Monday, October 17, 2016

Drone Insurance

Published in Mid-Canada Forestry & Mining, Spring 2016:

It's often been said, "Insurance is the only product that both seller and buyer hope is never actually used." That's undeniably true, but it's also true that no business should operate without insurance. Whether your business is in the highest of high technology or as low-tech as making rope and horseshoes, having that safety net of insurance is wise.

On the newer and higher end of business technology is the use of unmanned aerial vehicles (UAVs) or "drones" for photography and data gathering. Small camera-mounted flying machines can be seen surveying urban land for developers, and less visibly are out in remote areas doing valuable work for foresters, miners and mineral exploration companies.

Wherever drones are used, accidents can happen, and those mishaps can damage property and hurt people. Consider these recent incidents:

A small UAV crashed into the 40th floor of an iconic New York City landmark, the Empire State Building, on a business day in February; police charged the hobbyist operator with disorderly conduct.

A privately owned drone crashed head-on into the grill of a moving vehicle last December in Belleville, Ontario; a local police officer told CBC News it was the first crash of its kind he'd ever heard of, but "it probably won't be the last."
Camera-mounted drones were banned from World Cup ski meets after one nearly hit a slalom competitor in Italy.

And, though it's not making news, there have been drone mishaps at mining and forestry sites in North America. Nothing as newsworthy as the 2014 crash of a UAV into a conventional airplane near an Australian mine, but they're happening. The use of drones for mapping, data collection and surveillance is increasingly common in forestry and mining, and with use comes risk.

Really, there's no question that liability protection for your fixed-wing and helicopter UAVs is smart business. But – and this should come as no surprise – it's also required. Transport Canada requires no less than $100,000 in liability insurance coverage for your drone – regardless of how big or small, regardless of how you use it.

And, of course, $100,000 really is a minimum. A UAV operator would be well advised to get more coverage because, as Sumac Geomatics CEO Todd Domney says, "If you drop a UAV on somebody's head or a car, $100,000 isn't going to do much for you." His Thunder Bay-based company has insured its fleet, which includes a fixed-wing Lancaster Hawkeye and a few multi-rotor models, beyond the minimum.

Fortunately, the drone insurance market now has several competitors eager for your business. Once only through specialist aviation insurers, the market broadened in April 2015 when a big player, Zurich Canada, launched a UAV insurance package for corporate clients. "Zurich's customers in Canada will be the first ones around the world to have access to this unique insurance solution, thanks to the sophisticated regulatory environment governing the use of drones in Canada," Zurich Canada executive Urs Uhlmann said in a news release.

Another corporate goliath, AIG Insurance, introduced its drone policies a few months later. "AIG has the capability and product to handle unmanned aircraft of any size operating in a wide variety of industries," the New York-headquartered company declared on its website.

Toronto-headquartered Intact Financial Corporation launched its commercial UAV insurance in January 2016 after, according to Senior Vice-President Alain Lessard, "broker feedback and survey insights identified a growing customer demand and gap in non-specialty markets for this type of coverage."

Lawson Consulting and Surveying, headquartered in Winnipeg, acquired its first UAV (a lightweight senseFly eBee, since replaced by a larger Trimble UX5) in early 2014 – before AIG, Intact and Zurich launched their commercial UAV insurance packages.

"It was a chore to get insurance for our UAVs back then," recalls Lawson Consulting's CEO and President, Andrew Lawson. "Insurers for UAVs were hard to come by."

All that has changed greatly. There are more insurers now, premiums are lower now, and getting a UAV insured is much easier. But the assistance of Lawson's insurance broker at Crossroads Insurance in 2014 (when they insured with Lloyd's of London) and since is still greatly appreciated. "They've been a huge help," Lawson says.

