The Insurance Industry’s Contribution to Community Impact Development I.I.I. Members AAA of Northern CA, NV and UT ACE USA ACUITY AEGIS Insurance Services Inc. Allianz of America, Inc. Preparing for the Unexpected Allied World Assurance Company Allstate Insurance Group ombings at the Boston Marathon. Explosion at a fertilizer plant in Texas. Violent ALPS Alterra Capital Holdings Group Btornadoes in Oklahoma. American Agricultural Insurance Company American Family Insurance While we already had plans for the summer issue of Impact to focus on the industry’s American Integrity Insurance Company American International Group response to Superstorm Sandy, these three occurrences reminded us that catastrophes, American Reliable Insurance Amerisafe whether natural or manmade, just keep on happening. Amerisure Insurance AmWINS Preparing for the unexpected will always be a challenge, but hopefully these stories will Arch Insurance Group Arthur J. Gallagher show you how insurers rose to the occasion and stepped up their operations—even though Aspen Re Auto Club South Insurance Company many companies and agents themselves were located in the hardest hit areas. Beacon Mutual Bituminous Insurance Companies Before, during and after Superstorm Sandy, insurers were on the ground in full force to Catlin U.S. Century Surety Company help their policyholders. Cat vans and claims teams immediately sprung into action. Even Chubb Group of Insurance Companies Church Mutual Insurance Company CNA without electricity, checks were drawn up on the spot. Some claims people even handed The Concord Group COUNTRY Financial out water and stuffed animals. Generous financial contributions were made and many Crawford & Company The Crichton Group fund-raising efforts were established. CUMIS Insurance Society, Inc. DeSmet Farm Mutual Insurance Specifically, we feature: Allstate, Chubb, ERIE, Fireman’s Fund, GEICO, The Hanover, Company of South Dakota Dryden Mutual Insurance Company The Hartford, IBHS, Liberty Mutual, MetLife, Nationwide, Selective, State Farm, USAA and EMC Insurance Companies Employers Insurance Company Zurich North America. We will let the stories and photos speak for themselves. Enumclaw Insurance Group Erie Insurance Group In its 2013 Atlantic hurricane season outlook issued recently, NOAA’s Climate Farm Bureau Insurance of Missouri Farmers Group, Inc. Prediction Center is forecasting an active or extremely active season this year. And we are FM Global GEICO proud to know that the industry will be there for its policyholders to pay claims, hold Gen Re Germania Insurance hands and help rebuild property and lives. Grange Insurance Association Grange Insurance Group GuideOne Insurance The Hanover Insurance Group Inc. The Harford Mutual Insurance Cos. Harleysville Insurance The Hartford Financial Services Group Robert P. Hartwig, Ph.D., CPCU The Horace Mann Companies Ironshore Insurance Ltd. President, Insurance Information Institute Kemper Corporation Liberty Mutual Group Lloyd’s Lockton Companies Inside: Magna Carta Companies Marsh Inc. There When You Needed Us...... 3 MetLife Auto & Home Michigan Millers Mutual Ins. Co. Moment of Truth in Challenging Times...... 4 Millville Mutual Insurance Company Missouri Employers Mutual Insurance Paying Claims and Restoring the Shore...... 6 Motorists Insurance Group Stepping Up After the Storm...... 8 Munich Re Nationwide An Outpouring of Giving...... 10 New York Central Mutual Fire Ins. Co. The Norfolk & Dedham Group Mobilizing for Superstorm Sandy...... 12 Ohio Mutual Insurance Group OneBeacon Insurance Group In the Line of Claims Duty...... 13 PartnerRe Pennsylvania Lumbermens Mutual Rising to the Occasion...... 14 Insurance Company Using Building Science to Help Guide Critical Aspects of Post-Sandy Recovery...... 17 Providence Mutual Fire Insurance Co. QBE Regional Insurance Superstorm Sandy — Record Claims; Record Response...... 20 Scor U.S. Corporation SECURA Insurance Companies Tried and True Catastrophe Plans Led to Successful Storm Response...... 22 Selective Insurance Group State Auto Insurance Companies Meeting Sandy’s Challenge...... 24 State Compensation Insurance Fund of California Sandy: Helping Customers Recover from the Unexpected...... 26 State Farm Mutual Automobile Ins.Co. Employee Resiliency Proves Fruitful for Customers, Communities...... 28 The Sullivan Group Swiss Reinsurance America Corporation Tales from the East Coast...... 31 Travelers USAA Utica National Insurance Group Westfield Group Summer 2013 Vol. 19 No. 1 Impact is published by the Insurance Information Institute, 110 William Street, W. R. Berkley Corporation New York, N.Y. 10038; 212-346-5500. Editor: Diane Portantiere; ©2013 Insurance Information Institute, www.iii.org XL America Group Zenith National Insurance Corporation On the cover: Fireman’s Fund Claims Professional Trent Gillette responds to Hurricane Sandy’s devastation in Zurich North America Union Beach, New Jersey. Photo: Mike McLaughlin Photography. There When You Needed Us

