Managing Risks For A Safer Tourism Plant! Mark W Blakeley! Friday, November 17, 2017!
Disaster Insurance & Tourism ! •
Types of Disasters!
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Impact of Disasters!
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Impact of 2017 !
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Outlook for 2018!
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Post Disaster Steps!
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Insurance Protection & Tips!
Hazards for Tourism! Atmospheric!
Geological!
Biological!
Human! Industrial Accidents!
Hurricanes!
Earthquakes!
Tornados!
Tsunamis!
Storms!
Landslides!
Floods!
Volcanoes!
Plagues!
Economic!
Frosts!
Erosion!
Fires!
Political Conflict!
Epidemics!
Traffic Accidents! Terrorism!
Source: Adapted from Granger K (200) “An information infrastructure for disaster management in Pacific Island countries...�!
Consequences of Hazards!
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There are 2 main areas that are affected from Disasters! •
The Destination (physical location/s)!
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The tourists!
Risks Types in Tourism Destinations! High!
Severity of incident!
Natural Disasters (e.g. Hurricanes, earthquakes, flooding, etc) ! Terrorism! Morbidity! Medical Ailments! Minor Illness! Loss of Personal effects!
Low!
High!
Frequency of incident!
Types of Losses From Risks inTourism Destinations! •
Human losses!
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Property losses!
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Environmental losses!
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Decrease in income!
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Main Types of Insurance For Tourism Sector ! •
Fire and Allied Cover for Property!
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Employee Liability!
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Public Liability!
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Consequential Loss!
Caribbean Estimated Losses from 2017 Hurricanes !
Reinsurance Losses October 2017! 3rd Quarter Market Losses (all figures in USD) (Re) Insurer
Harvey
Irma
Maria
AIG
1.1bn - 1.2bn
1.0bn - 1.1bn
600m - 700m
Mexico Earthquakes 150m
Total 2.9bn - 3.1bn
Amtrust
40m - 65m
Arch
319.8m
Argo
85m - 110m
Aspen
110m
135m
65m
50m
310m
Axis
287m gross
295m gross
152m gross
45m gross
578m
Beazley Chubb
175m - 275m 650m
891m
220m
25m
1.89bn
Everest Re
1.2bn
Chaucer
115m - 135m
Hiscox
150m
Lancashire
106m - 212m
Lloyd’s
Harvey & Irma 3.9bn
900m
4.8bn
Maiden
8m - 31m
Mapfre
150m - 200m
Markel
503m
MS&AD Munich Re
134m - 223m
267m - 446m
178m - 223m
3.19bn combined total hurricane losses
45m - 90m
681m - 971m 3.78bn
Novae
60m
Partner Re
475m
Reinsurance Losses October 2017! Qatar Insurance
174m
QBE
600m
Renaissance Re
275m
300m
236m
68m
SCOR Sompo Swiss Re
615m 510m
212m
326m
71m
3.425bn combine total hurricane losses
9m
618m
175m
3.6bn
Tokio Marine
190m
290m
80m
30m
580m
Validus
146.4m
163.2m
57.7m
11.6m
367.3m
W R Berkley XL Group
107m 370m
592m
Zurich
Source: AHJ October 2017 news Letter.!
370m
1.48bn 700m
Insurance outlook for 2018!
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Reinsurance costs are expected to increase world wide. Caribbean not spared.!
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Local insurance rates expected to increase anywhere from 25 to 30% !
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Other Islands could be as much as 200%!
Insurance Tips for Tourism Sector! •
Maintain up-to-date property values/Sums Insured! •
Avoid application of Average! •
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Claim = Loss Suffered x Insured Value/Total Cost!
Maintain current up-to-date listings of your contents and their values.!
Insurance Tips for Tourism Sector! •
Opt for Consequential loss or Business interruption cover.! •
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Specify you indemnity periods.! •
3 – 12 month period. !
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Indemnity follows he policy period!
Identify mutual dependents! •
Food suppliers!
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Transportation!
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Sewage & Waste Haulage!
Insurance Tips for Tourism Sector! •
Ensure you have put away cash to cover your deductible.! •
2% is standard!
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However you can opt to increase up to 5% which will lower you premiums. !
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Hurricane shutters and other defences.!
Insurance Tips for Tourism Sector! •
Ensure you have a well executable Disaster Plan.!
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Tourists can become a “threat” during and after a disaster. However, they can become an advantage if you have a strong DR and Communications plan.! •
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http://www.preventionweb.net/files/ 14232_14227TourismSectorDevelopmentPlanMa.pdf!
Have access to someone who is qualified and can prepare estimates of damage.!
DR Plan Activities Post Event! •
Convene EMT to activate response/restoration procedures!
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Check safety of guests and security of property. Carry out head counts.!
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Activate communications plan!
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Facilitate contact between guests and family and friends!
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Liaise with tour operators and travel services for guest departures!
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Assess Damage!
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Document and photograph damage!
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Prioritize clean up and salvage!
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Seek mutual aid as needed especially to comfort guests!
SGI Disaster Settlement Procedures! Call Your Broker or Insurance Company! A cheque will be issued within 10 working days of receiving the loss adjusters report and signed release!
List or document your losses and take pictures !
A Loss Adjuster will be appointed to inspect damage to your property and negotiate settlement!
Obtain and secure estimates for repairs to your property!
Secure your property the best you can to prevent further damage!
Where possible do not dispose of any contents or materials that would form part of your claim!
About Sagicor General! •
AM Best A- rated company!
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Subsidiary of Sagicor Financial Group!
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Over US $100m in Assets!
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Great claims settlement reputation!
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Multi-Island writer!
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Over 137 years of operation!
QUESTOINS?!
QUESTIONS!