The High-Tech, High-Touch Approach Continues

Audrey Selden Senior Associate Commissioner Consumer Protection

Disaster Response The High-Tech, High-Touch Approach –The Strategy Develop coordinated communication plan Provide consumers access to detailed information Facilitate contact with insurance carriers Use technology to write once and publish to the world

Disaster Response

Texas’ Disaster Exposure –Flooding –Hail –Tornadoes –Tropical systems/hurricanes –Thunderstorms –Ice storms –Wildfires –Non weather-related events –Pandemics

Catastrophe Planning Annual Evaluation –Identify and evaluate writers in Tiers 1 and 2 –Factors: market share, exposure, financial condition, self-reported disaster preparedness and physical location –Stress-test various landfall scenarios –Contact insurers with top exposure –Evaluate the need for any regulatory action

Catastrophe Planning

Disaster Response Coordination with State and Federal Agencies –Texas Division of Emergency Management (TDEM) Participate in planning and training exercises Staff State Operations Center Support Rapid Assessment Team –Federal Emergency Management Agency (FEMA) Staff Disaster Recovery Centers Promote National Flood Insurance Program (NFIP)

Disaster Response Assistance to Consumers –Provide insurance information to the public Consumer Help Line: Website: Disaster “resource pages” Consumer publications Staff Insurance Assistance and Disaster Recovery Centers Resolve complaints Monitor market conduct Conduct outreach activities

Disaster Response Claims Results Evaluation –Issue data call –Collect and evaluate data –Refresh TWIA assessment information –Prepare claims results reports

Disaster Response

Disaster Response Disaster Response Effort –Hurricane Dolly Landfall on South Padre Island – July 23, 2008 In the field through September 9 when Hurricane Ike entered the Gulf of Mexico Assisted more than 2,000 consumers at DRCs Answered more than 500 calls

Disaster Response –Hurricane Ike Struck Galveston Island and the Texas coast TDI in the field September 19, 2008 – April 10, TDI volunteers assisted more than 8,000 consumers at 60 Disaster Recovery Centers in 20 locations Coordinated with TDEM Frequent updates to the Hurricane Ike web page Hurricane Ike phone bank and extended Consumer Help Line hours through January 2009 – 11,800+ calls

Disaster Response –H1N1 Pandemic (August 2009) Participated in regular calls with TDEM, Texas Department of State Health Services, Animal Health Commission, and other state agencies Pushed out information to consumers via H1N1 Flu Resource Page Noted Centers for Disease Control and Prevention (CDC) effective use of Twitter and YouTube Surveyed top 300 Texas insurers – three key contacts and summary of their pandemic response plan Reviewed and refined TDI’s pandemic response plan – pushed out information to employees

Disaster Response The High-Touch, High-Tech Approach Continues –Responding to 2010 Disasters Compared to 2009 (no storms), activity may be up Media outreach – radio, television, print Assist consumers individually Prepare for hurricane season – TDI training for executives and volunteers Prepare for pandemics

Disaster Response

Disaster Response Texas State Disaster Coalition (TSDC) –Established early 2001 –Broad membership State agencies – TDI, TDEM, OPIC, OAG Emergency management associations Insurers Trade groups Quarterly meetings Enhance coordination, communication, and response

Disaster Response

Disaster Response

Disaster Response Work with the Insurance Industry –TSDC Issues Addressed Coordinated disaster plan Information sharing Post-event access to impacted areas Adjuster licensing Industry preparedness (pandemics, cyber security) Annual disaster plan survey Annual pandemic plan survey

Disaster Response TDI Disaster Survey to the Insurance Industry –Does the company have a disaster response plan? –Does the plan include information about How the company will address increased claims activity? How the company will oversee the claims process? How the company will communicate to policyholders? –Does the company have a business continuity plan? Has the plan been reviewed in the last 12 months? Is the plan tested periodically? Does the plan address how critical functions will be performed in the event of a pandemic?

Disaster Response State and Federal Legislation –81 st Legislature – certain Gulf Coast residents must purchase flood insurance before they are eligible for Texas Windstorm Insurance Association coverage –Texas Legislature convenes January – May 2011 –U.S. Congress National Flood Insurance Program Department of Homeland Security –FEMA –Disaster response –Fraud prevention

Disaster Response Contact Information –Consumer Help Line: –Fraud Hot Line: –Arson Hot Line: –