"Businesses typically need at least two types of insurance to ensure they are properly protected," Hazel Tan, a spokesperson for Intact, remarks from her office in Toronto. "One is commercial property insurance, the other is liability insurance. A business needs to insure against the loss or damage of its property, including the drones, which can have price tags in the tens of thousands of dollars (or even in six figures). The firm also needs protection 'in the unlikely event that their UAV causes injury to someone else or damages the property of others,'" she adds.

Tan says Intact is unique in the Canadian market as "the only insurer to offer drone coverage under its commercial insurance policy. Other insurance companies are offering drone coverage via a separate, speciality aviation insurer.

"UAV coverage from Intact Insurance also includes the option of insuring UAV-mounted surveying, sensing and photography equipment in addition to the UAV itself," she adds. "We continue to be a strong market for the non-aviation exposures of customers that may use drones and can provide tailored solutions, coverage and claims support for commercial customers."

Tan says Intact has potential drone insurance clients complete a "a brief application form with focussed questions that allow us to capture details most relevant to setting fair-minded terms for UAV insurance. For example, we wish to see that UAV pilots have at least some training and experience, including attainment of the minimum knowledge requirements that are specified by Transport Canada."

Crossroads Insurance President T.J. McRedmond, who helped Lawson Consulting and Surveying get UAV insurance in 2014, says it's a good idea to insure your drone through a company that's familiar with aviation insurance.

"It's definitely important to know who's providing the product," he remarks from Winnipeg, adding that it helps to have someone who knows the ropes in your corner in the event of claim. "Insurance brokers have that knowledge and act as advocates for our client."

Getting insurance for UAVs is "straightforward," says Sumac's Domney. "We pretty much just filled out a questionnaire similar to one you would fill out when buying home insurance, with some drone-specific questions thrown in. It was easy. It's like anything else. You need insurance to do business, and it's just a cost of doing business."

Peter LeCouffe says getting insurance was fairly easy when Harrier Aerial Surveys got its first UAV (it now has a few). The trickiest part was that there's a bit of a Catch-22 involved: You need a Special Flight Operations Certificate (SFOC) from Transport Canada to get drone insurance, but you need insurance to get an SFOC.

Fortunately, the Nelson, BC-based company found an insurance broker to navigate those insurance/regulatory waters. "The broker does most of that work," says LeCouffe, Harrier's Operations Manager. "It wasn't too much of a hassle for us at all."

Owners, operators, insurers and brokers agree that things are looking up in the drone insurance market.

"Right now," says McRedmond, "insurance for drones is still fairly expensive because there are not a lot of insurers in the market. Competition will drive premiums down eventually. "I believe that, in the next while, more and more companies are going to be offering UAV insurance. We've been seeing more and more insurance companies starting to come out with products, as more and more uses are found for UAVs."

And the entry of more insurers will have predictably good effects on cost, he adds. "It's just like any other business: As competition comes into the market, prices will go down."

Tuesday, May 24, 2016

Review: America’s War for the Greater Middle East

Published 21 May 2016 in the Winnipeg Free Press:

America’s War for the Greater Middle East: A Military History
By Andrew J. Bacevich
Random House, 454 pages, $40

Reviewed by Mike Stimpson

The United States is engaged in its fourth Gulf War, the enemy a product of the third Gulf War.

That, in a nutshell, is how Andrew J. Bacevich characterizes the war against Islamic State (IS) in his insightful and thoroughly researched history of U.S. military endeavours in the Middle East since 1980.

A retired army colonel, Bacevich has taught military history at Boston University and West Point. America’s War for the Greater Middle East is a followup to his 2013 bestseller, Breach of Trust: How Americans Failed Their Soldiers and Their Country.

The first Gulf War, by Bacevich’s reckoning, was the 1980-88 conflict between Iran and Iraq. In that clash Washington backed the Iraqi military of Saddam Hussein, "thereby emboldening him."

The second Gulf War was Washington’s attempt at swatting down the emboldened Hussein, who invaded neighbouring Kuwait in 1990.

