Before and After the Storm Natural Disasters and Crisis Management 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
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 • 2
Questions to Consider What can be done What are the worst things to prevent or decrease When is the worst time that that could happen to my the impact of the an event could occur? organization? incident / event? Impact to external stakeholders What is the communication How could a disaster (e.g. community / process during the crisis? impact employees? public safety, local emergency access) 3
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! 4
Business Continuity Plans Business Continuity Plans are as varied as the businesses they support and the associated hazards faced, but that is why they are worthwhile. CUSTOMIZED FOR YOUR BUSINESS STANDARD People Financial Technology Connectivity BUSINESS 5
BEFORE THE STORM 6
People & Communication 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? • 7
Financial Impacts & Knowing Your Coverage Quantifying best case vs. worst case scenarios using advanced analytics loss estimates • RSM Risk Modeling − 8
Financial Impacts & Knowing Your Coverage 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 9
Financial Impacts & Knowing Your Coverage Hurricane Harvey vs. Portfolio Exposure Heat Map / Hurricane Irma vs. Portfolio Exposure Heat Map 10
Financial Impacts & Knowing Your Coverage Deductibles – Applicable Coverage – What coverage will be triggered? How will deductible be applied? 11
Asset Preparation/Property Risk Practical Applications: Documentation: Inspect properties Keep records of pre-storm − − preparedness Secure loose equipment/ − property Document notifications/updates − to tenants Inspect roof drains, remove − debris Keep copies of employee − contact list & continuity plan Place sandbags − Attach window protection − 12
Severe Storm Preparedness Summary Know Your Risk • Review lessons learned from past events − and apply to preparedness plans Share Your Plan Preserve Critical Services Necessary to Continue • • Discuss your plan with all employees or Recover Operations − Consider electrical services, water, and − Employee Safety communications – contact service • Advise employees to have 3-5 days of providers accordingly − provisions, reinforce prudent practices, and update/validate contact lists Secure and Protect Building Openings • Anticipate wind-driven debris and secure − Consider which Assets are Critical and How to windows/openings • Protect Them Elevate or secure critical equipment Review Emergency and Disaster Recovery Plans • − Use plan outline to consider specific − threats and anticipate staffing, supplier, and community impact 13
AFTER THE STORM 14
Stages of Response (Example: roadmap to recovery) Stabilize/Assess Remediation/Recovery Rinse/Repeat Phase I: 24 Hours Phase II: 48-72 Hours Phase III: Continuity/Alt Ops Function/Owner Incident Commander Communication, method of status reports Plan development and organization Establish process Security, Safety, Safety tips, rounds Revised protocols, incident investigation and Compliance reporting Health, Environmental (link do documents) reporting (link to standards) Operations, Facilities Assessments and protective measures Emergency repairs, monitoring damage Plan to normal ops (link to plans) IT, Finance, Legal, Communication, threat assessment Contractor support Alternative supply, temp services, compliance Procurement, etc. (link to contacts) (This is a generic model – customize according to operations, hazard and applicable standards) 15
Activate Your Plan – Initiate BCP Put in place alternative Contact critical suppliers & methods to business partners continue business ops Code Incident − − requirements, response curfews, team liaise communicati local ons restrictions authorities 16
Operations & Site Stabilization 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 17
Claims & Coverage Site Inspection with Adjuster Daily calls & reports with relevant • − Risk management/property manager/ departments & broker − broker work together to coordinate Communication with stakeholders − Identify damage Property management communicates − − Reach agreed scope of repairs/pricing with tenants, tenant reports of damage/ − impact Applying Coverage Continuous coordination/ • − What’s covered/what’s not? How are communications with risk management − deductibles applied? What falls outside & broker coverage? Is there an NFIP to consider? − Continuous Communications • 18
Avoid Potential issues − 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 � Invoices with back-up and details of time/materials o 19
Lessons Learned What could be improved? What worked? What didn’t work? Plans for the future? 20
Thank You Stephen Fox Mitchell Dane Henry Lesa Medeiros Theresa Severson Sarah Sherman SVP Property Risk Claims Manager, Retail VP Claims Advocacy , VP Insurance & Risk, EVP Property Practice Leader, Control Leader, Properties of America JLT Specialty US Retail Properties of America JLT Specialty US JLT Specialty US Inc. lesa_medeiros@jltus.com Inc. sarah.sherman@jltus.com stephen.fox@jltus.com Dane-henry@rpai.com severson@rpai.com 21
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