urricane Sandy wreaked ruption to public transit systems. our commitment to help members havoc along the Eastern Approximately 1.3 million USAA such as Bill and Margaret Long put Photo courtesy of USAA. HSeaboard, forcing the evacu- members live in the areas affected by their lives back in order as quickly as ation of hundreds of thousands of Sandy. Within 24 hours of landfall, possible. Here, the Longs hold family residents and causing widespread USAA had issued more than 1,000 members’ dog tags discovered amid power outages and massive dis- claims payments — an illustration of the ruins of their home. n

3 Moment of Truth in Challenging Times s forecasters were making ately after the superstorm. Pennsylvania. “Staging allowed us predictions about the power Prior to Sandy making landfall, to get our national catastrophe team Aof Sandy and its projected Allstate’s National Catastrophe Team members and units positioned in safe path, Allstate Insurance Company was moved into place at various locations places, but close enough to areas that forming a virtual war room, bringing up and down the East Coast and Mid- may have been impacted by Sandy,” together all the teams that need to Atlantic Region, including Raleigh, said April Eaton, Corporate Relations respond before, during and immedi- North Carolina, and Harrisburg, Manager, Allstate National Media. “Once the hurricane made landfall, and authorities allowed us in, we were able to move from the staging area or holding pattern and go into the heavily damaged communities to help Allstate customers begin the claim process.” During the height of their

Photos courtesy of Allstate. response, Allstate dedicated more than 4,000 claim personnel and two dozen mobile claim vehicles to assist policy- holders with claim needs. Teams of Allstate adjusters can- vassed neighborhoods by foot looking for affected customers and helped them begin to pick up the pieces. Using their newly created Catastrophe Response Teams (CRTs) with their Catastrophe Response Vehicles (CRVs), Allstate was able to quickly assemble and deploy a coordinated customer response effort. The CRVs complement the National CAT Team’s established response effort, are smaller vehicles and can easily maneuver city streets to get to devastated communities. The vehicles are stocked with sup- plies including customer care items, water and even teddy bears for kids. Positioning the CRVs throughout the East Coast and having claim person- nel on the ground walking through heavily damaged neighborhoods was especially important in Sandy’s after-

Photos courtesy of Allstate. math, particularly as gas shortages left

4 Allstate Catastrophe Team members at work at a mobile claim center.

many people stranded. to Connecticut and Pennsylvania to St. Bernard Project is truly a very spe- Senior Claims Service Adjuster work alongside the disaster teams sta- cial organization.” Jared Stock noticed a puzzled expres- tioned in those areas. Responding to Allstate was a primary sponsor sion on the face of one customer as catastrophes is Allstate’s “moment of of NBC’s national Hurricane Sandy he approached her New York home. truth” with policyholders. It is impor- telethon. Additionally, more than He identified himself as a member of tant that the company provide the 1,200 Allstate employees donated to Allstate’s National Catastrophe Team, best possible service all the time, but the American Red Cross to assist those and explained he was in the storm- also during challenging times. impacted by the storm. Through orga- ravaged neighborhood to “reach out As the catastrophe team worked nizations such as Feeding America, to our customers to ensure they are with customers to get them back on Operation Hope and countless local safe, find out if they have any imme- their feet, the company also turned nonprofit organizations, the company diate needs and assist them with the its attention to helping entire com- continues to help families rebuild after claims process if needed.” munities rebuild. Allstate and The the storm. The customer had several downed Allstate Foundation donated more Rebuilding continues today and trees in her yard and the widespread than $1.2 million to nonprofit orga- recently The Allstate Foundation, power outage not only left her with no nizations dedicated to Sandy recovery Allstate New Jersey and the Coastal electricity, but also forced her agent’s efforts. One grant, in the amount of Habitat for Humanity announced the office to close. With no cell phone ser- $5,000 was awarded to the St. Bernard three groups would join together to vice, she’d been unable to call Allstate Project, Inc. Allstate Agent Colleen help 40 Manasquan, New Jersey, resi- herself. “We walked to the backyard, Torpie nominated the organization to dents impacted by Superstorm Sandy. sat down and filed a claim,” Stock said. receive funding and then volunteered Thanks to a $125,000 grant from The “Claim adjusters sat down with to clear debris from a flooded home Allstate Foundation and volunteers our customers and answered ques- in Far Rockaway, New York. “We had from Allstate New Jersey Insurance tions, took them through the claims such a great day volunteering with the Company agents and employees, process and in some cases, even pro- St. Bernard Project,” said Torpie. “We Coastal Habitat’s Neighborhood vided a check,” said Cathy Mayo, were in hazmat suits wearing filtered Revitalization Initiative will lead the Communication Manager from the face masks and got an orientation on charge in repairing and restoring ten Florida Region who was deployed what we would be doing in the house. homes on the Jersey Shore. n

