As Hurricane Sally slowly moves over the Gulf Coast in the next few days, historical flooding is predicted from rainfall for parts of Alabama, Georgia, Mississippi, Louisiana, Florida and the Carolinas.
National Weather Service published a map of areas in Gulf Coast states most at risk for flash floods. Triple-I estimated the percentage of properties in these counties that are covered by flood insurance and found that purchase rates are remarkably low in some areas. In Taylor County, GA for example, just 0.09 percent of properties are insured against flooding.
Standard homeowners and renters insurance policies do not cover flooding. The National Flood Insurance Program (NFIP) and a growing number of private companies sell the coverage. However, NFIP policies purchased now would take 30 days to take effect. Private companies have shorter waiting periods, about 14 days.
Hurricane Sally made landfall this morning near Gulf Shores, Alabama, as a Category 2 storm with sustained winds of 105 mph and higher gusts. The storm threatens extremely heavy rainfall and catastrophic floods for miles. Dr. Philip Klotzbach, Triple-I non-resident scholar and Colorado State University atmospheric scientist, gives an update on the storm in the video above.
This year’s National Preparedness Month theme of “Disasters Don’t Wait. Make Your Plan Today” has never been more appropriate. Join the Insurance Institute for Business & Home Safety (IBHS), the Small Business Administration (SBA), and the Insurance Information Institute (Triple-I) during National Preparedness Month for a live webinar on how to prepare for severe weather, COVID-19 interruptions, and other forms of disaster that can have a significant impact on small businesses.
The webinar will showcase small businesses as they share their stories of preparing for and successfully recovering from disaster. In addition to these stories, the webinar will also cover what small business loans are available after a disaster, what tools are available to help businesses prepare, and what you need to know about insurance coverage.
SPEAKERS
Gail Moraton, CBCP – Business Resiliency Manager at IBHS
Alison Bishop, Internal Operations Manager at Spry Health, Inc. (https://spryhealth.com/)
Alejandro Contreras – Director of the Office of Preparedness, Communication and Coordination in the U.S. Small Business Administration’s (SBA) Office of Disaster Assistance (ODA)
Janice Jucker – Co-Owner at Three Brothers Bakery, Houston, TX – 2018 Phoenix Award Winner for Outstanding Small Business Disaster Recovery (https://3brothersbakery.com/)
Loretta Worters – Vice President, Media Relations at Triple-I
From hurricanes to wildfire, tomorrow’s webinar with IBHS, Triple-I and Small Business Administration will cover all disasters and how you can prepare your business.
Organized into two categories—Best Overall Hack for Resilience and Best Application of Insurtech—Hack-for-Resilience III was a virtual event conducted over 36 hours spanning 8:00 pm Friday night through 8:00 am Sunday morning. Students used Slack, Zoom and HopIn digital collaboration platforms, to recruit and select teammates, ideate, seek guidance from mentors, and produce and demonstrate hacks.
This year’s H4R attracted 38 teams from as far away as British Columbia, Brasil and India. Some interesting trends emerged: For 2020, several hacks used gamification—applying the principles and characteristics of video gaming to tasks and problem-solving—as a technique to teach and test catastrophe resilience. This year also saw numerous student innovators drawing inspiration from their own families’ recent natural disaster experiences.
A panel of judges that included Dr. Carolyn Kousky, Wharton Risk Center’s Executive Director and Dr. Michel Leonard, the Triple-I’s Vice President and Senior Economist, selected first- and second-place winning hacks in both categories. They are:
Developed as a way to get households into a “resilience frame of mind,” INSURA uses location and historical loss data, to incentivize catastrophe resilience by making a game of preparedness and mitigation. Users enter information about their homes and known risks, and INSURA suggests mitigation activities and common household maintenance chores. Players are scored by calculated potential insurance premium savings.
Created in response to recent wildfires, CLAIM CART makes it easier for users to file claims for insured losses by guiding them step-by-step through creating an effective household inventory to receive maximum payout for their lost possessions. The app works by querying insurer and public loss and item pricing data to help people prepare for a disaster by more accurately presenting and organizing information about the contents of their home.
Inspired by the development team members experiences during recent California wildfires, AIR.LY is billed as “the one-stop shop [for finding] safe outdoor retreats during wildfires.” AIR.LY helps delivers vital, in-real-time help to an often-overlooked group: persons afflicted with respiratory issues or other health complications.
