Posted by Benji Riggins on September 27, 2010 under Interesting Info | 
When hurricanes and tropical storms hit the North Carolina coast, it can give pause to residents and also to those considering moving close to the ocean.
But does it do the same thing to businesses?
Coastal geography “is always a consideration for any site,” said Mike Mullis, who owns the J.M. Mullis site selection business based in Memphis.
Verizon Wireless was no exception when it eyed bringing a call center to Wilmington.
“This was a point we took into consideration when making our selection of the Wilmington area, which led us to ensure we have back-ups and redundancies,” said Tony Garcia, associate director of business service center operations in Wilmington. “We do this for all our buildings whether in hurricane, earthquake, snowstorm and other areas.
“We reviewed historical data on occurrences, impact, cost, etc., that ultimately brought balance to the other factors for choosing this area,” he said.
Being on a storm-vulnerable coast is almost never the lone deciding factor when businesses consider locating an operation, Mullis said.
“At the same time, there are many reasons projects are on the coast, to be next to port access,” he said.
Wilmington has its share of business heavyweights _ GE Hitachi Nuclear Energy, PPD Inc. and Verizon, for example _ that have not only located here but have expanded and plan further expansion.
Such firms have elaborate emergency plans to keep their businesses and facilities operating through a hurricane. GE has operated here for more than 40 years and shows that complicated business operations can rebound from a hurricane.
GEH “has a preparation procedure that evaluates storm conditions with respect to strength and direction, and we then implement accordingly,” said Lori Butler, general manager of environment, health and safety at GEH. “This procedure includes preparing personnel and the site based on storm conditions,” she said
When locating on the coast, Mullis said, “You simply design your facilities (for storm resistance) and put in precautionary measures.”
“We have projects going on in Miami,” he continued. “We take double protections one facility within another.”
That kind of built-in protection is needed, for instance, for a food service center, Mullis said. “You hope that the food will be clean and fresh.”
Extra protections also are needed for a customer support center, he said, citing Verizon’s call center at Independence and Shipyard boulevards.
Verizon’s Garcia said its building on Shipyard Boulevard is heavily fortified.
In addition, he said, “We have a stand-alone generator capable of supplying full power to our building. We have routing capabilities and redundancy built in, and our customers would be serviced by our network of call centers located throughout the country.”
Sometimes it’s not the reality of tropical storms but the perception of them that influences a company’s decision to locate in Southeastern North Carolina or other coastal areas.
“With companies moving here, it’s the fear and perception that it could completely cripple your business,” said Jonathan Rowe, director of the Entrepreneurship Center at the University of North Carolina Wilmington. “That perception is one of the top issues.
“The threat to data is a concern on the coast,” he said, “but many companies store their data at servers away from the coast.
“Nowadays, with the fact that you can keep a lot of data off site, hurricanes become less relevant, more of a perception thing than reality-based,” Rowe said.
Even though one negative of residing along the coast is the rising cost of homeowners insurance, the insurance cost to businesses “doesn’t come up as much as you’d think,” Rowe said.
Whether a company actually has inventory on site is a factor in coastal locations, Rowe said.
Companies with inventory on site feel the most insurance pain. If inventory is destroyed, especially for small businesses like shops, “it can ruin the business.
“In most cases the insurance is going to be higher. For those businesses, that can be a big consideration in coming here.”
By Wayne Faulkner
Read more: http://www.insurancejournal.com/news/southeast/2010/09/09/113122.htm#ixzz0z8g2XovR
Posted by Benji Riggins on September 24, 2010 under Flood |
The House of Representatives joined the Senate yesterday in approving a one-year reauthorization of the nation’s flood insurance program.
The measure, S. 3814, will extend the National Flood Insurance Program (NFIP) until Sept. 30, 2011. The measure now goes to President Obama for his signature.
If Congress had not acted, the program would have expired next week on Sept. 30.
The vote leaves for the future any reforms of the program, which is $18 billion in debt.
But the insurance industry welcomed the extension after several years of lapses and short term rescues. This year alone, Congress allowed the program to lapse four times. During these lapses, new flood insurance policies could not be written, and thousands of real estate closings in flood-prone regions were delayed.
“While we are pleased that Congress passed the one-year extension, there is still work to be done in the 112th Congress,” said David Sampson, president and CEO of the Property Casualty Insurers of America. “With over $18 billion in debt, the NFIP is a program that needs meaningful reform and a long-term reauthorization.”