U.S. forces invaded Iraq and ousted the dictator in the third Gulf War, creating a power vacuum that was filled by disorder and sectarian conflict out of which eventually emerged IS.

Islamic State was, Bacevich writes, "the second harvest of poisonous fruit resulting from Operation Iraqi Freedom," the first having been the Sunni Islamist group known as al-Qaida in Iraq.

Among the dozens of other military campaigns and operations covered in this ambitious and provocative historical survey are (first) a botched effort to rescue hostages in Iran in 1980, the disastrous attempt at imposing order on Lebanon circa 1983, the bombing of Moammar Gadhafi’s Libya in 1986, and the more recent invasion and occupation of Afghanistan.

Each action was committed with supposedly high-minded goals such as spreading democracy and promoting human rights. Each produced significant blowback for Washington, as not everyone was pleased to see their country invaded and/or bombed.

Reading America’s War, one gets the impression Pentagon brass (and politicians in both major U.S. parties) are decidedly slow learners regarding the Islamic world. Their efforts repeatedly fail and stoke anti-American sentiment in the process, yet they continue with essentially the same approach.

The pattern brings to mind two old observations: "Everything looks like a nail when all you have is a hammer" and "one definition of insanity is trying the same thing repeatedly but always expecting a different result."

Curiously, the robust expansion of U.S. military activity in the Middle East was sparked by a 1980 pronouncement from the least hawkish president of recent decades.

In what became known as the Carter Doctrine, kindly peanut millionaire Jimmy Carter declared any encroachment on U.S. oil interests in the Persian Gulf "will be repelled by any means necessary, including military force."

Carter’s successor, Ronald Reagan, followed up on that proclamation by supporting Iraq in its war with Iran, a country where a U.S.-installed tyrant was overthrown in 1979 and which Washington feared might embrace partnership with the Soviet Union. (That Reagan also came to secretly supply arms to Iran is another ironic turn.)

Bacevich concludes that "the War for the Greater Middle East (is) a diversion that Americans can ill afford." The U.S. is kidding itself about being able to steer the course of events in the region, he says.

Furthermore, he says it has had a negative impact on domestic freedom and security in the U.S. "One day the American people may awaken to this reality. Then and only then will the war end."

The subject matter is heavy, but America’s War is written in clear, reader-friendly prose. If you seek military history with a critical eye, it’s probably worth the $40.

Saturday, February 13, 2016

Review: Democracy in Black

Published 13 February 2016 in the Winnipeg Free Press:

Democracy in Black: How Race Still Enslaves the American Soul
By Eddie S. Glaude Jr.
Crown Publishing, 274 pages, $34

Reviewed by Mike Stimpson

The United States has had a black president in the White House for seven years, but racial inequality continues to make democracy in that country a lie.

That, in a nutshell, is the message of Princeton University scholar Eddie S. Glaude Jr.’s passionate and thought-provoking new polemic, published in time for Black History Month.

Glaude chairs Princeton’s African American Studies department. His previous books include an examination of race and religion in 19th-century America, which won an award from the Modern Language Association.

He says racism is an ingrained feature of American society and "not just a symptom of bad, racist people who fail to live up to pristine ideals."

At the heart of it all is a "value gap" — a common belief that white people are more valuable than others. In other words: Black lives matter, but white lives matter more.

Glaude likes the Black Lives Matter movement that arose after people got fed up with police shooting unarmed black men, and he points to its protests as appropriate grassroots response to an all-too-often deadly part of America’s value gap.

The value gap is also evident in U.S. society’s collective shrug at how the mortgage foreclosure crisis hit African-Americans especially hard, he writes. While white Americans lost 11 per cent of their wealth between 2007 and 2010, black Americans lost 31 per cent.

A Great Black Depression has wreaked profound damage upon black America, he says, yet "what’s really scary is how little anyone outside black America seems to care." He laments that "America has turned its back on poor people, especially poor black people."

