SOW_Aircraft_Insurance_Advisor_revised_12-4-2017.pdf

INSURANCE ADVISOR

STATEMENT OF WORK (SOW)

Background:

Currently, EXIM Bank has a $35 billion aircraft portfolio consisting of approximately 100 borrowers and in excess of 1,100 aircraft located around the world. EXIM Bank requires each aircraft transaction to obtain and maintain a package of insurance coverage consisting of: (1) all-risk hull; (2) all-risk third party liability; (3) hull – war risk; and (4) third-party liability – war risk. While insurance does remain generally available on the major requirements for all-risk hull and liability, there have been instances where coverage limits have been lowered and certain deductibles have increased. As a result, EXIM Bank requires a Contractor to provide continuing advice regarding EXIM Bank’s aviation insurance risk exposure as well as any changes to an airline’s insurance coverage, among other tasks described below.

NOTE: It is conceivable that one or more firms may have potential Organizational Conflicts of Interest in relation to this requirement; therefore, please note the requirement to identify and mitigate such conflicts.

Scope of Work:

1. Provide an assessment of EXIM Bank’s current insurance risk exposure, on both an individual airline and a portfolio basis, taking into consideration both regional and sectoral concentrations. EXIM Bank will require a written assessment of EXIM Bank’s insurance risk with respect to an individual airline. Such assessments shall consider the impact of modifications to or loss of certain insurance coverage, as compared to the original requirements under the loan documents. EXIM Bank may require updates to any assessments on an as needed basis, as well as an annual review of airlines’ renewal certificates.

2. The Contractor shall provide related advisory services on an as needed/as requested basis from the Transportation Portfolio Management Division (TPMD), as follows:

• Provide advice regarding the acceptable levels of insurance protection required in particular markets as well as that necessary at specific airlines. This would include assistance in assessing requests for waivers of coverage limits on renewals or any requested changes to an airline’s insurance coverage.

• Assist EXIM Bank in understanding the risks presented by limitations on certain coverage’s in the aviation insurance market, based upon historical data.

• Provide information on conditions in the aviation insurance market to EXIM Bank staff responsible for all aircraft transactions, to the extent deemed necessary by EXIM Bank. These services shall include a review of specific insurance covers and the general availability, pricing and applicability of these insurances for airlines. (Insurance coverage related documents) and provide such assistance as requested in the event of a loss.

3. The Contractor may be called upon to provide the above listed Advisory Services via conference calls as well as face-to-face meetings, as requested by EXIM Bank. EXIM Bank will coordinate the need for such meetings with the Contractor as far in advance as practicable. Any travel associated with providing these services must be approved in advance by the COTR.

4. PERIOD OF PERFORMANCE: Contract shall be for a period of twelve (12) months from the date of award. Contract shall have four (4) consecutive twelve month option periods.