The reauthorization will ensure that the NFIP will be there for the final two months of this year’s hurricane season and much of next year’s as well, noted Jimi Grande, senior vice president of federal and political affairs for NAMIC.
“It will not, however, fix the problems with the NFIP itself. The program is financially unsustainable and failing to address that only makes the problem worse for homeowners, insurers and the American taxpayers,” Grande said.
Blain Rethmeier, a spokesman for the American Insurance Association, expressed a similar view.
“A one year extension gives Congress the time necessary to debate the more fundamental reforms the program needs. But between now and then, homeowners living in flood-prone areas will have the stability, protection, and peace of mind to go on with their lives,” he said.
Read more: http://www.insurancejournal.com/news/national/2010/09/24/113507.htm#ixzz10SgFCVvm
Posted by Benji Riggins on September 23, 2010 under Insurance News |
In a one-year period, the cost of medical care and productivity losses associated with injuries from motor vehicle crashes exceeded $99 billion – with the cost of direct medical care accounting for $17 billion.
A new study by the Centers for Disease Control and Prevention says the total annual cost amounts to nearly $500 for each licensed driver in the U.S.
The study in the journal Traffic Injury Prevention found that the one-year costs of fatal and non-fatal crash-related injuries totaled $70 billion (71 percent of total costs) for people riding in motor vehicles, such as cars and light trucks, $12 billion for motorcyclists, $10 billion for pedestrians, and $5 billion for bicyclists.
CDC researchers said they used 2005 data because, at the study time, it provided the most current source of national fatal and non-fatal injury and cost data from multiple sources.
The data is for injuries only and does not include costs of vehicle or property damage.
“Every 10 seconds, someone in the United States is treated in an emergency department for crash-related injuries, and nearly 40,000 people die from these injuries each year. This study highlights the magnitude of the problem of crash-related injuries from a cost perspective, and the numbers are staggering,” said Dr. Grant Baldwin, director of CDC’s Division of Unintentional Injury Prevention, National Center for Injury Prevention and Control.
The study also found:
Costs related to fatal motor vehicle-related injuries totaled $58 billion. The cost of non-fatal injuries resulting in hospitalization amounted to $28 billion, and the cost of injuries to people treated in emergency departments and released was $14 billion.
More men were killed (70 percent) and injured (52 percent) in motor vehicle crashes than women. Injuries and deaths among men represented 74 percent ($74 billion) of all costs.
Teens and young adults made up 28 percent of all fatal and nonfatal motor vehicle injuries and 31 percent of the costs ($31 billion). These young people represented only 14 percent of the U.S. population.
Motorcyclists made up 6 percent of all fatalities and injuries but 12 percent of the costs, likely due to the severity of their injuries. Pedestrians, who have no protection when they are hit by vehicles and are also often severely injured, made up 5 percent of all injuries but 10 percent of total costs.
CDC’s Injury Center supports strategies for prevention such as graduated driver licenses, child safety seats, primary seat belt laws, enhanced seat belt enforcement, motorcycle and bicycle helmet laws and sobriety checkpoints.
The Insurance Institute for Highway Safety (IIHS) has details on state-specific safe driving policies and a state-by-state comparison.
Read more: http://www.insurancejournal.com/news/national/2010/08/27/112773.htm#ixzz0xpiEuePF
Posted by Benji Riggins on September 20, 2010 under Flood |
The National Flood Insurance Program (NFIP) is set to expire on Sept. 30, just as the 2010 Atlantic Hurricane Season reaches its height.
Insurers are urging Congress to take immediate action to reauthorize the federal insurance program.
“Congress returned from recess … and there is still not a clear path for the NFIP reauthorization,” said Ben McKay, senior vice president of federal government relations for the Property Casualty Insurers Association of America (PCI). “We are very concerned that this will lead to another NFIP lapse.”
Since 2008, NFIP has been operating under a series of short-term extensions. This year alone, Congress has already allowed the program to lapse four times. During these lapses, new flood insurance policies could not be written, leaving homeowners vulnerable and delaying thousands of real estate transactions per day in flood-prone regions.
On July 2, President Obama signed into law the latest short-term NFIP extension following a four-week program hiatus. The NFIP is now set to expire again on Sept. 30.
In addition to urging a long-term extension of NFIP, the industry and others want Congress to reform the program to address its more than $18 billion debt. The interest alone on this debt is almost $1 billion a year, according to PCI.
Read more: http://www.insurancejournal.com/news/national/2010/09/20/113357.htm#ixzz106W0iZ23
Posted by Benji Riggins on September 17, 2010 under Claims |
While fire may be a common worry among homeowners, claims data from Travelers suggests their homes could be as much as 10 times more likely to be damaged by water than by fire.