Designed and built by a team of high-schoolers, S.O.S. is story-mode game that allows players to choose disaster scenarios that present multiple options to instruct on fire and flood safety, as well as effective preparedness and evacuation practices.
First place-winning team members will each receive a $200 Amazon gift card for their winning hacks, while the runners-up each will receive a $100 Amazon gift card. New for 2020 is an additional reward for first place winners, entry into a Resilience Accelerator Lightning Rounds ideas showcase, where teams will demo their winning hacks to a panel of insurance innovation leaders and investors.
The Wharton Risk Center and the Triple-I wish to again extend our thanks to all who contributed to making Hack-for-Resilience III and PennAppsXXI a rousing success!
By James Ballot, Senior Advisor, Strategic Communications, Triple-I
Hurricane Sally looks to be a very significant hurricane for the northern Gulf Coast according to Triple-I non-resident scholar and Colorado State University atmospheric scientist Dr. Philip Klotzbach.
While the Category 1 storm doesn’t look to intensify much today given relatively strong wind shear and cooler sea surface temperatures (since the storm is moving very slowly and consequently churning up colder water beneath the surface), we’re likely to have a long duration storm event unfolding over the next several days.
Wind impacts will be moderate, but the storm will be moving very slowly, so a prolonged period of high winds can be expected. The very slow-moving hurricane is going produce tremendous amounts of rain along the northern Gulf Coast. Large regions will likely experience 10+” of rainfall, with isolated storm totals approaching 30″, said Dr. Klotzbach.
Emergency declarations for parts of Florida, Louisiana, Mississippi and Alabama have been issued and residents are urged to listen to local officials.
U.S. Gulf Coast residents from Louisiana to Florida should prepare for Tropical Storm Sally, which is forecast to strengthen into a hurricane before making landfall on Tuesday.
There is uncertainty over the specific timing and location of Sally’s landfall, as well as its ultimate intensity level. Severe weather conditions will last, however, for several days in multiple states.
The NHC warns Sally will generate destructive hurricane-force winds; torrential rain; life-threatening storm surge; flash flooding; isolated tornadoes; and widespread power outages.
Sally will be the eighth named storm to make landfall in the continental U.S. this hurricane season. Previous 2020 landfalls include Hurricanes Hanna, Isaias and Laura as well as Tropical Storms Bertha, Cristobal, Fay and Marco.
Louisiana, Mississippi, Alabama and Florida residents in the path of Sally should take the following precautions:
Review your evacuation plan and, if you have a pet, your pet’s evacuation plan.
Make sure you have a minimum seven-day supply of non-perishable food and drinking water (one gallon per person, per day) for all family members and pets, as well as a one-week supply of medications for everyone in your household.
Write down the name and phone number of your insurer and insurance professional and keep this information either in your wallet or purse.
Purchase emergency supplies, such as batteries and flashlights.
Prepare your yard by removing all outdoor furniture, lawn items, planters and other materials that could be picked up by high winds.
Fill your car’s gasoline tank because long gas lines and fuel shortages often follow in areas impacted by a tropical cyclone.
Held virtually, the third annual “Hack-for-Resilience” begins on Friday, Sept. 11 and concludes on Sunday, Sept. 13 as part of PennAppsXXI, the nation’s oldest student-run hackathon. The word “hack,” in the context of a hackathon, describes how multiple technologies can be used in new and innovative ways.
“This event allows the Triple-I and its Resilience Accelerator partners to bring together insurers and student innovators who have the same goal—to create new products and services that will reduce the risks people face from natural disasters,” said Sean Kevelighan, CEO, Triple-I. The Triple-I’s Resilience Accelerator was launched in 2019 to reduce the impact of extreme weather events on households and communities through insurance.
The 2020 edition of this competition will give entrants from midnight on Saturday, Sept. 12 through 9 a.m. on Sunday, Sept. 13 to show their skills. During this time, teams of up to four students will conceive, test, and deliver working apps while others develop hardware solutions, Internet of Things (IoT) protocols, and data tools that can save lives and reduce property damage in the wake of a natural disaster.
A team of judges from Wharton Risk Center and Triple-I will award first- and second-place cash prizes in two categories: “Best Overall Hack” and “The Most Outstanding Application of Insurtech,” which is defined broadly as either a product or service that improves the insurance customer experience. The winning teams will be announced on Sunday evening, Sept. 13.
The first-place prizes in 2019 were awarded to the creators of Phoenix, an autonomous drone with the capacity to track and extinguish fires (Best Overall Hack) and WildFire Protect, a parametric insurance product which would pay a policyholder immediately after they incurred a wildfire-related property loss (The Most Outstanding Application of Insurtech).