5 Paying Claims and Restoring the Shore

torm Sandy struck areas where commercial customers, Chubb and collections into the five-gallon water the Chubb Group of Insurance its employees engaged in a variety bottles. Pennies deposited in each SCompanies has significant mar- of fund-raising and volunteer efforts team’s own bottle were counted as ket presence — the states of New York, to help storm victims. Shortly after positive contributions and non-penny New Jersey and Connecticut — with the disaster, The Chubb Corporation coins and paper money and checks devastating wind and water damage announced that it had established a that teams deposited into their compet- and lengthy power outages. Chubb’s $1 million fund for relief efforts related itors’ bottles were counted as negative losses from Sandy resulted in by far the to Storm Sandy. Of that amount, the contributions. The bottle with the largest number of claims from a single company contributed $500,000 to highest net contributions was deemed event in the company’s history. And the American Red Cross for disaster the winner. The Penny Wars generated it left Chubb’s Warren, New Jersey, relief. The company also said that $3,340, before matching gifts, for the headquarters and scores of company it would match on a two-for-one Red Cross. employees who live and work in New basis, up to $500,000, contributions Another event, which occurred Jersey and throughout the storm’s path made by employees worldwide to any more than a month before Storm without power and with their own disaster relief organization that is a Sandy struck, also helped to provide property damage. qualified U.S. 501 (c) (3) tax-exempt assistance to Sandy victims. Five hun- Despite the challenge, Chubb organization. If total employee dona- dred employees at three Chubb Claim and its employees — many working tions exceed $250,000, Chubb would Service Centers in Chesapeake, Virginia, remotely from home as they tried to continue to match those dollars on a Phoenix and Simsbury, Connecticut, personally recover from the storm — one-for-one basis. donated 5,744 disaster-relief items put business continuity plans into Chubb branches from across the and assembled them into 400 comfort effect to continue to provide seamless country, as well as business units and kits for the Red Cross to distribute to service to personal and commercial home office departments, also took it disaster victims. They also contributed insurance customers, agents and bro- upon themselves to create their own $2,400 to fund additional kits. kers. As the calls began to pour into efforts. The Chicago branch, for exam- Chubb employees are continu- Chubb’s claim centers, Chubb employ- ple, raised about $1,000 for the Red ing to support victims of the storm. ees responded personally to customers. Cross immediately after Sandy, and Beginning this past March, employees They spoke to those customers for as then ran three events in which jeans, from Chubb Personal Insurance (CPI), long as they needed to talk and with Paid Time Off (PTO) days and baked one of Chubb’s three major strategic great empathy. Adjusters and damage goods were sold to raise an additional business units, have been organizing a mitigation and restoration services $1,705. series of “Restore the Shore” events in stood at the ready, and headed into The Accounting Department in New Jersey. Some 100 employees from communities as soon as authorities per- Warren, New Jersey, also made the CPI, as well as Chubb Commercial mitted access. The end result: 98% of American Red Cross Hurricane Sandy Insurance, Chubb Specialty Insurance personal lines claimants responding to Relief Fund the beneficiary of its sec- and departments in the Warren head- a survey were “highly satisfied” by the ond Penny Wars Challenge for Charity. quarters, and family members already claim service Chubb provided. The 100-member department was have logged more than 800 volunteer In addition to honoring their split into five teams, and each team hours in helping tear down storm- obligations to their personal and collected money and deposited their ravaged homes and removing sand

