state of alabama department of finance division of risk management kim huggins claims manager
TRANSCRIPT
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State of AlabamaDepartment of Finance
State of AlabamaDepartment of Finance
Division of Risk Management
Kim Huggins
Claims Manager
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ALABAMA
April 27, 2011
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The State Insurance Fund
Originated in 1923 to insure state owned properties, K-12 school systems and state university properties
28,000 +/- building/structures surveyed every three years by in house staff
At FY10 close, $46 Billion insured values
Claims are handled by in house staff and/or independent adjusting firms on contract with SIF.
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State of Alabama 2011 Property Program
One Reinsurer provides $250M x/o $750M Excess Capacity
One Reinsurer provides $250M x/o $500M Excess Capacity
Three Reinsurers provide $300M x/o $200M Excess Capacity
Nine Reinsurers provide $100M x/o $100M
Seven Reinsurers provide $50M x/o $50M
Six Reinsurers provide $50M x/o SIR
S.I.R.= $3.5M All Other Perils Occurrence/$10M Named Storm Occurrence/ $10 M Annual Aggregate
$1 B
$750M
$500M
$200M
$100M
$50M
$3.5M
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Statewide Impact ofApril 27, 2011
62 Tornados - 3 EF-5- 8 EF-4- 7 EF-3
240 Deaths
$3 Billion In
Insured Losses
120,000Claims
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Historic Tornado OutbreakApril 27, 2011
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IMPACT OF APRIL 27, 2011
ON SIF$110M Reserved
588 Claims
215 Locations
8 Exceeding $5M
6 K-12 Schools
1 Community College
1 State Park
10 Exceeding $1M
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Hackleburg Elementary/High School
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Phil Campbell High School
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Alberta Elementary School
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SIF Comparison of Catastrophe Losses
Category Ivan Cat 46
Date of Loss 9/16/2004 4/27/2011
Counties Impacted 53 33
Agencies Impacted 102 60
Locations Impacted 500 215
Number of Claims 2453 588
Amount of Loss $30 Million $110 Million
Location Claims $5M + 1 8
Location Claims $1M + 3 10
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Summary Analysis
Ivan was a Category 3 Hurricane
Impacted a large portion of Alabama
Major damage to only a few locations
Cat 46 was a series of EF 3, 4 & 5 Tornadoes
Impacted a large portion of Alabama
Major damage to a large number of locations
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ISSUES
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Coordination
Coordination with Excess Carriers Assignment of the lead adjuster
Third Party Experts Engineers
Estimators
Accountants
Salvagers
Broker’s Role.
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Communication
Communication with SIF Policy Holders
Role of Risk Management
Immediate and Clear Instruction
Availability of Advance Funds.
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Independent Adjusters
Role of Independent Adjusters
Our Representative
Works with Excess Adjusters and Experts
Directs and Manages Claim
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Delays
By Excess Experts to Provide
Building Estimates
Scopes
By SIF Policyholders to
Initiate Emergency Restoration due to
State Bid Law rules.
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On A Positive Note
Our Broker helped us resolve issues quickly and is
currently working with excess on specific guidelines to
follow after a CAT Loss
Our Independent Adjusters remained loyal to the SIF
The SIF made advance funds immediately available to
hardest hit locations.
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ALABAMADepartment of FinanceRisk Management Division
Questions?