Weather Trends. Friday, March 1, 2013, 8:30 a.m.

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Weather Trends Friday, March 1, 2013, 8:30 a.m. Mike Smith Senior Vice President, Chief Innovation Executive Accuweather Enterprise Solutions Wichita, Kan.

1 Weather Trends Friday, March 1, 2013, 8:30 a.m. Mike Smith Senior Vice President, Chief Innovation Executive Accuweather Enterprise Solutions Wichita, Kan. Mike Smith is one of America s most innovative and honored meteorologists. Mike knew he would be a meteorologist at age 5, when a major tornado moved through his neighborhood. After receiving his meteorology degree from the University of Oklahoma, he worked as a television meteorologist in St. Louis, Oklahoma City, and Wichita, Kan. He is the first person ever to do a live telecast of a tornado. In 1981, Mike founded WeatherData, Inc. in Wichita. Under his leadership, the company pioneered pinpoint severe-weather warning services and technologies serving transportation, manufacturing, government, and more. Mike has received 19 patents in weather science, emergency management, and search and rescue. A fellow of the American Meteorological Society, he has received the association s award for Outstanding Contribution to the Advance of Applied Meteorology and its award for Outstanding Service to Meteorology by a Corporation twice. In 2006, WeatherData was acquired by AccuWeather, Inc., and has now become AccuWeather Enterprise Solutions, Inc., the leading company in the field of weather risk mitigation. Mike serves AccuWeather and AccuWeather Enterprise Solutions as senior vice president and chief innovation executive. In addition to his work at AccuWeather Enterprise Solutions, Mike is a frequent speaker and author on popular and technical weather-related topics. He has appeared on the Discovery Channel, the History Channel, Fox News, and all of the major networks. Recently, Greenleaf Book Group published Mike s first book, Warnings: The True Story of How Science Tamed the Weather. Mike lives in Wichita and is married with three grown children. Session Description: The last few years have seen some record-breaking weather events and insured losses that resulted from them. In fact, the last three years have been very active in terms of record-breaking snowfall on the East Coast and devastating tornadoes in the South. Have these disasters been a break from normal weather or is this a change in the overall pattern? Should we expect these conditions to continue or maybe even get worse? Join us for an interactive and enlightening session with meteorologist Mike Smith of Accuweather, a leading weather expert.

2 Top Three Session Ideas Tools or tips you learned from this session and can apply back at the office

3 Weather Trends Session Outline Overview Is Climate Change a Factor? Earth s Temperatures Have Stabilized No Upward Trend in Violent Tornadoes No Upward Trend in Hurricanes Worldwide 7.5 Years A Record Without a Cat. 3 or Stronger Hurricane in the U.S. Because of Changes in Business Process Extreme Weather Causes Extreme Business Losses Fifty Years Ago vs. Today Why Does Every Business Need a Plan? Hurricane Sandy Example Joplin Tornado Example Weather Effects on Economy Weather Risk Mitigation Program Best Practices o Cell and Landline Service Outage o Power Outage Write Premium Contact With Distant Provider Pay Premium Transportation Rate With Guaranteed Delivery With a Regional or National Company Questions to Ask Allow Your Employees to Use Your Building As a Shelter The Plan Inform Your Employees About Your Weather Procedures and Weather Information Source Use One Source for Storm Warnings Believe the Warning, Not Your Eyes AccuWeather s Warnings What Can the Insurance Industry Do to Mitigate Losses? Questions & Answers

4 The Year of the Ill Wind Michael R. Smith, C.C.M. Senior Vice President/Chief Innovation Executive Copyright 2013 AccuWeather Enterprise Solutions. E very part of the U.S. Has Extreme Weather Heat / cold Tornado Hurricane Lightning Flood / Flash Flood Tsunami Hail 2013 NAMIC Commercial Lines Seminar - Smith Page 1 of 23

5 Unusual Weather Happens: Springfield, Mass. Tornado New England Hurricane (2nd most costly) California Hurricane EXTREME WEATHER WILL AFFECT YOU IT S ONLY A MATTER OF TIME 2013 NAMIC Commercial Lines Seminar - Smith Page 2 of 23

