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Preparedness

Presented by Louis Gritzo, Vice President of Research, FM Global.

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Preparedness

  1. 1. Create a Win-Win Wind Situation to Survive the Next Hurricane<br />Dr. Louis Gritzo<br />Vice President, Research<br />
  2. 2. Agenda<br />Hurricane risk is real<br />Loss is preventable<br />Simple, cost-effective solutions<br />
  3. 3. Hurricane risk is real. <br />
  4. 4. Hurricane risk is real. <br />$9-Trillion exposed<br />$8-Billion annual loss<br />7 of 10 in 5 years<br />
  5. 5. Hurricane risk is real. <br />$45<br />$40.0<br />$40<br />All but Two have been Windstorms!<br />$35<br />$30<br />$25<br />$21.5<br />$20.0<br />$20<br />$15.9<br />$15<br />$11.0<br />$8.0<br />$7.8<br />$10<br />$6.6<br />$6.6<br />$6.4<br />$6.1<br />$5<br />$0<br />Hurricane Ivan (2004)<br />Hurricane Hugo (1989)<br />Typhoon Mireille (1991)<br />Hurricane Charley (2004)<br />Hurricane Andrew (1992)<br />Hurricane Katrina (2005)*<br />Sept. 11 Terror Attack (2001)<br />Windstorm Daria (1990)<br />Northridge Earthquake (1994)<br />Windstorm Lothar (1999)<br />
  6. 6. Hurricane risk is real. <br />Coastal property <br />
  7. 7. Hurricane risk is real. <br />Global markets<br />
  8. 8. Hurricane risk is real. <br />Climate change? <br />
  9. 9. Hurricane risk is real. <br />
  10. 10. Hurricane risk is real. <br />
  11. 11. Hurricane risk is real. <br />Northeast Hurricane Tracks<br />AIR<br />MIT<br />RMS<br />
  12. 12. Hurricane risk is real. <br />80% operations exposed<br />50% not prepared<br />45% negative impact <br />Companies are unprepared for the worst. <br />source: FM Global Natural Disaster Business Risk Study - 2008<br />
  13. 13. Hurricane risk is real. <br /><ul><li>“Disaster Amnesia”
  14. 14. Risk Underestimation
  15. 15. Procrastination
  16. 16. Short-Term Focus
  17. 17. Solution Dismissal</li></ul>www.fmglobal.com/disaster<br />
  18. 18. Loss is preventable. <br />Best Practices = $$$<br />Weak vs. Strong RM<br />20x greater loss<br />29X greater risk from hurricane loss<br />7x more costly<br />www.fmglobal.com/study<br />
  19. 19. Loss is preventable. <br />Windstorm Loss from 2004 Hurricanes<br />Benefit from risk improvement<br />$430M<br />
  20. 20. Loss is preventable. <br />Hurricane Katrina (2005)<br />49% reduction attributable to risk improvement<br />1000<br />800<br />985<br />600<br />Gross Loss in US$ <br />Millions<br />400<br />505<br />200<br />0<br />Model Predicted<br />Actual Loss<br />Loss<br />
  21. 21. Hurricane Katrina (2005)<br />84% reduction in average loss<br />Average Wind Loss / $100 TIV<br />Loss is preventable. <br />
  22. 22. Loss is preventable. <br />
  23. 23. Loss is preventable. <br />September 5 – Frances<br />September 26 – Jeanne<br />
  24. 24. Simple, cost-effective solutions.<br />
  25. 25. Simple, cost-effective solutions.<br />
  26. 26. Simple, cost-effective solutions.<br />
  27. 27. Simple, cost-effective solutions.<br />
  28. 28. Secure building envelope including doors and other openings<br />Secure roof deck & flashing - emphasize edges and corners<br />Take reasonable precautions in the hours immediately before loss<br />1<br />2<br />3<br />Simple, cost-effective solutions.<br />
  29. 29. Simple, cost-effective solutions.<br />
  30. 30. Simple, cost-effective solutions.<br />
  31. 31. Simple, cost-effective solutions.<br />
  32. 32. Simple, cost-effective solutions.<br />
  33. 33. Simple, cost-effective solutions.<br />
  34. 34. Simple, cost-effective solutions.<br />Washed away?<br />Blown in?<br />Blown off?<br />Shut down?<br />
  35. 35. Surviving the Next Hurricane <br />Rhode Island is vulnerable, people will forget <br />You can beat Mother Nature<br />Cure disaster amnesia <br />Eliminate vulnerabilities now<br />
  36. 36.
  37. 37. Questions<br />
  38. 38. Surviving the Next Hurricane <br />Rhode Island is vulnerable, people will forget <br />You can beat Mother Nature<br />Cure disaster amnesia <br />Eliminate vulnerabilities now<br />

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