6 Photos courtesy of Chubb. Chubb employees pose in their protective uniforms and gear while taking a break from help- ing remove damaged walls, other materials and possessions from a home on the Jersey Shore.

from and rebuilding other homes on the Jersey Shore. In one case, some employees helped a single mother with a seven-year-old son construct temporary living quarters while the woman continues to seek funds to raise her home 12 feet and reconstruct the entire interior. The employees and family members also have planted dune grass, and have provided other With summer coming, these and they are planning more Chubb assistance to affected residents, includ- employees are concerned that fewer employee volunteer events. They are ing the collection of more than 50 people will be volunteering to help planning to continue these events for prom dresses for high school girls. affected residents rebuild their homes, as long as they are needed. n

Chubb employees and family members help a homeowner dig out from Storm Sandy.

7 Stepping Up After the Storm

rom Hurricane Katrina to deployed claims reinspectors and dual purpose: They allow claims han- the Haitian earthquake to dozens of claims handlers to a stag- dlers to perform administrative tasks Fthe Japanese tsunami, Erie ing area just outside the areas that and act as a visible reminder of ERIE’s Insurance has a history of helping were about to be affected,” said Mark presence in the affected areas. areas affected by natural disasters. Dzuricky, an inside claims supervisor After Superstorm Sandy struck, That commitment, however, took on a at ERIE who served as a Catastrophe ERIE sent five CRUs to heavily affect- new sense of urgency after Superstorm Coordinator during Superstorm Sandy. ed areas in eastern Pennsylvania, Sandy whipped through seven states “From there, we waited until the storm Maryland, Virginia and West Virginia. in which the Pennsylvania insurer passed before we headed to our heavily Deployments are fast since ERIE’s nine does business. affected Allentown and Philadelphia CRUs are strategically located no more Whether it was through fast, fair offices.” The company also consulted than three hours from any area that and compassionate claims handling or a well-crafted disaster recovery plan could be affected in its 11-state foot- targeted charitable outreach to affected prepared jointly by specialists at ERIE’s print. areas, ERIE and its employees stepped field and home offices. There’s no doubt technology and up to help customers and the larger In order to live up to the com- preparation played an important role communities in which they reside get pany’s promise to be “Above all in in meeting the needs of ERIE custom- back on their feet. Service,” ERIE maintains a special ros- ers. Still, Myers gives the most credit Superstorm Sandy was the fifth ter of claims handlers at each of its 17 to the commitment of ERIE’s claims most costly weather event for ERIE. branch offices who can be called upon handlers. “While technology is impor- Even still, the company was able to during catastrophic events. More than tant and we can use it to respond efficiently process more than 36,000 100 claims handlers from other ter- better, it’s our people who go above Sandy-related claims, courtesy of invest- ritories traveled to the affected areas, and beyond who make the difference,” ments in the latest technologies and where they typically worked 15-hour he said. comprehensive advance preparations. days for two weeks or longer. Stepped-up efforts were also in Among the first technologies to Claims handlers faced numerous play at the home office. There, spe- come into play were sophisticated challenges in their efforts to help. cially trained employees from Claims new mapping tools. “These predictive Storm debris and water initially and other departments of the com- modeling tools let us watch the super- blocked many roads, power outages pany helped customer advocates storm’s path and see how it matches that lasted a week or more plagued process a heavy influx of calls. “In the up with where our customers are locat- many areas and temperatures first day after the storm, we took close ed,” explained Matt Myers, senior vice remained chilly. Two other to 10,000 loss reports,” said Myers. president of Corporate Claims at ERIE. complicating factors were Daylight “Some employees were responsible for “Once the storm hit, we could then Saving Time, which set crews back an taking claims over the phone while use mapping software to make orga- hour, and the threat of a nor’easter others called back customers who nized and efficient assignments for our that thankfully never materialized. needed immediate attention.” claims handlers.” When catastrophic weather events The Community Outreach Those predictive modeling tools strike its territories, ERIE regularly Department also kicked into high gear also helped ERIE deploy claims deploys special vehicles known as after the storm struck by facilitating handlers even before the storm hit. Claims Response Units (CRUs). These a $100,000 donation to six American “We carefully tracked the storm and technologically equipped vans serve a Red Cross chapters operating in the

