ifaa pcs, 2015 cats, & technologyifaa+joe+louwaige.pdfprimary insurance carriers independent...

IFAA

PCS, 2015 Cats, & Technology May 19, 2015

Joe Louwagie AVP

Property Claim Services

© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.

Mission Statement PCS is committed to serving our customers and

supporting the global insurance industry through the

identification and provision of reliable, accurate,

objective, and timely catastrophe loss estimates.

Core Values

Service

Integrity

Objectivity

Confidentiality

Transparency

Reliability

Consistency

Operating Principles We will achieve our mission by:

Exceeding service and quality expectations

Facilitating an ease of doing business

Consistently producing a high quality product

Innovating within a culture of continuous improvement

Providing value in corporate citizenship

Who We Are


U.S. catastrophe claim information since 1950

PCS formed at request of insurance industry

Loss development surveys started in 1998

Estimates based on retrospective claims review

PCS Canada since 2010

Continual improvement amid consistency w/past

Aggregating Actual Claims Data for 63 Years

PCS History Serving the insurance industry


Homeowners and the public

Primary insurance carriers

Independent Claims Adjuster firms

NOAA and governmental economists

Industry quarterly and annual reports

Catastrophe modelers

Reinsurers and reinsurance brokers

Capital markets

Providing a Service to Support the Insurance Mechanism

PCS Data Users Broad benefit across industry and in various sectors


Event Identification within 24 hours

Pro-active carrier outreach

Tracking of multiple weather systems

Site visits & ride-alongs w/major events

$25M and “significant” carrier and policyholder numbers

Data requests at aggregated levels

Re-survey if over $250M until final estimate

“Timely PCS Cat Designation is critical to us. Every minute that passes without

the designation means more claims to manually find later to add the cat code. It

directly impacts our ability to allocate resources efficiently after catastrophes” - Claims Executive at the 2013 PCS CAT Conference

Continual Weather Monitoring

PCS Estimate Process Overview Cat Designation


3.06

6.52

3.55

10.65

7.75 8.95

24.4

14.39

9.95

15.4

12

20

13

25

18

22

19 19 18

32

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

PCS Cat Activity 2014 Winter storms and thunderstorms

2

0

1

4

A

v

e

r

a

g

e

Thunderstorms Drive 2014 Activity

``

32 designated cats

$15.4B in insured loss

6 winter storms, 1 EQ

25 Thunderstorms

27 designated cats

$21B in insured loss

More peril diversity

#

o

f

C

a

t

s

(In $B)


Challenging 2014 and 2015 CATS Winter storms

Heavy snow and/or low temps

Multiple fronts

Cumulative snow effect

O

v

e

r

v

i

e

w

P

C

S

The date range challenge

Reviewing past PCS

Aligning to our role

Winter Storm dates & damages oftentimes don’t align


Cat No. Period States Perils Status Personal Auto Commercial Total insured Loss

63 Feb 14 - 15 CT, DE, MA, MD, NH, NJ, NY,

PA, RI, VA Freezing, Ice, Snow, Wind Open $327,230,000 $4,240,000 $134,730,000 $466,200,300

64 Feb 16 - 17 GA, NC, SC, TN, VA Freezing, Ice, Snow, Wind Closed $47,960,000 $3,718,000 $18,670,000 $70,348,000

65 Jan 26 - 28 CT, MA, ME, NH, NY, RI Freezing, Ice, Snow, Wind Closed $31,320,000 $2,119,000 $9,570,000 $43,009,000

66 Feb 1 - 4 CT, IL, IN, MA, MI, NY Freezing, Ice, Snow, Wind Closed $78,680,000 $1,607,000 $20,630,000 $100,917,000

67 Feb 7 - 11 CT, MA, NH, NY, RI Freezing, Ice, Snow, Wind Closed $187,850,000 $1,969,000 $37,603,000 $227,422,000

68 Feb 16 - 22 CT, DC, DE, IL, KY, MA, MD,

ME, MI, NC, NH, NJ, NY, OH,

PA, RI, SC, TN, VA, VT

Freezing, Ice, Snow, Wind Open $1,074,700,000 $9,235,000 $268,150,000 $1,352,085,000

69 Mar 3 - 5 AR, KY, NY, PA, WV Flooding, Freezing, Ice, Snow, Wind Closed $96,600,000 $1,656,000 $20,850,000 $119,106,000

