"San Bernardino airport gets new insurance broker"

["Stephen Irwin" <stepheni@xxxxxxxxxxxxxxxxxxxxxx>]

Thursday, April 19, 2007

Airport gets new insurance broker 
By Michael Sorba
The Highland (CA) Community News
 
 
After over a decade with Newport Beach insurance brokerage Alliance
Insurance Services, Inc., the San Bernardino International Airport Authority
(SBIAA), the San Bernardino International Airport's governing body, decided
to shop around for a better deal.

During its Feb. 14 meeting SBIAA Chairman Pat Morris formed an ad-hoc
committee to investigate the airport's insurance.

Highland Mayor Ross Jones was appointed as committee chair due to his
40-plus years of experience in the insurance industry.

Upon investigation of Alliance Insurance Services, Inc., the Jones-led
committee found the airport's insurance had not been put out for competitive
bidding since 2001. Competitive bidding solicits a number of firms to see
which is willing to provide services at the lowest price, therefore, keeping
costs low.

As a brokerage firm, Alliance Insurance Services, Inc., has a responsibility
to manage the airport's insurance in a manner that will save the airport the
most money, Jones says. However, by not marketing the airport for
competitive bidding, just the opposite occurred.

Jones says the man responsible for the mismanagement was Alliance Insurance
Services, Inc., broker Ken Staley. Apparently, Staley worked on a commission
basis, so the more money the airport paid, the more money he got paid.  

"It was in his (Staley's) best interest to keep our (airport's) costs high
and we had a premium that reflected that," Jones said in a phone interview.
"He didn't do his job."

During SBIAA's April 11 meeting at Loma Linda City Hall, the SBIAA Board
unanimously approved the insurance ad hoc committee's recommendation to
ditch Alliance Insurance Services, Inc., and approve Riverside firm HUB
International of California Insurance Services, Inc., to provide insurance
services on a fee-for-service basis.

Jones says the fee-for-service agreements ensures the airport will pay a
flat fee for all of its insurance services. SBIAA staff will immediately
begin negotiating the fee-for-service rate with HUB International of
California Insurance Services, Inc. Once an agreement is reached new
policies will take effect July 1, 2007.

   Post your opinion on this story in the CAA General Aviation Forum
http://www.californiaaviation.org/dcfp/dcboard.php

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