8 most devastated areas within the an added incentive to give back, Erie port from ERIE and ERIE employees. company’s footprint. Branch manag- Insurance sponsors a Matching Gifts This time, there was an added urgency ers from ERIE’s field offices personally program that matches employees’ since so many friends and neighbors presented oversized checks to: donations to qualified nonprofits like in the ERIE footprint were affected.” • American Red Cross of the Greater the American Red Cross dollar for The road to recovery for many Lehigh Valley dollar up to an annual maximum of people and communities is still long. • American Red Cross of $5,000 per employee. Luckily, we can all do our part to Susquehanna Valley Employees were also encouraged make it • American Red Cross of to get involved with the Erie Insurance a little Southeastern Pennsylvania and American Red Cross Volunteer shorter Philadelphia Network, an initiative that currently every • American Red Cross, Washington connects approximately 1,000 ERIE day. n County Maryland Chapter; employees with the volunteer needs of American Red Cross of the local American Red Cross chapters. National Capital Region “ERIE has partnered with the • American Red Cross, Greater New American Red Cross for a very long Bruce Peterson (center), Erie Insurance Hagerstown Claims York Region time, and we know they do good Office, presents a check to Julie ERIE also sent information to work,” said Ann Scott, vice presi- Barr-Strasburg, assistant regional employees about how they could assist dent, Community Outreach at ERIE. executive of the American Red Cross, Washington County Maryland disaster victims via personal dona- “Whenever there’s a catastrophe, Chapter, and Robert Carder, Jr., the tions to the American Red Cross. As there’s always an outpouring of sup- chapter’s chairman of the board. Photos courtesy of ERIE.

9 An Outpouring of Giving

mployees of Fireman’s Fund such camaraderie among employees in ing people in need as I did wearing the Insurance Company were eager difficult times.” Fund’s logo while working Superstorm Eto help after Superstorm Sandy Examples of compassion from busi- Sandy claims,” said Trent Gillette, a devastated the east coast. Within ten nesses and their employees have been general adjuster from Chicago, Illinois. days of the company announcing it widespread. It is the company’s business “One incredible moment was boating would match employee donations to to respond immediately with claims out to Liberty Island to inspect the the American Red Cross up to $10,000, adjusters ready to help displaced policy- damage there and on Ellis Island. I was employees exceeded the match and holders find housing and start the repair able to help a man whose family busi- Fireman’s Fund and its employees process. The claims adjusters leave their ness, which has been on Liberty Island together donated over $25,000. families and forgo holidays and week- for over 81 years, was devastated. I was The lives of so many employees on ends for long periods of time after such able to reassure him and leave him with the east coast were impacted with losses an event as Sandy. a sense of security because he was deal- of homes and power outages that this The whole company chipped in ing with an insurance company that spurred an outpouring of giving from to backfill and finds ways to help. has stood the test of time for 150 years all across the company. Partnering with Displaced employees spent nights at like the Statute of Liberty has. That was The American Red Cross only makes the office when their power was out probably the most moving claim I have sense since they are out there on the and displaced agent offices were offered handled in my entire career.” front lines after natural disasters. space in Fireman’s Fund buildings. “It’s An agent commented on how “There are so many ways to help what we do,” said Fouché, “we are in proud he was of his affiliation with after such a severe catastrophe,” said the business of restoring people’s lives Fireman’s Fund. The proactive call-out Lori Fouché, CEO of Fireman’s Fund. back to normal as soon as possible.” efforts were impressive. Letting the poli- “Employees gave donations, helped “In almost 25 years of field claims cyholders know that claims adjusters with workloads of impacted offices and adjusting, I have never had a moment were in the area through social media reached out personally to victims and that has made me feel so satisfied help- and text messages and providing mobile their families. It is heartwarming to see

Claims Adjuster Suzanne Atkins inspects the total destruction of homes after Superstorm Sandy. Photos: Mike McLaughlin Photography.

