Firestorm

Firestorm Newsletter 20-Nov-08

noemail@firestorm.com — Thu, 20 Nov 2008 19:00:00 GMT

November 20, 2008

Economic crisis

HEADLINE: Survey: Americans Worry Economy Poses Increased Risk to Crime

SUMMARY: A recent survey indicates that Americans are concerned that the current economic crisis could result in an increase in crime. It is more important than ever to ensure adequate resources are allocated to security and prevention. Background checks should be conducted on all employees in the workplace and home alike.

STORY LINK: http://www.insurancejournal.com/comments/?a=/news/national/2008/11/11/95428.htm&c=116523

ANALYSIS: Everyone is under increased stress and pressure. Every newscast and newspaper lists increases in layoffs, robberies and workplace violence. The difference is that it is how happening closer to home. OSHA has identified workplace violence as a vulnerability and requires aggressive investigation of any threats or violence. Many states are pushing legislation on bullying. Every corporation needs to have a written, communicated and trained workplace violence policy.

-- James W. Satterfield, Firestorm President/COO

Communicable illness

HEADLINE: U.S. to give FAO $44 million for avian flu control

SUMMARY: The United States will contribute another $44.4 million to the United Nations Food and Agriculture Organization's (FAO's) campaign to prevent and control avian influenza. "The virus remains present in 10 countries and is mainly entrenched in countries like Egypt, Indonesia and Vietnam," FAO Chief Veterinary Officer Joseph Domenech said. The contribution brings total U.S. support to $112.8 million, making it the leading donor for the program, which operates in 96 countries.

STORY LINK: http://www.cidrap.umn.edu/cidrap/content/influenza/avianflu/news/nov1108fao-jw.html

ANALYSIS: The U.S. contribution to the FAO avian flu program is an investment in global health and national security -- human, agricultural and economic. While the focal nations may seem distant, history has shown that disease can spread rapidly and with devastating effect. The avian flu outbreak in 1918-19 killed an estimated 20-40 million people worldwide, and perhaps 675,000 in the United States. Rapid air travel and our interdependence for even basic staples open the door for an even greater tragedy in today's world. Even if the disease never left the animal kingdom, infected or potentially infected poultry and sick livestock must be removed from the supply chain, at a cost of billions of dollars in lost revenue and increased food prices.

As significant as these investments are, they fall short of the effort needed to conquer communicable disease around the world, according to many experts. Expanding efforts to build human vaccine production capacity in developing nations and increasing international scientific and medical cooperation, often hampered by national politics, are among the highest priorities.

-- Don Donahue, Firestorm Expert Council member

Disaster preparedness

HEADLINE: Evacuation drill saved lives at Oakridge, manager says

SUMMARY: A Los Angeles wildfire burned 85 percent of a mobile home park but resulted in no fatalities. One possible factor is that residents were better prepared because of an evacuation drill conducted last month. Almost 500 of the park’s 604 units were destroyed.

STORY LINK: http://wavenewspapers.com/default.asp?smenu=71&sdetail=11255

ANALYSIS: One of the five common failures of disaster preparedness is failure to test and train on plans. This story shows the value of training and practice. It is the difference between life and death.

-- James W. Satterfield, Firestorm President/COO

Natural disaster

HEADLINE: California Fire Season Now Year-Round in Era of `Mega' Blazes

SUMMARY: Drought, heat, electrical storms and 60-year-old forest-management policies have contributed to a threat of fire that exists every moment for residents of the most populous U.S. state. ``We are in the mega-fire era,' said Ken Frederick, a spokesman for the U.S. Bureau of Land Management. ``California has definitely been the epicenter of wildfire activity this year.' More than 1.42 million acres have burned in California in 2008, up from 1.16 million last year. Across the state, rainfall is below normal while temperatures are higher than average.

STORY LINK: http://www.bloomberg.com/apps/news?pid=20601103&sid=a8pdA6Wy9FOA&refer=us

ANALYSIS: The recent California fires are a reminder that a major loss can occur in a matter of minutes. The significance of these losses for insurers will run into the hundreds of million of dollars for just the Montecito fires. While the costs will be felt in premiums statewide, there are numerous factors that affect the pricing and availability of homeowners insurance. In addition to the proximity to or likelihood for a natural catastrophe, quality of fire department services, a building's age and construction and crime statistics are just a few of the criteria. Not only is coverage provided for the physical premises but liability protection is included. A great practice is to keep duplicates of all of your important papers -- and most particularly your insurance policies -- in a secure location.

