Best Practices Natural Disasters Action Plan

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Milton Watts
5 years ago
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2 Best Practices Natural Disasters Action Plan

3 MODERATORS: Jeannie Chiaromonte, CAR Vice President / National Remarketing Manager Bank of America Chuck Novince, CAR Vice President National Accounts Manheim Corporate

4 The National Corvette Museum Sinkhole Disaster Feb, 2014

5 Flood

6 U.S. Flood Insurance Loss Statistics Jan 1, 1978 through Sep 30, 2001: RankingTotal Payments 1. Texas $2,249,450, Louisiana $1,542,959, Florida $1,479,585, New Jersey $577,019, North Carolina $550,946, South Carolina $414,951, Missouri $407,742, New York $360,534, California $353,244, Pennsylvania $313,186, Flash flooding is the leading cause of weather-related deaths in the U.S. - approximately 200 deaths per year Over 50% of floodrelated drowning are vehicle related

7 Tornadoes

8 How many tornadoes hit the U.S. yearly? Tornado reporting methods have changed a lot in the last several decades, so the officially recorded tornadoes are believed to be incomplete. Although the actual average is unknown, recent trends indicate the number is around 1,300.

9 Hurricane

10 AREA U.S. Coastline (Texas to Maine) Hurricane Activity Saffir/Simpson category CATEGORY Major ALL Hurricanes Texas North Central South Louisiana Mississippi Alabama Florida Northwest Northeast Southwest Southeast

11 Earthquakes

12 Earthquakes in the United States for Magnitude to to to to to to to to to No Magnitude Total *5237 *3836 Estimated Deaths

13 Snow storm

14 How Bad Can It Be???? During the southern hemisphere winter of 1983, temperatures at Russia's Vostok research station in Antarctica plunged to a frighteningly cold minus degrees Fahrenheit, which is 54 degrees colder than the winter average there and the coldest temperature ever recorded on Earth. For comparison, the coldest temperature ever recorded in the lower-48 United States was minus 70 degrees F (-57 degrees C) at Rogers Pass, Mont., on Jan. 20, 1954.

15 Hailstorm

16 National Hail Statistics 2012 There were 7,031 major hail storms in 2012, according to statistics culled from NOAA's Severe Storms database, with the largest number of severe hail storms occurring in May (1,689 storms), March (1,146 storms), and April (1,053 storms). Texas had the largest number of severe hail events in 2012, followed by Kansas, Nebraska, North Carolina, and Oklahoma. Damage caused by wind and hail cost State Farm and its policyholders more than $3.9 billion in 2012, according to an April 2013 analysis by the insurer.

17 How Far Would You Be Willing To Go For Your Customer?

18 Goals Develop a Disaster Recovery Business Continuity Plan: Maintain Critical Business Operations continue business as normally and quickly as possible Protect Market Position a wounded business is vulnerable to competition. Protect Customer Relationships constant communication with customers is essential to maintain strong relationships. If the customer is aware of the recovery progress and is given access to the recovery status, they will be less likely to begin looking elsewhere. Preserve Financial Image outstanding performance during and after a crisis can enhance future customer opinion of management skill.

19 Identifying Risk Focus (Indentify / Plan / Respond / Recover) Common weather exposures, while others such as proximity to airport, rail spurs, or chemical plants are unique. Lane accidents are unique to the auto auction industry. Preparing a Plan Detailing policies and procedures that should be followed in the event of property damage or life threatening conditions to those at the auction. Emergency Response Plan to heed warnings, take action on protecting persons and property and assessing damage Business Recovery Short and long term operations during the period of restoration

20 Disaster Stages Emergency Response Business Recovery Warning Advance notice of potential event Protect people Protect property Life-Safety Evacuation Accounting for persons Preventing injury First Aid Damage Assessment Short-Term Long-Term Damage assess Mitigation Estimate impact Interim operations Repairs Restoration Ongoing operations Resumption of impacted operations $ $ Event Timeline (Hours-Days) (Days-Weeks) (Weeks-Months) COST TO RECOVER Page 20

21 Disaster Recovery KISS Method Make sure key personnel have specific jobs Five Recommended Teams 1) Recovery Management 2) Damage Assessment 3) Temporary Operations 4) Asset Replacement 5) External Affairs

22 CONSIGNORS BUSINESS CONTINUITY PLAN Contractual Standard: Vendor has business continuity plan in place according to contractual standards Validation: Review vendor s business continuity plan ensuring it is updated periodically (including current Business Licenses and Insurance Certificates) Confirm test of the plan occurs Evidence: Obtain copy of vendor s business continuity plan Obtain results of most recent test of the plan

23 Q & A

24 A Special Thanks To: Michael J. Rohdy Area Sr. Vice President Arthur J. Gallagher Risk Management Services, Inc. Mike Roy Area Vice President Arthur J. Gallagher Risk Management Services, Inc.

Superstorm Sandy What Risk Managers and Underwriters Learned

Superstorm Sandy What Risk Managers and Underwriters Learned Gary Ladman Vice President, Property Underwriting AEGIS Insurance Services, Inc. Superstorm Sandy Change in the Weather Recent years appears