Fortunately, much of this water-related damage can be prevented, and taking a few simple home maintenance steps can help increase the chances of keeping a property safe.
Travelers recently analyzed its homeowners insurance claims in North Carolina, excluding claims related to catastrophes, and found that damage caused by water accounted for 28 percent of its property claims in the state, compared to three percent for fire. Furthermore, of those water damage claims, weather accounted for only five percent, meaning that proper maintenance within the home may help homeowners avoid some of these problems.
“When considering annual household cleaning projects, it’s a great time to inspect and perform maintenance on household systems and appliances,” said Ron Stephens, Regional Vice President for Travelers. “Checking washing machine hoses, ice maker connections and the plumbing around water heaters are a few simple actions you can take to prevent both damages and a lot of headaches.”
After examining the most common causes of water damage for Travelers customers in North Carolina, claim and risk management professionals from Travelers have developed a number of easy steps homeowners can take to help avoid many of these non-weather-related water problems. The following list provides preventive measures to help avoid the top four common causes of non-weather related water damage:
Leaks from washing machine hoses: Washing machine hoses should be inspected annually and replaced every five years – or immediately, if there are any signs of cracking or bulging.
Leaky plumbing around water heaters: Plumbing should be inspected annually and repaired if there are any signs of leaks or corrosion. When possible, water heaters should be installed in an area with floor drains to minimize damage if leaks should occur.
Leaks from refrigerator ice machines: Ice maker connections, usually located behind the refrigerator, should be inspected annually and hoses replaced if they appear cracked or corroded.
Clogged drain lines on air conditioning units: Air conditioning drain lines should be checked yearly.
Read more: http://www.insurancejournal.com/news/national/2010/09/17/113337.htm#ixzz0zohyhr6t
Posted by Benji Riggins on September 16, 2010 under Safety |
Eight percent of all drivers, as many as 17 million people, have driven drunk at least once during the past year.
The National Highway Traffic Safety Administration (NHTSA) released that data as the U.S. Department of Transportation kicked off the annual Drunk Driving. Over the Limit. Under Arrest. campaign aimed at getting drunk drivers off the road.
NHTSA’s research revealed that about one in five Americans have driven within two hours of drinking alcohol in the past year. Four out of five Americans identified drunk driving as a “major threat” to their own and their family’s safety.
The survey noted that those who reported that they drink and drive consumed alcohol more regularly than individuals who drink but choose not to drive afterwards. More than one in four drinking drivers, 28 percent, consumed alcoholic beverages three or more days a week, compared to 10 percent of drivers who drink but do not drive afterwards.
The law enforcement crackdown will run through Labor Day and involve thousands of police agencies from across the nation. Enforcement efforts are supported by $13 million in television and radio advertising from NHTSA.
“Drunk driving is deadly, it’s against the law, and unfortunately, it’s still a problem,” said Transportation Secretary Ray LaHood. “With the help of law enforcement around the country, we are going to continue doing all that we can to stop drunk driving and the needless tragedies that result from this reckless behavior.”
“Our message is loud and clear. If you drive drunk you will be arrested and prosecuted. There will be no exceptions and no excuses. And if you’re below the age of 21, there is zero tolerance for any alcohol in your system whatsoever. That’s why we’re out there with law enforcement, tackling this major safety issue head on,” NHTSA Administrator David Strickland said.
According to Strickland, the study revealed a particularly concerning rate of drinking and driving behavior among young drivers, especially young male drivers. Few 16 to 20 year-old respondents admitted to driving after drinking in the survey, but those that did admit to drinking said they drank almost six alcohol beverages at one sitting. While this admission in the survey was inclusive of all drinking occasions, and not just drinking and driving, it does suggest that when young people decide to combine the two, they are drinking more heavily.
Personal drinking behavior can also lead to an increased likelihood of riding with impaired, unsafe drivers. According to the survey, 8 percent of the population 16 and older rode in the past year with a driver they thought may have consumed too much alcohol to drive safely.
The latest survey was administered in 2008 by telephone to 6,999 respondents 16 years and older, and over-sampled teenagers and young adults 16-24 years of age. The survey is conducted on a periodic basis to monitor the public’s attitudes, knowledge, and self-reported behavior regarding drinking and driving.
Read more: http://www.insurancejournal.com/news/national/2010/08/26/112764.htm#ixzz0xjp19bgS
Posted by Benji Riggins on September 14, 2010 under Safety |
Car booster seats have made strides in ensuring a proper fit for children in the back seat, according to a review by the insurance industry.