You can follow this year’s competition on social media via the hashtag #H4R2020
Business interruption losses from a global pandemic are uninsurable due to their sheer scope. Business interruption losses (in the U.S. alone) from the coronavirus are estimated at $220-$383 billion per month — an amount the industry could not and should not be expected to cover.
Americans across the country appear to recognize that only the federal government has the capacity to provide the relief business owners need. A recent poll initiated by Future of American Insurance and Reinsurance (FAIR) found that the majority of Americans believe the government should bear the financial responsibility for helping businesses stay afloat during the coronavirus pandemic.
The poll, conducted by CivicScience, found that only 16 percent of respondents said they believe insurance companies should bear the responsibility for helping businesses during the pandemic, and only 8 percent believe lawsuits against insurers are the best path for businesses to secure financial relief.
Business interruption insurance contracts were not priced to cover global pandemic risks, so forcing insurers to pay for claims their policies weren’t priced to cover would harm all policyholders, said FAIR in their commentary on the poll results.
A government-backed policy solution can provide immediate relief to struggling business owners and protect insurers’ ability to keep promises to policyholders for covered catastrophe losses, like damage from wildfires and hurricanes.
Trial attorneys’ attempts to retroactively force uninsurable pandemic coverage in business interruption insurance contracts are detrimental to policyholders, communities, insurers, and economic growth. A government-backed solution for struggling businesses in need of relief has never been more urgently needed, FAIR concluded.
ABOUT FAIR FAIR is an initiative of the Insurance Information Institute and its member companies whose mission is to ensure fairness for all customers and safeguard the industry’s longstanding role as a pillar of economic growth and stability.
U.S. insurers and their foundations by June 2020 had donated about $280 million in response to COVID-19, the Insurance Information Institute (Triple-I) estimates based on information collected by the Insurance Industry Charitable Foundation (IICF)
International insurers and their foundations donated an additional $150 million.
U.S. auto insurers have returned more than $14 billion to their customers nationwide in response to reduced driving during the pandemic, according to a Triple-I estimate.
Individual companies are working to alleviate the crisis by donating to global relief efforts and easing the financial burden on their customers. We reported on some of these activities in April.
Below is list of what just a sample of Triple-I’s member companies have contributed to ease a wide array of community needs.
The Allstate Foundation contributed $5 million to help domestic violence victims, youth in need and first responders.
American Family Insurance, along with the American Family Insurance Dreams Foundation, announced more than $4 million in support for COVID-19 pandemic relief and other non-profit efforts. Additional support from the Steve Stricker American Family Insurance Foundation is expected to push the total support to more than $6.8 million.
Chubb is focusing its global pandemic relief efforts on organizations that provide emergency medical supplies to healthcare facilities, to food banks helping the vulnerable and hungry, and for scientific research to treat and prevent this disease. The company announced $12.5 million in grants toward these efforts.
Liberty Mutual’s philanthropy program has committed $15 million in crisis grants to community partners helping respond to the coronavirus; given donations to over 800 nonprofits they partner with in their employee volunteering program; supported employees’ donations with company gifts; and created an employee phone outreach program to call those in the community who are socially isolated.
MetLife Foundation announced that it is committing $25 million to the global response to COVID-19 in support of communities impacted by the pandemic. The grant funding from MetLife Foundation will span all regions where MetLife operates and address both short- and longer-term relief efforts.
MAPFRE is allocating 54 million euros to support customers and suppliers. This is in addition to 5 million euros recently donated to accelerate COVID-19 research in Spain.
Nationwide Foundation is making $5 million in contributions to local and national charities to support medical and economic response efforts.
In addition to delivering $4.2 billion in savings to its customers, State Farm is donating millions to pandemic relief efforts.
The Hanover is donating $500,000 to local community nonprofits to provide pandemic-related assistance, including, $350,000 to local United Way, Boys & Girls Club and Chamber of Commerce organizations in Massachusetts and Michigan where the company employs large concentrations of employees
The Hartford committed $1 million in donations focused on responding to urgent human needs, the health care crisis and the city of Hartford through organizations that have been critical in addressing the humanitarian issues caused by this crisis.
Travelers pledged $5 million to assist families and communities across North America, the United Kingdom and the Republic of Ireland. The money goes to charities that provide essential services, pays wages and health benefits for eligible third-party contract employees, and contributes toward an employee donation matching program.