10 apps helped them tremendously. He equipment and train- also shared some feedback from one of ing equipment were his clients. “The policyholder said his all purchased with Fireman’s Fund Claims Professional was these grants. Since amazing, very patient, empathetic and 2004 Fireman’s Fund that he went the extra mile to make has awarded grants him feel a sense of normalcy. At the through agents and closing of my call with the client he brokers in the tri state had tears of happiness.” area totaling more than Fireman’s Fund awarded many 3.5 million dollars. The grants to affected fire departments Easton Volunteer Fire in the tri-state area. Agents and bro- Company in Easton, kers were thrilled to award the grants Connecticut, lost one which included $10,000 to Point of their volunteers, Russ Neary, while Breeze Volunteer Fire Department, responding during Superstorm Sandy. Fireman’s Fund General Adjuster, $9,000 to Mantoloking Fire Company, The grant in his memory for commu- Trent Gillette, worked claims in Union Beach, New Jersey, $2,500 to FDNY, $5,000 to the Easton nications equipment was a tribute to Liberty Island and Ellis Island. Volunteer Fire Company, and more. his dedication to the community and Thermal imaging cameras, forcible the communications project that was entry simulators, communications near and dear to him. n

11 Mobilizing for Superstorm Sandy oon after Superstorm Sandy associates have a lot of experience goods for Sandy victims. struck the Northeast, GEICO, when it comes to handling catastro- When employees learned that some Sthe largest auto insurer in New phes. They’re extremely nimble. We of their GEICO colleagues in New York York and New Jersey, was on the move. were able to move people right into and New Jersey were personally affected The company quickly began mov- troubled areas and set up appointments by the ordeal, GEICO associates opened ing in 350 company field adjusters, for them so they could complete the a Sandy Relief Fund for their friends and worked with its salvage vendor and its paperwork and issue checks to poli- neighbors, even when those “neigh- own towing network to relocate 32,000 cyholders almost immediately. Then bors” were thousands of miles away. flooded cars, established a strong pres- these same associates moved on to the “We certainly would never want ence throughout the five boroughs next area and the next.” our customers to ever go through that and plugged in some 2,000 associates While the rugged pace continued again,” said John Pham, GEICO’s vice around the country to assist with loss on the frontlines for days, hundreds of president for New York operations. reports, claims and salvage operations. GEICO associates around the country “What it did show us, however, is that By the end, GEICO had handled close also took on critical support activities. we could react fast under the most to 47,000 claims. In Virginia and Georgia, they packed difficult circumstances and bring our In addition, GEICO associates up emergency supplies and sent trucks policyholders some sense of relief. became very adept at managing gas rolling to the stricken areas in the “I think we demonstrated by shortages, handling cell phone outages north. There, other GEICO associates being on the scene so quickly and and wading through flooded streets in went door-to-door to shelters and gas handling losses so professionally that hip deep currents. stations passing out items like flash- we had a sincere interest in how our “This is what we do,” said Bill lights, hand-warmers and water to customers were doing following the DeGrocco, assistant vice president of grateful residents. GEICO associates storm. And we could tell people really GEICO’s auto damage operations. “Our in other parts of the country collected appreciated that.” n clothing, pet supplies and household

Below: A GEICO adjuster helped calm down one policyholder’s 6-year-old boy by letting him draw a goodbye note on the family’s flooded vehicle. Right: Supplies for Superstorm Sandy victims were sorted and shipped quickly to GEICO policyholders along the Atlantic Coast. Photos courtesy of GEICO.

12 In the Line of Claims Duty

fter Storm Sandy slammed 24 response to the needs of customers. Holmes. states in October 2012, The Within days of that first visit, Kenney Lewis described the claims process AHartford made a $250,000 prepared an estimate for payment on as a “very moving experience” for her contribution to the American Red the roof repair and handed the case compared to people who have still not Cross disaster relief efforts. But The over to David Moses, a Connecticut- heard from their insurance companies. Hartford’s claims teams did the heavy based general adjuster. She went on to say that the service she lifting, responding to thousands of “The customer has been very received has been wonderful, prompt customers in the wake of the storm. pleased with The Hartford and how and has operated like clockwork. “I Claims teammates went above and quickly we’ve helped resolve his have been awed every step of the way, beyond in this time of need to exceed issues,” said Moses. “I was actually able because everything that was said was customers’ expectations. to process the payment for the roof actually done, above and beyond my Since Storm Sandy tore the roof repair before I was technically assigned expectations.” With all of the devasta- off the Nuovo Pasta production build- to the case.” tion in her borough, Lewis said The ing in Stratford, Connecticut, owner In December 2012, The Hartford Hartford provided sunshine during a Carl Zuanelli has been impressed with CEO Liam McGee toured the newly very dark period of time. n the timely claim response from The repaired facility and Hartford. learned more about Soon after receipt of the Nuovo the impact of Sandy Pasta claim, Mike Kenney, an associ- on this business. The ate general adjuster from Phoenix, first thing Zuanelli Arizona, was up on the roof inspect- said to McGee was ing the damage. Kenney was one of a how impressed he was number of adjusters from around the with The Hartford’s country deployed to the East Coast to handling of his claim. help deal with the significant volume Outside Claims of Sandy claims and ensure quick Representative Tim Johnson and Team Leader Daryl Holmes were each The Hartford CEO Liam McGee with complimented by Carl Zuanelli (left), owner of Nuovo personal lines cus- Pasta Production, and David Moses tomer Bernice Lewis, he Hartford announced it will make a (right), general adjuster. whose Staten Island, T$10,000 contribution to the Boston One Fund to assist the families of the New York home victims who were killed and the victims was damaged by the who were most seriously injured as a result storm. Lewis left a of the Boston Marathon bombings on April voicemail for Matt 15 and related events on April 18 and 19. The company will also make a $10,000 Monahan, assistant contribution to the West, Texas Disaster vice president of the Relief Efforts Fund to benefit the victims and catastrophe claims relief efforts of the West, Texas Fertilizer Plant explosion that occurred on April 17. operation, prais- ing Johnson and Photo courtesy of The Hartford.