The Insurance Institute for Highway Safety gave its top marks to 21 of 72 booster seats it evaluated for properly restraining children, or about 30 percent, according to results released Wednesday. Last year, the Institute only handed out its “best bet” citation to nine of the 60 seats it reviewed, or 15 percent.
Booster seats are used by children between the ages of 4 and 8 and elevate kids so seat belts fit them better. Seat belts are meant to be routed across a child’s upper thigh and cross over the middle of the shoulder to provide protection in a crash.
A 2009 study by the Children’s Hospital of Philadelphia found that children ages 4 to 8 who ride in booster seats in the back seat are 45 percent less likely to sustain injuries in crashes than children wearing only seat belts. The government recommends booster seats for children over 40 pounds until they are 8 years old or 4 feet, 9 inches tall.
The Virginia-based Institute focuses on how well the seat belt fits on an average booster-age kid in most vehicles. It doesn’t conduct vehicle crash tests to evaluate booster seats because the seats don’t restrain children in a crash, seat belts do.
Harmony Juvenile Products had five “best bet” booster seats, more than any other manufacturer. Dorel Juvenile Group had five seats that rated either “best bet” or “good bet,” the second-highest designation.
Booster seats built by Britax, Clek, Combi, Dorel, Evenflo and Recaro had “best bet” booster seats for a second straight year. Seats by Chicco, Cybex, Graco, Harmony and The First Years joined the “best bet” ranks in 2010.
In addition to the 21 seats that received the top rating, seven seats received the Institute’s second-highest rating of “good bet” and 36 were in the middle category because they didn’t consistently fit belts well on most children in most vehicles.
The Institute said consumers shouldn’t assume that boosters in the “in-between” group will fit children in every vehicle. Parents should try them out to see if the lap and shoulder belts fit their kids properly and keep looking until they find a good match.
The Institute did not recommend: Eddie Bauer Deluxe, Eddie Bauer Deluxe 3-in-1, Evenflo Express, Evenflo Generations 65, Evenflo Sightseer, Harmony Baby Armor, Safety 1st All-in-One, and Safety 1st Alpha Omega Elite.
Dorel Juvenile Group, which manufacturers the Eddie Bauer and Safety 1st seats, said in a statement that it evaluates and continues to evolve “current products to enhance their performance with new technologies and designs.”
Michael Noah, a senior vice president with Harmony Juvenile, said the company was pleased with the overall results and said the Baby Armor seats had performed well in testing conducted by third-party laboratories for the company. Evenflo did not immediately respond to the Institute tests.
Anne McCartt, the Institute’s vice president for research, said parents should be wary of lap belts that ride up on the tummy and shoulder belts that either fall off the shoulder or rub against a child’s neck.
By Ken Thomas
September 9, 2010
Read more: http://www.insurancejournal.com/news/national/2010/09/09/113096.htm#ixzz0z8dv56Uf
Posted by Benji Riggins on September 8, 2010 under Safety |
Victims of identity theft are most often targeted via burglary, stolen wallets and pilfered identifications, according to a new survey on identity fraud.
In some 76 percent of all cases of identity fraud reported by Travelers customers, burglary, stolen wallets and stolen identifications top the list of the most common known causes, according to a study of Travelers’ 2009 claims data.
The findings mirror last year’s report on Travelers’ 2008 claims data which indicated that the majority of identity fraud cases reported by customers were from burglaries and stolen wallets. The data reveals how thieves still prefer more low-tech means of identity fraud over online-related thefts and data breaches that typically receive significant media attention.
“This study suggests once again that more traditional means of identity fraud are prevalent today and continue to pose significant risks to consumers,” said Joe Reynolds, Identity Fraud Product Manager for Travelers. “Knowing this, it is critical that consumers take steps to protect themselves and their property.”
Travelers identified the following as the top known causes of identity fraud for its customers:
76 percent – burglary and theft of wallet/purse/personal identification/computer
9 percent – online or data breach
9 percent – forgery
6 percent – change of address/postal fraud
The study also found that 74 percent of the time criminals use the stolen personal information to open new credit card accounts or use the existing credit cards to make charges. Of that 74 percent, 26 percent of identity thieves access existing credit/debit cards, 21 percent open new cards and make charges in the victim’s name, and 18 percent access and withdraw funds from existing checking, savings and online retail accounts.