70 Mar 25 - 26 AR, KS, MO, OK Hail, Tornadoes, Wind Open $188,080,000 $58,860,000 $55,640,000 $302,580,000

71 Mar 31 - Apr 1 AL, AR, GA, MS, OK, TN, TX Flooding, Hail, Wind Closed $92,650,000 $39,254,000 $3,757,000 $135,661,000

1st Qtr. $2,125,070,000 $122,658,000 $569,600,000 $2,817,328,000

72 Apr 2 - 3 KS, KY, MO Flooding, Hail, Tornadoes, Wind Closed $105,800,000 $24,600,000 $51,800,000 $182,200,000

73 Apr 7 - 10 AR, IA, IL, IN, KS, KY, MI,

MO, NC, OH, OK, PA, TN,

TX, WI, WV

Flooding, Hail, Tornadoes, Wind Open $529,590,000 $142,510,000 $107,850,000 $779,950,000

74 Apr 16 - 17 KS, OK, TX Flooding, Hail, Tornadoes, Wind Closed $42,480,000 $56,345,000 $3,330,000 $102,155,000

75 Apr 18 - 21 AL, AR, FL, GA, KS, LA, MS,

NC, OK, PA, SC, TN, TX Flooding, Hail, Tornadoes, Wind Open $570,870,000 $164,938,000 $46,140,000 $781,948,000

76 Apr 24 - 28 AL, FL, GA, KY, LA, MS,TX Flooding, Hail, Tornadoes, Wind Open TBD TBD TBD TBD

77 Apr 27 - 28 MD Riot; Civil Disorder Open TBD TBD TBD TBD

78 May 3 - 4 IA, KS, MN, NE, WI Flooding, Hail, Tornadoes, Wind Open TBD TBD TBD TBD

79 May 6 - 11 CO, IA, KS, NE, OK, TX Flooding, Hail, Tornadoes, Wind Open TBD TBD TBD TBD

2nd Qtr. $1,248,740,000 $388,393,000 $209,120,000 $1,846,253,000

2015 Total $3,373,810,000 $510,051,000 $778,720,000 $4,663,581,000

2015 PCS Cats Overview Driven by Winter Storms and Thunderstorms


PCS Canada 2014 Cat Activity

PCS Committed to Canadian Market with Continual Enhancement

Dates Event Type Designation Cat# January 3 - 5 Winter Storm - Central and Eastern Canada No

January 5 - 8 Winter Storm - Central and Eastern Canada No

March 28, 2014 Winter Storm - Atlantic Provinces No

April 24, 2014 Earthquake - 6.6 off the coast of Vancouver No

June 18, 2014 Wind and Thunderstorm - Alberta Flooding No

June 17 - June 18 Wind and Thunderstorm - Tornado in Airdrie,

Ontario Yes 46

June 28 - July 1 Wind and Thunderstorm - Flooding in Manitoba

and Saskatchewan Yes 47

July 5 – 6 Tropical Storm Arthur - Maritimes/Eastern Canada No

Aug 4 - Aug 5 Wind and Thunderstorm - Ontario Flooding Yes 48

Aug 7 - Aug 8 Wind and Thunderstorm - Alberta Flooding Yes 49

Aug 13 - Aug 14 Wind and Thunderstorm - Ontario and Quebec No

August 22, 2014 Wind and Thunderstorm No

November 24-25 Wind and Thunderstorm – Ontario and Quebec Yes 50


PCS Canada 2014 Cat Activity

5 Catastrophes

Investigated 13 events

PCS monitoring closely

PCS Committed to Canadian Market with Continual Enhancement

2

0

1

4

#

4

9

Widespread damage

$546M insured loss

44,600 claims

Dates Event Type Designation Cat# January 3 - 5 Winter Storm - Central and Eastern Canada No

