PARAMETRIC INSURANCE: CONTINUED FROM PAGE 9
to outdoor property, engineering and safety certification costs, equity protection, the list is endless... Unique Claim Resolution
PEARLS OF WISDOM CELEBR ATING 30 YEARS OF THE GREATER INL AND EMPIRE CHAPTER BY: PAST PRESIDENTS OF THE GREATER INLAND EMPIRE CHAPTER PRESIDENT IN 2014 MS. KIMBERLY LILLEY, CIRMS, CMCA BERG INSURANCE AGENCY
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hen I became President of the CAI Greater Inland Empire Chapter, there was general confusion about what each person, committee, or board member’s goals were, how CAI National fit in, and overall, who was supposed to do what. I considered it to be my goal for the year to help people understand just where they fit in and how they could best contribute to making CAI and the Greater Inland Empire Chapter better. First on the docket, Policies & Procedures at the board level. This document was completely overhauled to reflect the actual policies in place and the board codified the procedures that needed to be in place from one group to the next. Next, the board gave specific “tasking” to each committee so they would each understand their goal: they would know, without having to wonder, what it looked like for them to be successful, according to the board’s overall (big picture) plan. After that, the committees could flesh out exactly the steps they would take to achieve the tasking the board gave to them. The challenge here was not the committees coming up with ideas, it was the board wanting to jump in and micromanage the committees. It is a big adjustment for chapter boards to go from serving on committees (doers) to being chapter board members (visionaries), but knowing that there was a difference helped a lot in keeping each group in their individual “lanes.” Finally, we communicated and interacted more with CAI National and were able to take better advantage of the information and training they could provide. The challenge of clarity of purpose in a large organization is a big one. To achieve that end, good communication is needed, and clarity around what it means to lead is also important. All of this came into play in 2014 when we, as a Chapter, could easily say: “Challenge Accepted!”
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CONNECT MAGAZINE • ISSUE FOUR 2020
One of the most attractive qualities about parametric is its ability to pay rapidly and without adjustment. Typically the insured just sends in a signed statement of loss with their economic claims identified and their check is issued within weeks after verifying that the policy trigger was met. The other really great part is that it pays out regardless of your traditional property carrier’s claim determination. Your property carrier could deny a claim and a parametric policy would still pay. You could even buy only a parametric policy without traditional insurance cover. Minimizes the Stress of Traditional Property Insurance Adjustment During a catastrophic event, insureds may find the claims process to be very stressful. They are joined in with thousands of other policy holders seeking payment and many times the process can drag out as adjuster resources are not infinite. Sometimes the value an insured receives from the carrier may not be what they were expecting or they may find an exclusion of coverage they didn’t fully understand before. In these scenarios, having the benefit of a parametric policy in place can be a godsend and a much needed relief to start the rebuilding process. Over the next decade you will see more and more implementation of this type of coverage and it is worth exploring as an option at your renewal. Austin James, CPCU, ARM is an expert in parametric insurance and catastrophic property placement. Feel free to reach out with any questions. He is able to secure this coverage for you through your existing retail insurance broker. He is an Associate Director of the CAT and Specialty Property Division of The McGowan Companies.