A study by Javelin Strategy & Research showed that the number of identity fraud victims jumped by 12 percent to 11.1 million adults in 2009, the biggest increase since the survey began in 2003.
“Identity fraud is a crime that can happen to anyone, anywhere, and so it’s particularly important for people to exercise diligence in protecting their personal information,” noted Reynolds.
Read more: http://www.insurancejournal.com/news/national/2010/08/24/112692.htm#ixzz0xdXYSKke
Posted by Benji Riggins on September 3, 2010 under Claims |
Property/casualty insurance companies are reporting that the number of claims requiring more scrutiny than normal rose again in the first half of this year compared to 2009.
The National Insurance Crime Bureau’s first half 2010 questionable claims (QC) report examines six referral reason categories of claims— property, casualty, commercial, workers’ compensation, vehicle and miscellaneous.
Overall there was a 14 percent increase in QCs in four of the six categories in 2010 when compared to the first half of 2009. These are claims that NICB member insurance companies refer to NICB for closer review and investigation based on one or more indicators of possible fraud. A single claim may contain up to seven referral reasons.
Of note were the 107 percent increase in questionable hail damage claims and 527 percent increase in questionable auto glass claims so far this year when compared to the first half of 2009.
“Hail loss claims and QCs are generally concentrated in the central section of the U.S. However, seven of the top 10 states with the highest hail loss QC-to-claim ratio are not in the central section. This suggests that fraudulent hail losses can occur in any part of the country,” the report notes.
“While there have been modest declines within a few categories of referrals, the 14 percent increase in the overall number of questionable claims for 2010 raises concerns,” said Joe Wehrle, NICB’s president and chief executive officer.
Wehrle said NICB, its member insurers and law enforcement have pursued suspected unscrupulous roofing companies that take advantage of storms to fake or deliberately cause damage to roofs in an effort to get insurers to pay for a replacement roof that wasn’t damaged by a storm. They have also been putting pressure on staged accident rings in various regions including Tampa, where this has become a major problem.
“We’re seeing concern from our members about criminal rings that are deliberately damaging vehicle windshields in order to file an insurance claim, and in some cases are not doing satisfactory repairs or replacements,” Wehrle said.
NICB is supported by nearly 1,100 property and casualty insurance companies and self-insured organizations.
Source: National Insurance Crime Bureau
Read more: http://www.insurancejournal.com/news/national/2010/08/02/112084.htm#ixzz0vTYP12p7
Posted by Benji Riggins on September 1, 2010 under Interesting Info |
It’s tough being a thief. So much booty to carry around, so many cops to evade. Needless to say, trying to pick the right vehicle for the job while keeping in mind it’s resale value on the black market is almost as challenging as stealing one.
The Highway Loss Data Institute of the Insurance Institute for Highway Safety has released it’s annual list of cars and trucks with the highest claim rates per 1,000 units for theft, covering vehicles that are 1 to 3 years old. If you own one of these, you may want to invest in a good alarm, or let your dog sleep in it.
#5 Chevrolet Avalanche
Chevy’s real-life transformer – the cabin can be opened up to extend the pickup bed inside – may not be the company’s best seller, with only 16,000 sold in 2009, but it’s popular among the sticky fingers crowd with 7.4 per thousand getting ripped-off.
Source: Chevrolet
#4 Dodge Charger
If you were a criminal is there anything else you would drive? The Charger was designed to look menacing, and claims are made on 7.4 per 1,000 of them, while models with the high-performance HEMI V8 engine rank 7th on this list with 7.1 per 1,000. No surprise, it makes a great getaway car. Unfortunately, law enforcement has figured this out, which is why Dodge also makes a police version.
Source: Dodge
#3 Chevrolet Silverado
Just take a look around, the Silverado is one of the most common vehicles on the road. Theft claims are made on 8 out of every 1,000 of the crew cab models. That’s a lot of crime.
Source: Chevrolet
#2 Ford F250 Crew Cab 4X4
You’ve almost got to give someone credit for trying to steal a monster like the heavy duty Ford F250, unfortunately, a lot of people are successful doing it.
Source: Ford
#1 Cadillac Escalade
The Cadillac Escalade almost single-handedly defined the world bling, as applied to automobiles, so it’s no surprise its at the top of this list. Claims are made on no less than 10 of these for every 1,000 on the road, with an average payout of $11,934. And that’s with standard engine immobilizers. According to the HDLI’s Senior Vice President, Kim Hazelbaker,”thieves can still put them on flatbeds and haul them away.”
Makes you wonder how many of those are stolen each year.
Source: Cadillac
