The Report, Volume 9, Number 4
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The Northeast is not Hurricane-Proof
Even though hurricanes usually hit the Gulf
of Mexico or the Southeast coastline, residents of the Northeast
should not feel smug about their apparent insulation from the
disastrous storms. While very few major storms hit land north
of Virginia, the potential for loss from even a relatively minor
hurricane is staggering.
According to tropical weather expert Steve Lyons, the Northeast
is vulnerable because of the speed at which storms can develop
and travel. "Typically in the Northeast, the primary damage
in the past has been due to flooding where systems come up there
and stall," Lyons said.
Hurricane researchers now consider downtown New York City to
be one of the most vulnerable targets according to an Army Corps
of Engineers report. Major bridges connecting Manhattan with
the mainland are so high that they would experience advance winds
of an approaching hurricane several hours before winds of that
velocity were felt on the ground, forcing early closure of critical
evacuation routes.
In addition, New York’s coastline topography would amplify
the effects of a storm surge so that the surge from even a modest
hurricane could generate deadly flooding in lower Manhattan.
A more intense Category 4 storm would leave JFK International
Airport under 20 feet of water and flood the city’s tunnels
and subways.
Cancel interruptions to keep your cool
Interruptions are a part of doing business. You can’t stop
them, but if you don’t control these time-sappers, they
will control you. Increase your productivity by using these suggestions
from Selling Power to help you deal with interruptions.
Ask visitors a question: "How may I help you?" That
simple, direct query keeps people focused on the reason for their
visit and avoids the obligatory small talk.
Handle small tasks immediately. If you can accomplish a job in
two minutes or less, don’t set it aside. That way, tiny
jobs won’t pile up and you can prioritize tasks that require
more time.
Communicate efficiently. Ask people to use e-mail instead of
dropping by your desk. That way you can handle your response
on your own schedule rather than someone else’s.
Convey a sense of urgency. If someone comes into your office,
stand up. That naturally reduces chitchat. If you can only spare
a minute, politely say so. When you’re ready to conclude
a visit, stand up, shuffle papers or walk to the front of your
desk the next time you are speaking. While it would be rude to
move during a visitor’s comments, it is acceptable to change
positions when the conversation is in your court.
Legally speaking: Pollution exclusion falls in Colorado
The Colorado State Supreme Court has ruled that insurers cannot
use their pollution exclusion clauses to deny coverage to two
cities that must cleanup a Superfund dump site. The ruling earlier
this summer leaves the insurers liable to pay legal cost as well
as the actual cleanup cost for a landfill used jointly by the
cities of Englewood and Littleton.
The case involves eight insurance companies that had refused
coverage to the cities citing the pollution exclusion clause
that excludes coverage when policyholders pollute.
The cities share a joint waste-water treatment plant which dumped
sludge at a landfill in the 1970s and 1980s.
The case involves coverage written prior to the time insurers
started including absolute pollution exclusion clauses in their
policies. The policies being challenged cover pollution when
the source of the pollution is "sudden and accidental."
Fascinating facts
U.S. a leader in fire losses.
Fires kill approximately 4,000 people annually and injure another
25,000, making the U.S. the leader in fire injuries among industrialized
nations. Annual property losses from fire exceed $10 billion
in this country.
The National Fire Protection Association estimates that only
about two percent of the half-million intentionally-set fires
each year are closed with a conviction. Furthermore, fewer than
a third of the fires of "suspicious" or "unknown"
origin are ever confirmed as arson.
An initiative by NFPA, the U.S. Fire Administration, the Alcohol,
Tobacco and Firearms Agency, and American Re-Insurance Company
is aimed at giving investigators the skills that will match the
arsonists. The coalition has produced a CD-Rom that gives standardized
training to firemen, police officers and insurance investigators.
The Great New England Hurricane.
On September 21, 1938, the Great New England Hurricane slammed
into the coast racing at speeds of over 60 mph, too fast to give
time for warnings and evacuations. 682 people died as the killer
storm swept from Long Island to Massachusetts. More than 9,000
homes were destroyed and damage exceeded $300 million. If the
same storm hit New England today, damage could approach $20 billion.
Areas still lack protection of building codes
Despite their ability to minimize loss during a disaster, building
codes are not being used as a mitigating tool in many areas according
to a study by the Institute for Business & Home Safety (IBHS).
