Posted on December 29th, 2011 by Lynn Sheils
-Authored by Steve McElhiney, President of EWI
EWI ended 2010 by posting a blog of its outlook for the reinsurance market in 2011. EWI was accurate in most of its predictions for the 2011 year. As for our 2012 forecast? In our view, the insurance risk markets and the capital markets (and macro economics) are highly inter-connected; thus, our forecasts are provided across a variety of fronts. We believe you simply can’t arrive at credible views of the reinsurance markets without first looking at these other factors. Please click “Outlook 2012″ for our 2012 forecast. Best wishes for the New Year!
Outlook 2012
Posted on December 29th, 2011 by Lynn Sheils
EWI participated in the holiday charity event of the Fort Worth Chapter of CPCU by collecting Care Packs for Kids for the Lena Pope home. Most children coming into foster care have nothing with them but the clothes on their back when they arrive at the home. Care Packs for Kids is a program that puts together back packs and duffle bags filled with shampoo, body wash, toothpaste, toothbrushes, deodorant, personal care items, journal, and hat and gloves. Care Packs for Kids benefits children from birth to age 18, as well as children leaving foster care and going on to college. Photo features: (L-R) Amy Trione, CPCU North Texas Governor; Debra Richardson, CPCU Fort Worth Chapter President; Steve McElhiney, Presdient of EWI and CPCU National President; and Marilyn Sammons, Lena Pope Foundation
Posted on December 2nd, 2011 by Lynn Sheils
Steve McElhiney took office as the National President & Chairman of the CPCU Society for 2011-2012. Learn more about Steve in a “Meet the President” article in CPCU News. CONGRATULATIONS STEVE!
Steve McElhiney, President of EWI, Takes Office
Posted on September 23rd, 2011 by Lynn Sheils
On August 29, 2011, Steve McElhiney, President of EWI and President-Elect of the CPCU Society, along with Toni Green, Vice President of Claims at EWI, visited the Texas Southern University Campus in Houston, Texas to offer advice and insight on insurance career opportunities to a Risk Management/Finance class on Health, Disability, and Long-Term Care Insurance. Students in the class are preparing to take the 556 CPCU exam as part of the class’s curriculum. This offers students a unique opportunity to get a jump on earning a CPCU designation.
Posted on July 19th, 2011 by Lynn Sheils
- by Michael McKee
2011 includes the 10 year anniversary of the tragic 9/11 attacks on the World Trade Center. This milestone should be viewed by Risk Managers as an opportunity to remind your business units to be vigilant against terrorism threats and discuss ways to assist authorities in the recognition of threats to facilities. Terrorism may not be actively portrayed in the news media, but the threat is always among us (thus the reason this type of threat is called terrorism). In the US alone since 9/11, there have been multiple terrorism activities either thwarted by the authorities or which did occur and are publically known, including:
2003: American charged with plotting to use blowtorches to collapse the Brooklyn Bridge
2004: Plan to plant a bomb at NYC Penn Station during the Republican National Convention
2005: Los Angeles terrorists plot to attack National Guard, LAX, two synagogues and the Israeli consulate
2005: Plot to blow up natural gas refinery in Wyoming, the Transcontinental Pipeline, and a refinery in New Jersey
2006: Liquid Explosives Plot: Thwarted plot to explode 10 airliners over the US
2007: Khalid Sheikh Mohammed: confessed in court in March 2007 to planning to destroy skyscrapers in New York, Los Angeles and Chicago
2007: JFK Plot: Four men accused of plotting to blow up fuel arteries running through residential neighborhoods at JFK Airport in New York
2009: Radicalized Muslim US Army officer commits the worst act of terror on American soil since 9/11 at Ft Hood, TX
2009: Nigerian man who claimed ties to al-Qaida attempts to destroy a Detroit-bound airliner
2010: Plot to detonate explosive device – Times Square, NY
2011: Khalid Aldawsari – plotted to blow up hydroelectric dams and nuclear power plants.
2011: Killing of Osama Bin Laden in Pakistan
Terrorist groups cannot be viewed strictly as political extremists. Other types of groups use terror as a means to compel target businesses to change their operations or philosophies. Terrorist groups are generally subtyped as politically, economically or socially motivated. Politically motivated terrorists will try to cause as much direct and collateral damage as possible on a target to sensationalize their aims. This includes injury to physical assets, to people and to the environment.
Economic terrorism is waged by groups who want to destabilize the economic and financial stability of individuals, organizations, societies or states. Many tend to view wealth as a communal asset which should be shared. Therefore, any individual ownership of wealth or business success can be a target.
With eco-terrorism (environmental), the picture is not so clear. Eco-terrorism exists in many forms. The US Federal Bureau of Investigations defines eco-terrorism as the use or threatened use of violence of a criminal nature against people or property by an environmentally-oriented, subnational group for environmental-political reasons, or aimed at an audience beyond the target, often of a symbolic nature. The intent of the group may be to cause direct property damage, but no resulting pollution or collateral damage to people or property. The theory being that the terrorists wish to punish a specific target organization, but not punish or harm unrelated businesses, or cause pollution that impacts the general public. These types of eco-terrorists seek to strike at night or on weekends or when there is minimal staff at the target location.
At the other end of the eco-terrorism spectrum is the radical group that seeks to cause as much direct and collateral damage as possible to both people and property. Their goals include sensationalizing what they perceive to be the evils of the target organization/location. Eco-groups may sabotage new construction or disrupt operations which are contrary to their cause. A classic example is tree spiking; utilized to injure employees of timber harvesting companies. Eco-terrorist groups may also employ tactics to deny businesses the resources they need to operate. This could involve picketing to keep employees from entering work-sites, or the erection of physical or human blockades at points of entry to interrupt the supply chain. Acts of eco-terrorist groups could involve blockades or industrial sabotage against third parties in order to secondarily impact your operations.
