality It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only. Charles Dickens, A Tale of Two Cities 2

It was the best of times, it was the worst of times, The financials of the aviation insurance market A safe and safer means of transport A steep increase in agreed hull values and passenger numbers/departures heightened exposure A continually declining premium base Barely covering attritional losses – trending up A sustainable future? 3

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it was the age of wisdom, it was the age of foolishness Perceptions of the Market The Expectations of the Insured and Brokers Are always aligned? The Expectations of Plaintiffs The Delivery of Insurers Differing Views, Differing Locations and Differing Continents Airlines’ reliance upon the Insurers 7

it was the spring of hope, it was the winter of despair The Aviation Insurance Product – Specific Coverage Issues Its expansive nature Its generous nature? policy exclusions The new risks – cyber The (re)newed risks – terror/malicious acts Sanctions – we all have this in common 8

we had everything before us, we had nothing before us, The Challenge of Multi-jurisdictional settlements Insurers or Insureds reticent/reluctant to settle? Myth or reality? The cost for insurers for not settling The culture of airlines The culture of plaintiff lawyers The culture of courts 9

we were all going direct to Heaven, we were all going direct the other way The Future? A universal and aligned/uniform approach? Unification of damages? An inequitable legal environment? An obsession with damages The US – no longer the jurisdictional El Dorado? Politicising Liability 1 0

Thank you