The report concludes that many areas in the U.S. remain unprotected
because building codes are not sufficiently stringent for a major
disaster.
The IBHS report, Summary of State-Mandated Building Codes, found
that 20 states allow local governments jurisdiction over building
codes while eight states do not mandate codes for one and two-family
residential construction. The report also notes that 12 states
do not allow local amendments to state-mandated codes.
A total of 18 states do allow local amendments that strengthen
state building codes.
A copy of the report is available by calling 617.292.2003.
Small insurers survive merger mania
Small insurers are holding their own in the wake of the consolidation
of industry giants according to a report by the Insurance Services
Office, Inc. (ISO). During 1998, when 117 mergers and acquisitions
took place worth $55.8 billion, the smaller players managed to
maintain their market share.
While the nation’s top four insurers gained market share
last year, that increase came at the expense of insurers ranking
from fifth to 50th according to the ISO. Smaller insurers saw
their market share rise slightly during the same period.
A U.S. Justice Department report has revealed that homeowners,
general liability and personal auto insurance is concentrating
in a smaller group of insurers while fire, commercial auto, commercial
multiple peril, workers’ compensation and medical malpractice
insurance is flowing to a larger number of carriers.
Second quarter cost insurers $3.25 billion
The property claims unit of the Insurance Services Offices estimates
that insurers will distribute about $3.25 billion to cover second-quarter
catastrophes. Most of the losses occurred in Oklahoma and 17other
states where tornadoes caused an estimated $1.5 billion in damages
arising out of 370,000 claims.
Oklahoma sustained the greatest losses with about $955 million
in claims filed by residents and businesses.
The ISO estimated that payouts for the first half of 1999 would
total $5.1 billion, or about $460 million less than for the same
period last year.
Commissioner proud of industry.
Although Oklahoma insurers have paid more than $376 million in
claims for the May 3 tornadoes, rates are not expected to increase
according to the Oklahoma Insurance Department.
The tornadoes swept through the Oklahoma metropolitan area where
the majority of the losses occurred. Roughly 80 percent of the
losses were covered by insurance.
Insurers are spreading their losses over 20 years according to
Oklahoma Insurance Commissioner Carroll Fisher. "I’m
proud of the way the industry has stepped up to the plate,"
he said.
NY levies fines for Y2k gaps
July was a bad month for 44 insurers who failed to file information
about their Y2K readiness plans with New York regulators. The
state is the first to require mutual and nonpublic companies
to make Y2K plans available for policyholders. Those companies
that failed to comply faced stiff fines.
According to Best’s News, a total of 42 property insurers,
one life company and one health insurer had not complied with
the filing requirement in early July. Most of the companies are
small local or regional insurers.
New York Insurance Superintendent Neil Levin ordered insurers
to file their Y2K plans in February after the Securities and
Exchange Commission required that public companies do the same.
Boosting self-confidence will boost sales
The essence of salesmanship is self-confidence. In order to tackle
new opportunities and deal with rejection, you must feel confident.
Even the top salesmen have times when their confidence falters.
If you find your esteem needs a boost, try these steps suggested
in The Office Professional:
Win a small victory. Perhaps you’ve delayed making
a difficult phone call, starting a tedious project, or going
through a growing pile on your desk. Make an appointment to handle
that task today. If you succeed, your confidence will soar. Even
if you fail, your confidence will get a boost because you dealt
with a problem rather than avoiding it and thereby feeling guilty.
Write down successes. Each day make a note of three things
you have accomplished. Over a period of a few weeks, your list
of successes will grow and you’ll have a ready reference
point for documenting what you’ve accomplished and boosting
your morale.
Compile the kudos. Put all the congratulatory papers,
thank-you notes, complimentary letters and other spirit-boosters
into one place where you can refer back to them. Whenever you
feel down, you’ll have some ready material to remind you
that you can accomplish things that have made a difference to
others. And that’s a thought that can give you confidence
to tackle your next task.
Gender business
According to research by the Management Research Group in Portland
Main, there are documentable differences in the way men and women
conduct business. The company conducted a survey of 900 male
and 900 female managers.
Among their more interesting findings:
- Men tend to be better at business analysis and strategic
planning.
- Women are more focused on getting results.
- Women tend to push themselves and coworkers to produce
at a higher level.
- There is no evidence to support the myth that women
tend to be more collaborative managers or that men are more autocratic.