Glaude contends that liberals, including the black president, kid themselves that the system itself isn’t broken. They think the solution lies in greater inclusion of black people as individuals striving for success in America, "without closing the value gap." That seems like folly to Glaude.

The "cruel irony" of black liberal thought, he says, is that it plays into the hands of those white Americans who want to pretend there is no historical inequality, and want to hear no more about past and present injustices.

Glaude despairs that traditional black leadership — the likes of Al Sharpton and Jesse Jackson — won’t change things. In fact, he thinks their self-aggrandizing style of leadership (Sharpton always puts himself in front of cameras) is doing more harm than good by diverting attention away from the real issues and problems of everyday black Americans.

Instead, Glaude finds hope in the kind of grassroots leadership he witnessed in Missouri after the August 2014 shooting of Michael Brown by a police officer. There he saw "young people engaged in acts of civil disobedience to disrupt the traditional theater of America’s racial politics," without a Sharpton-style leader putting himself at the front of marches.

"We should follow their lead," he declares. He hopes for a grassroots movement that will change the way Americans think of both government and their black fellow citizens.

Glaude says America needs a "revolution of value and a radical democratic awakening" to make its society live up to stated ideals. He offers examples of what he has in mind, but no blueprint for the movement. That’s not really a criticism, since such a blueprint seems too much to ask of one person.

Anyone interested in U.S. politics or social-justice issues will enjoy reading this sharp, forceful call for change. Like fellow Princeton firebrand Cornel West, Glaude confronts America with some hard truths and challenges it to be the country it pretends to be.

Friday, November 20, 2015

Review: Trees on Mars

Published 14 November 2015 in the Winnipeg Free Press:

Trees on Mars: Our Obsession with the Future
By Hal Niedzviecki
Seven Stories Press, 320 pages, $19

Reviewed by Mike Stimpson

There's a scene in the 1986 film Half Moon Street in which a banker at a dinner party says the world isn't billions of people, but only a few thousand; there are smatterings of individuals in the globe's major cities who matter, he's saying, and all the rest of us don't.

Early chapters of Toronto writer Hal Niedzviecki's thought-provoking fourth non-fiction book (he's also a novelist) bring that scene to mind as he describes how lucrative "challenges" and competitions sponsored by the ultra-rich incentivize tech geniuses to come up with ways to improve civilization with forward leaps in innovation.

That competition approach is supplemented by high schools, colleges and universities with corporate-sponsored programs designed to, in Niedzviecki's words, "prepare students to get to the future first." By which he means anticipating or "knowing" what comes next and developing the right innovations to make the most of the future.

It's an elitist outlook. Like the pompous man in the movie, proponents of this perspective think only a small percentage of humanity (the very wealthy and the very smart) matters and the rest of us are relying on them.

Niedzviecki contends the way we think of the future has changed in two key ways: We now think we can control it, and there seems to be a consensus we must compete with each other to "own" it. This is "a vast systemic shift in our consciousness," he says.

The elite-centred drive to own or "win the future" is all about competition, profit, private greed and individualism. There's not much talk of community or the masses, except as a market for future-conquering innovations.

It wasn't always so, Niedzviecki points out. Getting to the moon was presented as something for all of America in the 1960s. The world's fairs were showcases of technology with the promise of making everybody's life better.

Now the future is a source of anxiety. Youth feel pressure to be among the winners, because life for the losers won't be easy.

Anxiety about "owning the future" comes through when Niedzviecki meets with nine recent university graduates in Toronto. He asks them to jot down a few words on "what you think about when you think about the future," and the group mostly responds with expressions of "their present-day yearning for jobs, stability, a clear path." They don't declare bold dreams of a better world for humanity; they want economic security for themselves and worry they'll not see it for a long while, if ever.

Whether the owning-the-future ideology really is as pervasive and influential as he says is open to debate, but Niedzviecki makes a convincing case it is ultimately toxic.