6 Is Climate Change a Factor? Earth's Temperatures Have Stabilized Is Climate Change a Factor? No Upward Trend in Violent Tornadoes 2013 NAMIC Commercial Lines Seminar - Smith Page 3 of 23

7 Is Climate Change a Factor? No Upward Trend in Hurricanes Worldwide Is Climate Change a Factor? 7.5 Years A Record Without a Cat. 3 or Stronger Hurricane in U.S NAMIC Commercial Lines Seminar - Smith Page 4 of 23

8 Because of Changes in Business Processes Extreme Weather Causes Extreme Business Losses Fifty Years Ago: 2013 NAMIC Commercial Lines Seminar - Smith Page 5 of 23

9 Today: Why Does Every Business Need a Plan? In Hurricane Sandy, a well-known company had a $73 million, fully preventable loss NAMIC Commercial Lines Seminar - Smith Page 6 of 23

CBS/AP / May 27, 2011, 3:55 PM Joplin tornado hit 4,000 jobs, group

10 Why Does Every Business Need a Plan? Do It Yourself Weather Doesn t Work The loss was FULLY PREVENTABLE. Why Does Every Business Need a Plan? CBS/AP / May 27, 2011, 3:55 PM Joplin tornado hit 4,000 jobs, group says 2013 NAMIC Commercial Lines Seminar - Smith Page 7 of 23

11 Why Does Your Business Need a Plan? How To Construct an Effective Weather Risk Mitigation Program? 2013 NAMIC Commercial Lines Seminar - Smith Page 8 of 23

12 W Best Practices eather Risk Mitigation Program 1. Plan 2. Threat communication 3. Shelter People and Protect Assets 4. Recovery Weather Risk Mitigation Program Best Practices 2013 NAMIC Commercial Lines Seminar - Smith Page 9 of 23

Make an occasional call, keep in practice. Program in direct (7 or 10-digit) emergency numbers (police, fire, etc.). 9-1-1 won t work.

13 Weather Risk Mitigation Program Best Practices Cell and Landline Service Outage At least one satellite phone with outdoor antenna and extra batteries kept fully charged at all times. Maintain a minimum monthly plan. Make an occasional call, keep in practice. Program in direct (7 or 10-digit) emergency numbers (police, fire, etc.) won t work. Weather Risk Mitigation Program Power out for days. How will you refuel generators? 2013 NAMIC Commercial Lines Seminar - Smith Page 10 of 23

Weather Risk Mitigation Program Write premium contact with distant provider. For example, if in hurricane area at least 200 mi. inland. Outside of hurricane area, at least 100 miles away.

14 Weather Risk Mitigation Program Write premium contact with distant provider. For example, if in hurricane area at least 200 mi. inland. Outside of hurricane area, at least 100 miles away. Pay premium transportation rate with guaranteed delivery with a regional or national company. Weather Risk Mitigation Program How long does sheltering take? How long does orderly equipment shutdown take? How is the sheltering decision announced? How are non-safety weather decisions announced? Who makes the decision? (Who, not a committee) 2013 NAMIC Commercial Lines Seminar - Smith Page 11 of 23

Best Practices Allow Your Employees to Use Your Building As a Shelter 1. Have building checked by architect or engineer 2. Purchase minimal supplies for shelter (bottled water, diapers, etc.) 3.

15 Best Practices Allow Your Employees to Use Your Building As a Shelter 1. Have building checked by architect or engineer 2. Purchase minimal supplies for shelter (bottled water, diapers, etc.) 3. Mark its location(s) Weather Risk Mitigation Program The Plan Every supervisor should carry it on their smartphone, via the Procedures Feature of SkyGuard Mobile 2013 NAMIC Commercial Lines Seminar - Smith Page 12 of 23

16 Best Practices Inform your employees about your weather procedures and weather information source. Use One Source for Storm Warnings Scientific Research Demonstrates: Fewer Sources are Better! 2013 NAMIC Commercial Lines Seminar - Smith Page 13 of 23