13 Rising to the Occasion

ith Superstorm Sandy “We believe that every claim bearing down on the is a moment of truth for our com- WNortheast, The Hanover’s pany, when we have to be ready to people braced for the worst— both deliver on our promises,” said Mark as insurance professionals and area Welzenbach, senior vice president and residents. Several days before the giant chief claims officer for The Hanover. storm would hit, they sprang into “In the case of Sandy, we called action, demonstrating the experience, ‘all hands on deck’ and our people determination and responsiveness that responded, managing a barrage of have distinguished the company for claims that more than doubled our more than 160 years. typical intake while, at the same time, Ultimately, the storm would be improving on our typically excellent the second most costly natural catas- service scores.” trophe event for the insurance industry To facilitate an efficient response and for The Hanover — second only and ensure a positive customer to Hurricane Katrina. Since 1852, The experience, The Hanover took a multi- Hanover has helped businesses and faceted approach. A “fast track” team homeowners recover from some of the managed routine claims by phone, nation’s worst disasters, including the which often were resolved in a single Great Chicago Fire, the San Francisco call. A special inquiry call center earthquake and Hurricane Katrina. was established to answer customer And, Sandy would prove to be one of questions. Another team proactively the biggest tests of all. reached out to policyholders in heav- Sandy’s brute force resulted in ily affected areas who had not yet filed a wide range of claims, including claims, to see if they had experienced structural damages to homes and com- losses and needed help. Still another mercial properties, losses due to power team focused exclusively on auto interruption, and water damage due to losses, helping policyholders obtain rain or backup of sewers. In addition, documents needed to resolve losses Photos courtesy of The Hanover. Sandy also caused an unusually high on totaled vehicles, and working to number of auto losses. The company’s remove cars as quickly as possible from U.S.-based operations already have areas where access was still difficult at some Hanover adjusters waited in paid Sandy-related benefits of approxi- best. line for hours to fill their gas tanks in mately $160 million. On the ground, The Hanover’s neighboring states before driving into Before Sandy made landfall, The claim adjusters worked creatively to the hardest hit regions. They logged Hanover mobilized its dedicated overcome the many logistical prob- long hours and made many personal catastrophe team, as well various cross- lems, which included a lack of water sacrifices to get the job done. functional teams specially trained and and electric service, and countless In one such moment of truth, in prepared to respond to the exception- road closings that limited access to Mullica Hills, New Jersey, Sandy sent ally high volume of anticipated claims impacted areas. With gasoline ration- an 80-foot tall tree crashing through in a fast and productive manner. ing in effect throughout New Jersey, the roof of the Schanne family home.