USAA has committed an additional $30 million to benefit 24 organizations assisting military families during these challenging economic times. The donation is part of USAA’s long-standing mission to support military and veterans’ families and recognizes the specific impact the health crisis has had on the military community.
Westfield Insurance will contribute nearly a million dollars toward nonprofit partners whose work became infinitely more challenging with this pandemic. The company is working with the Akron Canton Foodbank, Cleveland Foodbank, United Way of Cleveland, Feeding Medina County and Feeding America. Additionally, the Westfield Insurance Foundation is matching dollar for dollar up to $50 for every employee who gives to a local foodbank or United Way.
Tell us how your company is contributing to the pandemic relief efforts in the comments below.
Triple-I’s “Insurance Careers Corner” series was created to highlight trailblazers in the insurance industry and to spread awareness on the career opportunities within the industry.
This month we interviewed, Tasha Fuller, CEO & Co-Founder, FloodFrame USA, a Houston-based company that provides homes and businesses with a waterproof cloth barrier against damage from flooding. Tasha shared her insights as a woman entrepreneur in STEM and how past flooding experiences and a background in civil engineering inspired her business.
Tasha Fuller, CEO & Co-Founder, FloodFrame USA
You started your career as a civil engineer. What led you to eventually build your own business, FloodFrame USA?
As an engineer, I wanted to do more for the community. I was designing big projects around Houston, oftentimes office buildings or huge industrial buildings, but I got into engineering to help the world in some way. It was always in the back of my mind to figure out how to best use my talents for this.
My primary focus was hydraulics and hydrology – how water works and how storms work. Then flooding happened in Houston. My family and I went to Denmark about six months after [Hurricane] Harvey to visit family, and we were introduced to FloodFrame on the news. Immediately, I knew this was something that needed to be in Houston. I contacted the Danish engineers, who developed the technology, to discuss how to bring it to the U.S. This led to six months of conversations with the engineers, myself, and my Dad, who is also my business partner. Initially, we were pursuing this [opportunity] on the side, and it was a huge leap of faith when we realized this company needed a full-time champion in order to work in the U.S.
What was the transition like from engineer to entrepreneur?
It was a huge risk, and it was scary. I’d wake up in the morning and wonder if I made the right decision. I left a corporate environment where everything was lined up for me, and I had colleagues to ask questions. The pattern of the day was figured out. As an entrepreneur, each day you ask yourself what’s the best thing for your company. Not having colleagues, it’s all on you, and it can feel like you never turn off. I’ve been doing this for almost two years now, and I’ve most recently learned to find the balance.
What advice would you give to aspiring women entrepreneurs looking to build a STEM business?
On the days where you feel like giving up, just don’t. You are going to have days when you doubt if you have the potential. I read a quote the other day that resonated with me, ‘when you’re tired, learn to rest not quit.’ I’ve been using that for myself because I have tough days too. I recommend going for a walk or doing something that you enjoy. Go back to the challenge after that rest. Things will look a lot brighter than when you were in the moment.
In my previous job, I was the only woman and the only person under 40 in the room. I had to learn to stand my ground and feel comfortable in that situation. I would say to view that situation as an advantage to stand out and have your message heard versus blending into the room.
As a resident of Houston, you’ve experienced several severe storms including Harvey. How did you these experiences influence the business?
We wouldn’t have started this company if we didn’t see the impact of water on our community and how destructive flooding can be. During Hurricane Harvey, I remember watching the water inch towards my parents’ house. It was such a hopeless feeling, because we couldn’t stop this force of nature at the time. I remember thinking that there must be some solution out there for people who want to protect their homes. That’s really where the seed was planted and why meeting the FloodFrame engineers clicked during our trip to Denmark. My family would have been in a different position if we had the protection on our house.
2020 is expected to be one of the worst hurricane seasons on record and the pandemic will bring about new challenges in disaster prep. How have these challenges impacted your business?
We have installations already in the ground in the Greater Houston area. Our primary goal is to educate as many people as possible [in the area] about risk mitigation and property protection. The biggest hurdles have been reaching the people that really need it and educating the community overall. Pre-disaster mitigation is important. Floods will continue to happen, but protection can help people spend a fraction of cost to rebuild a flooded house. I’ve been leveraging digital platforms and accelerator programs like the Resilience Accelerator to find the right partners and get the word out on risk mitigation. We’re in this unusual time, but people realize that their homes are important and need the tools to protect themselves. Even though we are in a pandemic, that doesn’t mean the flooding will stop.