He also entertains the reader along the way with accounts of visits to academic institutions and tech conferences, not to mention interviews with interesting people such as an Alberta woman who aspires to be among the first Earthlings to live on Mars.

When Trees on Mars is not causing you to worry a little about where society is headed, it is a fun ride. It makes you look forward to what its inquisitive author will produce in the future.

Monday, June 29, 2015

Review: Operation Nemesis

Published 27 June 2015 in the Winnipeg Free Press:
Operation Nemesis: The Assassination Plot that Avenged the Armenian Genocide
By Eric Bogosian
Little, Brown and Company, 376 pages, $31

Reviewed by Mike Stimpson

A sensational murder trial in Germany is at the core of this provocative work of popular history.

On a Berlin street in March 1921, Soghoman Tehlirian killed Mehmet Talat Pasha by shooting the exiled Turkish statesman in the back of the head. There were plenty of witnesses, and Tehlirian freely admitted to the homicide, but a jury acquitted him after a short trial.

The jury sympathized with the 25-year-old defendant, who said he was avenging the 1915 massacre of his parents, siblings and countless other Armenians at the hands of Turkish nationalists led by the man he shot.

What the jury -- indeed, the world -- didn't know at the time was that the slaying of Talat Pasha was part of an international conspiracy to assassinate those behind what would eventually be known as the Armenian genocide of 1915-1916.

Operation Nemesis is the first non-fiction book for Eric Bogosian, an Armenian-American writer and actor best known as the star of the Oliver Stone film Talk Radio (based on a play Bogosian wrote) or as Capt. Ross in a few seasons of Law & Order: Criminal Intent. He set out to write a screenplay about Tehlirian, but instead has produced this moving examination of crimes against humanity and vigilante justice.

The tome has three parts. In Part I, Bogosian traces Turkish-Armenian relations back to early Christianity and explains key events leading up to the "ethnic cleansing" of Christian Armenians by Muslim Turks in the Ottoman Empire when the First World War was young.

The second section is about Tehlirian and the Nemesis conspiracy, named after the Greek goddess of retribution.

Bogosian's skills as a storyteller come out in these middle chapters. Tehlirian is a fleshed-out, three-dimensional character here, an introspective young man so tortured by what might be termed "survivor's guilt" that he is perplexed and disappointed by the cheerfulness of Nemesis teammates in Berlin. His single-minded dedication to the cause makes him a fascinating and sympathetic protagonist.

There's even a love story woven into the narrative. Tehlirian meets a beautiful young Armenian when he's stationed as a soldier in Tbilisi, Georgia, during the war, and reunites with her after the trial. They marry and eventually move to San Francisco, where an Armenian-American millionaire gives the hero a job.

Nemesis operatives assassinated six more former Turkish leaders in Europe in the year or so after the Berlin shooting.

The Tehlirian/Nemesis tale has great movie potential. It's like the story told in Steven Spielberg's Munich, about Israeli operatives getting revenge for slayings committed at the 1972 Summer Olympics.

Unlike the Israelis in Spielberg's film, the Nemesis participants didn't have the resources of a wealthy state (or any state) at their disposal. Also, they were working in a time when international communication was by telegraph.

The book concludes with a few chapters on the emergence of Turkey out of the old Ottoman Empire in the 1920s, Turkey's official denial of the Armenian genocide, and Armenians' continued quest for justice and acknowledgment of the genocide.

The official position of Turkey is that Armenians were not systematically killed and therefore it wasn't genocide. Bogosian contends the Turkish position is hogwash, and has done the research to back up his assessment.

Though he doesn't portray Tehlirian and company as flawless heroes, he clearly sympathizes, saying they "were appealing to a higher, final justice. One that exists somewhere between heaven and earth."

History buffs, especially those who like their history spiced with drama, should appreciate the fine job Bogosian has done in turning an obscure corner of the past into a genuine page-turner.

Sunday, June 28, 2015

S.C.