January 5 - 8 Winter Storm - Central and Eastern Canada No

March 28, 2014 Winter Storm - Atlantic Provinces No

April 24, 2014 Earthquake - 6.6 off the coast of Vancouver No

June 18, 2014 Wind and Thunderstorm - Alberta Flooding No

June 17 - June 18 Wind and Thunderstorm - Tornado in Airdrie,

Ontario Yes 46

June 28 - July 1 Wind and Thunderstorm - Flooding in Manitoba

and Saskatchewan Yes 47

July 5 – 6 Tropical Storm Arthur - Maritimes/Eastern Canada No

Aug 4 - Aug 5 Wind and Thunderstorm - Ontario Flooding Yes 48

Aug 7 - Aug 8 Wind and Thunderstorm - Alberta Flooding Yes 49

Aug 13 - Aug 14 Wind and Thunderstorm - Ontario and Quebec No

August 22, 2014 Wind and Thunderstorm No

November 24-25 Wind and Thunderstorm – Ontario and Quebec Yes 50


PCS Cat Activity 2014 Partnering with Independent Claims Adjusters

Swift access to PCS designated catastrophe events

Ensuring proper invoicing for PCS events through use of cat code

PCS advocates for the Independent Adjuster claims community

PCS metrics support action planning for growth

Arthur and Iselle

Contact with 16 IA firms

On the ground as it occurred

Intel supported no cat designation

CIAA strategic alliance in January 2015

IA PCS Benefits

Arthur

Iselle


PCS Innovation App released in 4th quarter 2014

PCS Innovation Driven by Customer Feedback

PCS APP

Serves a need for field access

PCS Canada-Mobile now active

Facilitates future innovation

Android & Blackberry soon

Photo/video uploads by 3rd Qtr.


Commenced in April “PCS Benchmarking” Service

By July 2015: launch/analyze/distribute catpay report

Benchmarking Reports Free to Data Contributors Who

Also Participate in the Surveys

PCS Benefits PCS Benchmarking

Personal cat claims management (publish by 11/15/15)

Commercial cat claims management (2nd qtr. 2016)

Cat vendor management

Independent Adjuster cat management


Need for an industry index

Facilitate growth of the market

Share global best practices

PCS Turkey purpose is to serve Turkish insurance market

PCS Turkey Pursuit of a new PCS index

Market need

Broad meetings with govt. and carriers

Partnering with a market service provider

Probable launch in 2nd quarter 2015

Project status


Market demand for energy and marine index

Current inability to transfer risk effectively

Responding to customer requests for PCS to review

PCS Global Energy and Marine decision in 3rd Qtr 2015

PCS Global Energy and Marine Pursuit of a new PCS index (fully separate from core PCS)

Market need

Hired in April ’14 consultant to develop methodology

Commenced two working groups in July ‘14

Broad industry representation on both work groups

Reinsurers / Primaries / Adjusters / Risk Sources

Project status


Cat Planning and New Technology Property claim technology awareness

When I was an adjuster in Sioux Falls, South Dakota Camera

Tape measure

Notepad

Dictaphone

Calculator

Estimating worksheets

When I managed a property claims region Digital camera to upload from home

Tape measure

Scoping notes

Pre-mobile cell phone

Dictaphone

Calculator

Laptop

20 years ago

6 years ago


Dimension rooms Diagram structures

Technology presented in 2014 as “years away” has

become a reality by 2015

Cat Planning and New Technology Property claim technology is changing the industry

Mobile Device

Thermal Imaging


Claims Technology Remote diagramming and remote adjusting

Drone diagramming

Exterior and Interior remote diagramming available in

2015 or 2016; race then begins to apply and use it

Multiple companies racing to patent this

Will be combined with thermal imaging

Can record video and download to file

Mobile device maps interior for XACTIMATE

Video file created and downloaded to file

Estimate written and submitted to insured

Mobile diagramming

https://www.youtube.com/watch?v=I5xYqpy9aLA

https://www.youtube.com/watch?v=paTQcK25rK4


Claims Technology Existing challenges

Drone diagramming

Exterior and Interior remote diagramming available in 2015

or 2016; race then begins for how to apply and use it

Strict FAA issues for line of sight and airports

Unresolved privacy and civil liability issues

Drone training needs to be extensive

Significant cost to operationalize

Capability and willingness of policyholders

Changing skills needed for Adjusters

Mobile diagramming

https://www.youtube.com/watch?v=I5xYqpy9aLA

https://www.youtube.com/watch?v=paTQcK25rK4


Cat Planning and New Technology Leveraging mapping technology from an IA perspective

Quickly Identify extent of probable damage

Matching claim size to skill level

Improves accuracy, customer service

Reduces cycle time

Overlays claims to damage

Matches before/after visuals

Improves ability to quickly assess


Cat Planning and New Technology The big question……..what will happen

How will companies use the technology and how fast?

What will be the impact to staff field adjusters?

What will be the impact to IA field adjusters?

• Drone operational skills

• Broad use of IAs instead of staff or less use?

• Centralized estimating with mobile inspection?

• Post-event cat site logistics and management

How will loss prevention and mitigation change?


PCS 2015 Our message for IFAA members

Thank you for the opportunity to be here today

Our mission is to serve the global insurance community

Benefits to local industry

Insured loss estimate for claims, underwriting, risk transfer

Free PCS Benchmarking reports to contributing companies

Global speakers at local conferences on topics of value

If PCS could be of value in your country, let’s talk


Objectivity Integrity Service Transparency Reliability Consistency

ifaa pcs, 2015 cats, & technologyifaa+joe+louwaige.pdfprimary insurance carriers independent...

Documents