Planning for the Northeast Hurricane

Transcription

1 Planning for the Northeast Hurricane Inland Marine Underwriters Association May 21, 2013 Bud Trice, Vice President Catastrophe Services

2 Key Points Strategic Issues Tactical Conditions The Lessons Conclusion

3 Traffic What do you think about Sandy? Any worries? Kevin Frawley (10/23) I haven t been terribly impressed with this one. My sense is that it ll be minimal. If it moves noticeably back to the west, it could become something larger. Will know more in 24 to 48. Bud Trice

4 Traffic The conference center has suggested we cancel but I m reluctant to do so. I d like to hold out to see what happens. Kevin O Brien (10/26) Kevin, I think it s time to think about cancellation. Airlines have cancelled all flights into NYC. People aren t going to brave hurricane force winds just to hear us talk about hurricanes. They ll have their own. Good luck!! Bud (10/28)

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6 Sandy - Our Numbers U.S. Mainland 16 States Jamaica & Bahamas 562 adjusters 44,085 calls received Claims volume - Caribbean GTS 1,473 - Vehicles 5,657 - Direct Repair 10,927 - Cat Field Operations 30,061 - Total 48,744

7 Preparation & Response Tropical Depression Formation 10/22 & Tracking Adjuster Stand-By 10/23 PROACT meetings 10/25

8 Impact Forecasting Monday 08:00 17:00 14:00 10/29/12

9 Tidal Surge Plotting

10 Preparation & Response Tropical Depression Formation 10/22 & Tracking Adjuster Stand-By 10/23 PROACT meetings 10/25 First wave of adjusters deployed 10/27 Induction Team to Richmond, VA 10/28 Central in-processing - Temporary license processing - Cost database updates - Client-specific briefings - Deployment to work zone

11 Assignment Acquisition Account Adjusters Claims Alert (Call Center) - Overflow to Claims Alert Canada - Data input - Outbound calling / Triage FTP Transmissions Central Performance Management Units TPA Operations - Full service Claims Department 9,000+ losses - Insureds report directly to Crawford

12 Command Center Performance monitoring Dashboards - Incoming volume - Mapping - Unit workloads - Resource allocation - Operational progress - Queue management Special requests - Client-specific reports - Historical comparisons

13 Command Center Dashboard

14 Regulatory Challenges 16 State regulatory jurisdictions 10 State adjuster licensing regulations U.S. Immigration - Canadian Adjusters Pressure to waive hurricane deductibles Emergency Management - Control of access

15 Executive Orders Regulatory Challenges - Six day inspection requirement (New York) - Five day inspection requirement (New Jersey) New York Website & Report Cards New York announces intent to investigate insurers NJ and NY announce mediation programs to resolve open claims NY assigns DFS Mobile Assistance Unit to assist homeowners with insurance claims

16 On the Ground Challenges

17 Effects on Local Employees Staten Island - Home destroyed - Personal property lost Manhattan - Climbing 46 floors of apartment building - Sleeping at office Long Island - Finding gas at 1:00 a.m. New Jersey - Inability to leave home (streets blocked)

18 Tactical Conditions Access Lodging Travel Issues Regulatory 18

19 Getting There In bound difficulties - 19,500+ flights cancelled - Newark Airport - closed 3 days - JFK Airport - closed 3 days - LaGuardia Airport - closed 4 days

20 Access Impassable Washed out or flooded for days Restricted Residents only

21 Lodging Availability - Stranded business and vacation travelers - Flooded Lower tip of Manhattan - Loss of Power - 39th Street and South - 500,000 people - Displaced Sandy victims - 3,500 families - Emergency responders Result - Greater driving times - Greater distances - Greater fuel usage

22 Travel Issues Restrictions - NYC DOT established travel restrictions at all river crossings including bridges and tunnels between 06:00 an 24:00 hrs. - HOV+3 remained in affect until November 5, 2012.

23 Travel Issues Fuel shortage - Odd/Even rationing 2+ weeks - Colonial Pipeline lost power to pumps - Gas stations had no power to run pumps - Power restored. Continued shortage due to refinery start up - Phillips 66 Bayway, NJ Flooded - Hess Port Reading, NJ - Power Outage (1 week) - Tank farms sustained damage

24 Travel Issues Weather - Unusual to handle Hurricane type claims with snow. - Inspections were difficult - Extra loads on roof systems - Difficult driving

25 New York Executive Order Goal: To help consumers receive their payments sooner Insurers given six days to inspect any/all losses Unintended consequence: - Retool adjustment process - Focus shifts to inspection - Less time reporting and/or closing losses 25

26 New York Executive Order (cont d) In the same Order, NY eased temporary licensing requirements for Public Adjusters. - Unintended consequence: Result - Increased number of Public Adjusters - Increased reinspections with PA s - Increased negotiations - Slower closings!!! 26

27 Key Takeaways Intake capability is driving the need for earlier deployments - Technology has the assignment in our hands quicker than ever Need for better communication with spot-market clients - Set expectations - Ensure that the product delivered is the product desired A REAL hurricane in the Northeastern U.S. will be worse than the industry has planned for.

28 What s Ahead? Remaining losses & supplemental claims Governmental response - Federal aid FEMA & NFIP - Restrictions on rebuild - NY & NJ Community Block Development Grant Funds Post-mortem reviews - Clients - Operations - Technology - Support Adjust response model accordingly

29 Questions? 29