How did we get to the state
where love and reason lose to hate?
A Dixie boy gets smiling faces
and loathes because they’re not his race’s.

He pledged allegiance to the flag
of the United States of White Supremacy.
Dad got him a Glock for his birthday
because what else to do for a racist son
of Strom Thurmond’s state.

Congregants showed him love —
they saw a visitor and welcomed him
as a brother; he saw witless prey,
victims, sacrifices to his hateful god —
his idol the Statue of Bigotry.

For shame, Dixie. Look at what heritage hath wrought —
a shot, then many more, and many dead.

How did we get to this place
where humanity’s trampled by race?
What’s the route to peaceful end
and a country’s lasting mend?

Saturday, April 4, 2015

Review: The Looting Machine

Published 28 March 2015 in the Winnipeg Free Press:
The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers and the Theft of African Wealth
By Tom Burgis
Public Affairs, 336 pages, $35

Reviewed by Mike Stimpson

For his first book, British journalist Tom Burgis tackles a much-noted paradox: Africa is rich with natural resources, yet the vast majority of Africans live in abject poverty.

Some chalk it up to what's called the "resource curse," but that's more a description than an explanation. Burgis, for years an Africa correspondent for the Financial Times, aims for a deeper understanding and hits his target in The Looting Machine.

The resource curse is, essentially, the idea that countries with lots of mineral wealth tend to have lousy economic development. A wee few in a resource-rich country will become very affluent themselves, while the masses live in crushing destitution.

It's not unique to Africa, but the resource curse seems to apply especially well to the sprawling land mass that's the cradle of our species and home to about 15 per cent of humans but only two per cent of global GDP.

The continent has 40 per cent of the world's gold reserves, 15 per cent of petroleum reserves, 80 per cent of platinum reserves, and much of the planet's diamonds and copper, yet the economic reality for the masses living in African countries flush with those sought-after commodities is rather bleak.

Consider Angola as an example. The former Portuguese colony has an abundance of oil, sizable diamond mines and impressive economic growth that has outpaced China's in some of the 13 years since a protracted civil war ended there. Yet three in four residents of Angola's capital city, Luanda, live in crime-ridden slums without reliable supplies of electricity, and 40 per cent of Angolans live in what the World Bank defines as "extreme poverty."

It's a similar story in oil-endowed Nigeria, where two-thirds live in extreme poverty, and in the Democratic Republic of Congo (formerly Zaire) with its vast wealth of gold, cobalt, copper, diamonds and tantalum. Extreme poverty is reality for about nine out of 10 people in Congo.

In these and other sub-Saharan countries, having great volumes of minerals and gems in the ground has not at all meant economic security for the average citizen.

Explanations vary. Some put the blame on Africa's exploitative colonizers of the past and the International Monetary Fund's neoliberal conditions for "helping" countries in crisis. Others say Africans constantly stymie development with their own "tribal" strivings for greater shares of the wealth.

Cynics and apologists for global capitalism contend that Western journalists and charities are painting a false picture and Africans are, by and large, doing OK.

Burgis, with the benefit of his years of reporting from many locations, gives us his take on the situation. His book details how Africa is being looted by indigenous elites in concert with powerful multinational corporations.

And the big foreign companies aren't just European and North American anymore. China has wedged its way into the racket, largely through the dealings of a shadowy corporation with a mysterious captain named Sam Pa. The 88 Queensway Group, or China International Fund, forged a partnership with Angola's state-owned oil company several years ago, and has since made deals with resource kingpins in other mineral-rich African states.

Through Queensway and its many companies, China has staked its claims on resources to become part of what Burgis describes as a modern colonial-type system that revolves around unholy alliances between "unaccountable African rulers" and rapacious foreign capitalists.

China's doing well by its arrangements with African kleptocracies, as are Western mining and oil companies, but the poor remain very poor.

If you're curious about why the masses in resource-rich Africa are so painfully impoverished, this hard-hitting and eye-opening exposé is worth a look.