17 Weather Risk Mitigation Program Believe the warning, not your eyes. Weather Risk Mitigation Program Believe the warning, not your eyes NAMIC Commercial Lines Seminar - Smith Page 14 of 23

18 Weather Risk Mitigation Program Believe the warning, not your eyes. W hat Makes AccuWeather s Warnings The Best Choice for Businesses? Warnings tailored to your business unique criteria Warnings issued specifically for your location Exclusive preparation time feature No unnecessary false alarms 2013 NAMIC Commercial Lines Seminar - Smith Page 15 of 23

19 2013 NAMIC Commercial Lines Seminar - Smith Page 16 of 23

20 Why You Should Work With Consistent messaging and terminology. No politics. The National Weather Service never issued hurricane warnings for New York, New Jersey, or surrounding region. Here is NYC Mayor Bloomberg s statement: Although we re expecting a large surge of water, it is not expected to be a tropical storm or hurricanetype surge. With this storm, we ll likely see a slow pileup of water rather than a sudden surge, which is what you would expect with a hurricane, and which we saw with Irene 14 months ago. So it will be less dangerous - but make no mistake about it, there will be a lot of water and low-lying areas will experience flooding. The City s Departments of transportation and Environmental Protection will be deployed throughout the city to address flooding conditions. Why You Should Work With Consistent messaging and terminology. No politics. The National Weather Service never issued hurricane warnings for New York, New Jersey, or surrounding region. Closer to home, in the immediate aftermath of Hurricane Sandy, New Jersey Gov. Chris Christie issued an executive order classifying the storm as a "post-tropical cyclone" rather than a hurricane, pre-empting the scientific evaluation of the National Weather Service, which has yet to make its final determination. Whether Sandy was a hurricane or not makes a big difference in insurance payouts to individual homeowners. If a hurricane, the payouts would be much smaller. In a letter to the Weather Service, New York Sen. Charles Schumer reminded the agency that its scientific judgments could cost his constituents a lot of money. Dr. Roger Pielke, Jr., Wall Street Journal, January 30, NAMIC Commercial Lines Seminar - Smith Page 17 of 23

Why You Should Work With Expertise and Experience: Messaging tailored to

21 Why You Should Work With Consistent messaging and terminology. No politics. Why You Should Work With Expertise and Experience: Messaging tailored to your unique requirements. Warnings tailored to your unique requirements. INSERT TRAIN 2013 NAMIC Commercial Lines Seminar - Smith Page 18 of 23

22 Why You Should Work With Expertise and Experience: Warnings tailored to your unique requirements. Using Extreme Weather to Enhance Sales Matching Inventory to Demand 2013 NAMIC Commercial Lines Seminar - Smith Page 19 of 23

23 Using Extreme Weather to Enhance Sales Weather-Driven Advertising Winter Storm Forecasts and Warnings 2013 NAMIC Commercial Lines Seminar - Smith Page 20 of 23

24 Monitoring Your Supply Chain New from SkyGuard Mobile Close-In Single Site Radar 2013 NAMIC Commercial Lines Seminar - Smith Page 21 of 23

25 New from SkyGuard Mobile Wide-Area Radar Mosaic New from SkyGuard Mobile Thunderstorms, Lightning, and Warnings 2013 NAMIC Commercial Lines Seminar - Smith Page 22 of 23

26 W hat Can the Insurance Industry Do to Mitigate Losses? Fund Gap Filler Radars Incentivize Safe Rooms and Shelters Partner to Give Your Policyholders Apps and Tools Promote Consistent Siren Policies Thank You for Attending Today (316) My blog: mikesmithenterprises.com/blog 2013 NAMIC Commercial Lines Seminar - Smith Page 23 of 23

Extraordinary Tornadoes and Preparedness Best Practices

AccuWeather Enterprise Solutions White Paper Extraordinary Tornadoes and Preparedness Best Practices Presented By: Mike Smith / Senior Vice President, Chief Innovation Executive, Certified Consulting Meteorologist