before and after the storm natural disasters and crisis
TRANSCRIPT
W W W . C H I C A G O L A N D R I S K F O R U M . O R G
Before and After the Storm
Natural Disasters and Crisis Management
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Introduction
• Theresa Severson, VP Insurance & Risk, Retail Properties of America Inc. • Mitchell Dane Henry, Claims Manager, Retail Properties of America Inc. • Sarah Sherman, EVP Property Practice Leader, JLT Specialty US • Lesa Medeiros, VP Claims Advocacy , JLT Specialty US • Stephen Fox, SVP Property Risk Control Leader, JLT Specialty US
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Questions to Consider
What are the worst things that could happen to my
organization?
When is the worst time that an event could occur?
What can be done to prevent or decrease
the impact of the
incident / event?
What is the communication process during the crisis?
How could a disaster impact employees?
Impact to external stakeholders
(e.g. community / public safety, local
emergency access)
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Insurance Program and Loss Prevention
• Program assessment and evaluation of limits
− Quantifying key risk & exposures – property advanced analytics
− Corporate risk tolerance
− Traditional insurance vs. alternative risk transfer
− Policy wording key – covering the claim before it occurs!
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Business Continuity Plans are as varied as the businesses they support and the associated hazards faced, but that is why they are worthwhile.
Business Continuity Plans
STANDARD CUSTOMIZED FOR YOUR BUSINESS
People
Financial
Technology
BUSINESS
Connectivity
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BEFORETHESTORM
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• Internal: stakeholders, insurance & risk management, accounting, communication dept. − Conference calls, updated storm information, potential risks − Employee safety
! Consider employees calling central number outside of area to advise their status ! Keep copies of contact list & continuity plan
• External: Insurance broker/insurers, customers, business partners, vendors − Insurance Broker: Discuss coverage/financial impact, alert Insurers/TPA, share
information − Vendor/Contractors: arrange contracts/commitment to respond to your assets as
priority − Customers & business partners: communications/updates
• Publicly Traded Company: What are the obligations to report possible financial risks?
People & Communication
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• Quantifying best case vs. worst case scenarios using advanced analytics loss estimates
− RSM Risk Modeling
Financial Impacts & Knowing Your Coverage
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• Geospatial analysis of catastrophe exposure – CATography, JLT’s proprietary mapping program
− Evaluates risk in current portfolio by providing geospatial view of TIV aggregation and
resulting exposure by peril − Assesses impact of any changes to exposure brought about by additions or deletions
to portfolio − Visualizes loss impact by comparing portfolio to historical catastrophic event footprints − Provides real-time information and tools to assess the level of exposure to portfolio, in
the event of a large present-day catastrophe
Financial Impacts & Knowing Your Coverage
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Hurricane Harvey vs. Portfolio Exposure Heat Map / Hurricane Irma vs. Portfolio Exposure Heat Map
Financial Impacts & Knowing Your Coverage
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Financial Impacts & Knowing Your Coverage
Applicable Coverage – What coverage will be triggered?
Deductibles – How will deductible be applied?
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Asset Preparation/Property Risk
Practical Applications: − Inspect properties
− Secure loose equipment/property
− Inspect roof drains, remove debris
− Place sandbags
− Attach window protection
Documentation: − Keep records of pre-storm
preparedness
− Document notifications/updates to tenants
− Keep copies of employee contact list & continuity plan
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Severe Storm Preparedness Summary
• Know Your Risk − Review lessons learned from past events
and apply to preparedness plans
• Share Your Plan − Discuss your plan with all employees
• Employee Safety − Advise employees to have 3-5 days of
provisions, reinforce prudent practices, and update/validate contact lists
• Consider which Assets are Critical and How to Protect Them − Elevate or secure critical equipment
• Preserve Critical Services Necessary to Continue
or Recover Operations − Consider electrical services, water, and
communications – contact service providers accordingly
• Secure and Protect Building Openings
− Anticipate wind-driven debris and secure windows/openings
• Review Emergency and Disaster Recovery Plans − Use plan outline to consider specific
threats and anticipate staffing, supplier, and community impact
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AFTERTHESTORM
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Stages of Response
Phase II: 48-72 Hours Phase I: 24 Hours
Phase III: Continuity/Alt Ops
(Example: roadmap to recovery)
Stabilize/Assess Remediation/Recovery Rinse/Repeat
Function/Owner
Incident Commander Communication, method of status reports Plan development and organization Establish process
Security, Safety, Health, Environmental
Safety tips, rounds (link do documents)
Revised protocols, incident investigation and reporting
Compliance reporting (link to standards)
Operations, Facilities Assessments and protective measures Emergency repairs, monitoring damage Plan to normal ops (link to plans)
IT, Finance, Legal, Procurement, etc.
Communication, threat assessment Contractor support (link to contacts)
Alternative supply, temp services, compliance
(This is a generic model – customize according to operations, hazard and applicable standards)
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Activate Your Plan – Initiate BCP
Contact critical suppliers &
business partners
Put in place alternative methods to
continue business ops
− Incident response
team liaise local
authorities
− Code requirements,
curfews, communications restrictions
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• Employee Safety − Account for all employees – notify emergency responders if in peril − Consider employee needs – provide shelter, food, gas
• As soon as safe, inspect each property − Take photos of damage/videos – What are first indications of damage? − Secure building – assess need for private security if necessary − Prevent further damage
• Engage Vendors/Contractors − Emergency repairs – prevent further damage − Coordination between department regarding specific inspections, ie: roofing,
buildings, etc. − Documentation of repairs, invoices with detail/back-up, work orders with detail,
status reports
Operations & Site Stabilization
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• Site Inspection with Adjuster − Risk management/property manager/
broker work together to coordinate − Identify damage − Reach agreed scope of repairs/pricing
• Applying Coverage − What’s covered/what’s not? How are
deductibles applied? What falls outside coverage?
− Is there an NFIP to consider?
• Continuous Communications
− Daily calls & reports with relevant departments & broker
− Communication with stakeholders − Property management communicates
with tenants, tenant reports of damage/impact
− Continuous coordination/communications with risk management & broker
Claims & Coverage
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− Use resources from your broker – they are your advocate and ally − Understand your coverage before the storm − Prepare your properties and your people – set expectation of after the storm process − Include your broker claim advocate
! When working with adjuster/Insurer consultants ! Reach agreed scope of damage/pricing ! Documentation of work performed
o Invoices with back-up and details of time/materials
Avoid Potential issues
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Lessons Learned
What worked? What could be improved?
What didn’t work? Plans for the future?
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Thank You StephenFox
SVPPropertyRiskControlLeader,JLTSpecialtyUS
TheresaSeversonVPInsurance&Risk,
RetailPropertiesofAmericaInc.
MitchellDaneHenryClaimsManager,RetailPropertiesofAmerica
SarahShermanEVPPropertyPracticeLeader,
LesaMedeirosVPClaimsAdvocacy,JLTSpecialtyUS