-- Peter H. Foley, Firestorm Executive Vice President

20-Nov-08 2:00 PM

Firestorm Newsletter 14-Nov-08

noemail@firestorm.com — Fri, 14 Nov 2008 16:00:00 GMT

November 14, 2008

Business continuity

HEADLINE: Insurers Prepare for the Worst by Strengthening Business Continuity and Disaster Recovery

SUMMARY: While insurance ranks among the industries best prepared to handle business interruptions, carriers need to constantly adapt disaster recovery plans and technology to changing conditions.

STORY LINK:

http://www.insurancetech.com/security/showArticle.jhtml?articleID=212000799&cid=int_topic_null

ANALYSIS: It is good to see an insurance company utilize risk management and prepare business continuity and disaster response plans. American National's response to a short term and limited impact disaster appears excellent. Several disasters can be of a longer term and emphasize supply chain failure. The article cites that less than 30% of all firms test and update their plans at the best-practice level of twice a year. This places the majority of America’s infrastructure at risk and creates a false sense of preparedness. While the financial services sector is heavily regulated, the majority of financial institutions have failed to develop, train and test all planning for communicable illness/pandemic, Red Flag (identity theft), and business continuity.

-- Jim Satterfield, Firestorm President/COO

Public preparedness

HEADLINE: GAO: Obama should address health preparedness, food safety

SUMMARY: Pandemic preparedness and food safety are among the 13 “urgent issues’’ threatening public health that the Obama administration should address next year, the Government Accountability Office said.

STORY LINK: http://www.cidrap.umn.edu/cidrap/content/influenza/panflu/news/nov0708gao.html

ANALYSIS: Who owns these problems? These priorities – food safety and pandemic preparedness -- have been priorities for years, but remain poorly addressed and will be disasters. These are “when’’ issues, not “if’’ issues. America remains behind the curve in developing and implementing plans.

The medical and health system will not be able to handle the surge in a pandemic. The public is completely unprepared. Supply chains will break down instantly and spiral out of control. Basic necessities – food, water, power, and jobs -- will vanish. Civil unrest will be a reality. The communications and education programs have failed.

The private sector represents 85 percent of the infrastructure in the U.S. and is not prepared to address the impacts. The public and private sectors do not believe the threat is real or actionable. To date, government direction has been ignored. On a 1-10 preparedness scale, the country is at a 2. No one owns the problem.

America does not have a workable system to track food to source. Imports represent a growing percentage of the food we eat. We have been put on notice with contaminated foods – apples, tomatoes, fruit, beef, milk in China, pet food and more. We repeat the mistakes of the past. There is lobbying pressure to slow or block regulation. No one owns the problem.

We are in an economic crisis today. If we add either a pandemic or a disruption in food supply with a panic based on real risks, the current economic crisis will increase by orders of magnitude. Who owns the problem? We all do.

-- Jim Satterfield, Firestorm President/COO

Food supply

HEADLINE: The effects of the financial crisis on philanthropy, and other articles about charity and giving.

SUMMARY: In the four months since June, demand for food aid has risen 20 percent in areas of the country with the healthiest economies and more than 40 percent in areas with the weakest, leaders of nonprofit food-distribution organizations say. And they predict that the need will keep growing in 2009 if the job market continues to contract, as expected. Requests are so high that some food centers are turning away the hungry.

STORY LINK: http://www.nytimes.com/2008/11/11/giving/11FOOD.html?hp

ANALYSIS: America has lost more than three-quarters of a million jobs in the past year. The number of people now using food banks, thrift stores, etc., combined with the fact that donations in the form of food, money and clothing are down, show the domino effect is center stage. Thanksgiving and Christmas will be bleak for many who rely on charitable giving. Those who have, quite simply, need to give to those who don’t. The tables could be turned at any moment and Americans need to be in the habit and spirit of giving. There is a Jewish teaching: If all I have is a dollar, and all you have is a dollar, I should nonetheless give my dollar to you, and you should nonetheless give your dollar to me. This is so we remain in the mode and spirit of giving.

-- Joni Charme, Firestorm Expert Council member

Communicable illness

HEADLINE: How avian flu dupes our immune system: study

SUMMARY: A protein found in the H5N1 virus forms tiny tubules in which it hides the pieces of RNA formed during infection, which should prompt an immune response from infected cells. These tubules may explain the high death rate associated with the strain of bird flu.

STORY LINK: http://afp.google.com/article/ALeqM5iPRvqRUQgiG6aD-WTHj-l8UpWDnw

ANALYSIS: This adds another piece to the puzzle and is progress, but not a significant breakthrough. This is basic research and is a long way from solving the problem of a possible pandemic. A significant breakthrough will be when we can treat against the NS1 protein. Of course, it will only be significant when the virus makes the jump to humans.

-- Dr. Stephen Cunnion, Firestorm Expert Council member

14-Nov-08 11:00 AM