A major difference between the types of terrorist groups is that certain politically motivated terrorists are willing to die for their cause. Notwithstanding, in terms of potential damage to business, the radical eco-terrorist could be as disruptive and destructive as a political based terrorist. Accordingly, it should be assumed that either type of terrorist could cause significant damage. It should also be assumed that they are as well organized, sophisticated, and equipped as politically motivated terrorists. Under these guises, many facilities could be viewed as attractive or are near such targets due to the raw materials, process intermediates, or end products manufactured. Everyone should be vigilant to recognize this potential threat and look at existing and possible future actions that can be taken to minimize the risk. The US Department of Homeland Securities current awareness campaign is relevant to vigilance – “If You See Something, Say Something”. All it may take to avert a terrorist event is the observation of suspicious activity and to alert authorities to it.
Terrorist acts may take many forms. Risk Managers should take the time to review their organization’s particular situational exposures and contemplate controls that could be instituted to minimize the threat or the results of a terrorist attack. Some areas of specific analysis could include:
• Airborne pollution potential
• Onsite pollution potential
• Water pollution potential
• Population proximity and density in relation to your facility
• Risks associated with facility profile
• Property-collateral damage potential
• Facility vulnerability and security
• Emergency response planning and assessments
• Situational responses to outside events (what is the response the attacks on nearby facilities).
• Review of the vetting process for third party security providers
• Review of how local emergency response units (fire, police, etc) would respond to various types of terrorist events and how site specific plans could best dovetail with same.
Remember – “If You See Something, Say Something” (US Dept. of Homeland Security)
Posted on April 11th, 2011 by Lynn Sheils
Steve McElhiney presented in a webinar on Friday, April 8th, concerning the Japan Earthquake. Advisen picks up Steve’s comments in today’s Advisen post titled Many U.S. Businesses Lack Coverage for Earthquake Liabilities. See that Advisen post linked here Many US Businesses lack coverage for EQ liab
Posted on April 8th, 2011 by Lynn Sheils
by Glenn Peterson, Senior Vice Presdient – Risk Managment at EWI
There are cetain states and United States protectorates where you must purchase your Workers’ Compesnation coverage directly from the approriate governmental authority. As an example, if you have opertations in Ohio and are not a qualified self insurer, you must arrrange to purchase your Workers’ Compensation covearge through the Ohio Bureau of Workers’ Compensation.
The monopolistic states are Ohio, Washington, North Dakota and Wyoming. The monopolistic protectorates are the U.S. Virgin Islands, Guam, American Samoa, and Puerto Rico.
It is very important to note that monopolistic jurisdiction policies DO NOT provide Employer’s Liability coverage. In order for a business to secure EL coverage for monopolistic jurisdictions, they must arrange for what is known as “stop gap” coverage. Stop gap coverage may be added by endorsement to non-monopolistic Workers’ Compensation and Employers, Liability, or Commercial General Liability, insurance policies. Consult with your insurer to determine what underwriting information they will need in order to provide this important coverage.
Posted on March 7th, 2011 by Lynn Sheils
The third installment of a three part series on enterprise risk management authored by Steve McElhiney, president of EWI Risk Services and president-elect of CPCU Society. This third article discusses the balance that is needed between risk appetities and risk undertakings in order to keep capital levels safe.
Practical ERM Considerations – Part 3
Posted on February 15th, 2011 by Lynn Sheils
BSSA Newsletter February 2011
Posted on January 14th, 2011 by Lynn Sheils
As we continue to conduct business in these difficult economic times, it may be necessary to temporarily shutter or close down certain operations/buildings. When doing so, there are a number of things you should consider:
· Businesses should consider using the services of a watchperson or security service. Any such persons should be trained in emergency procedures including knowing how to notify the local fire department, the locations and operation of existing portable fire extinguishers and, if applicable, the locations of sprinkler system water supply control valves.
· Vacant facilities should be checked after any severe weather events.
· Limit access to those employees who have a business need to visit the premises. Notify watchpersons, if any, when entering and leaving the premises.
· If possible, existing automatic sprinkler protection systems should remain in service. Sufficient building heat should be maintained during cold weather periods to prevent freezing of the sprinkler systems. An alternative would be to convert wet systems to dry systems.
· It may be advisable to remove combustible storage, flammable liquids and hazardous chemicals (if any) from the buildings and drain/cap-off flammable liquid piping. If combustible materials and idle production equipment will remain, they should be located in secured areas. Also, consider removing all outside combustible storage (idle wooden pallets, etc.) and flammable materials.
· All sprinkler system water supply control valves should be maintained in the full-open position using hard shackle locks.
· A management level employee should make regular inspections of the buildings and visual checks of the sprinkler system water supply control valves.
· The facility should be kept in repair and grounds maintained so the buildings do not become targets for vandals.
· Regular self-inspections of the sprinkler systems, water supply control valves, fire extinguishers and building conditions should be conducted.
· All unnecessary electrical equipment and gas-fired appliances should be shut down at the main disconnect points. Outside supply lines should be shut in, as appropriate.
· Cutting and welding operations should be conducted only when absolutely necessary, should be strictly supervised, and should be conducted under the terms and conditions of hot work permits/programs.
· Smoking should be prohibited throughout the buildings.
· All existing fire doors should be maintained in their closed positions.
· Attractive nuisance issues should be addressed.
· Those responsible for insuring the building(s) should review their policies to determine when, and what types of notices, must be given to their insurers relative to vacancy. Many property insurance policies contain such notice requirements. Also of note is that insurance coverage for vacant buildings may be reduced or restricted; refer to your specific policy for details.