14 Hanover volunteers rebuild after Sandy. Thomas Schanne worried as he called promises in its business, Sandy also The Hanover the next day. “I was a new inspired The Hanover and its people customer,” he said. “They had only to build on their proud tradition Cross leveraged The Hanover’s grant received one premium payment from of making a difference in the com- to help provide shelter, supplies and me. I didn’t know what to expect.” munities where they live and work. referral services to victims of the Within 48 hours, The Hanover Immediately following Sandy, the storm. had arranged to remove the felled company made a special charitable Lisa Piehler, regional chief execu- trees, and within a week, the damage contribution to the American Red tive officer of the American Red Cross to his home was repaired. Cross, just as it has following other of Central and Western Massachusetts, In addition to delivering on its major natural disasters. The Red said The Hanover’s generous dona-

15 tion “helped families start over in a heavily damaged new place to live, clean out mold from by Sandy’s flood their water-logged homes and get the waters. Other emotional and financial support they Hanover employ- needed to put their lives back together. ees worked rakes Their contributions provided shelter, and shovels to food, water and supplies right after the help beautify a storm, and funded boxes of food that residential neigh- were delivered to people in need, and borhood and, in are still helping people recover,” said the process, help Piehler. restore a sense On Staten Island, New York, of order and which bore the brunt of Sandy’s pride among its fury, Hanover field and home office residents. Still others volunteered at employees’ responsiveness — in our employees came together to help. a local call center, reaching out to business and in our home communi- Working in teams, they supported a affected families to help assess their ties — is one of the things that makes variety of relief efforts. One team vol- ongoing needs. ours such a special company.” n unteered its labor in a warehouse set “This is a company whose up by a local non-profit organization employees each year raise more than to provide groceries, cleaning supplies, one million dollars to aid United Way, Above: Hanover adjusters baby items, pet food and free demoli- and our response to Superstorm Sandy help policyholders recover. Below: Hanover employees tion services to local residents. is consistent with that deep level volunteered through Guyon Another Hanover team vol- of commitment and concern,” said Rescue to help the families unteered to do home repair work, Jennifer Luisa, assistant vice president, of Staten Island affected by helping to remodel a home that was corporate community relations. “Our Super Storm Sandy.

16 Using Building Science to Help Guide Critical Aspects of Post-Sandy Recovery

ince Sandy roared ashore in on property. Conducting research to protection techniques are cost-effec- October 2012, the Insurance identify stronger, safer construction tive, particularly when measured SInstitute for Business & Home practices that will help reduce prop- against the terrible human losses and Safety (IBHS) has been working to pro- erty damage related to natural and financial costs of heavily damaged or vide technical guidance and insights manmade catastrophes is the focus of destroyed homes and businesses.” based on the latest building science the unique IBHS Research Center in With regard to repairing and to help individuals in the Northeast South Carolina. The Institute uses rebuilding, the Institute is working to rebuild, repair and retrofit to cre- results obtained from realistic, full- focus residents in Sandy-affected areas ate stronger, safer communities. The scale research testing conducted at on four key questions, providing spe- Institute has worked with public poli- the facility to develop clear guidelines cific guidance about how to address cymakers, media outlets, grassroots for the design, construction, repair- each of these areas: organizations, insurance organizations ing and retrofitting of residential and 1) Is the roof strong enough? IBHS and others to share valuable infor- commercial structures, so they can research found that the use of certain mation about post-Sandy recovery. better withstand the effects of high fasteners, including 6d common nails Additionally, the Institute has par- winds and wind-driven rain, in addi- and staples, will not provide adequate ticipated in discussions with thought tion to other hazards, such as wildfire attachment during high winds regard- leaders in New Jersey and New York, ember storms and hailstorms. less of the spacing. These fasteners are who have been tasked with incor- In the case of Sandy, IBHS’ build- inadequate to keep a roof from lifting porating disaster resilience into the ing science expertise is relevant to up during high winds. This is par- recovery process. three parts of the recovery process: ticularly true along trusses and rafters “While everyone is anxious to repairing and rebuilding; business in the middle of the roof sheathing get back into their homes or resume recovery and continuity planning; and panels, where it has been common business operations as quickly as pos- the role of building codes in creating a practice to space fasteners 12 inches sible, it is imperative that people also resilient environment. focus on how to prevent damage and “We need to destruction from the next big storm — think of buildings because, unfortunately, there will be as systems and take another one,” said Julie Rochman, IBHS a holistic approach president and CEO. “Strengthening toward repairing and buildings now will help ensure proper- rebuilding. It only ties are better able to withstand the takes one weak link next extreme weather event.” in the system for an Although the Northeast was most entire building to recently hit by Irene and Sandy, both fail,” Rochman said. of which were largely flooding events, “Fortunately, some of such storms are often accompanied by the most beneficial high winds, which also wreak havoc and valuable property

17 apart. To strengthen an existing roof wipe out homes built at or below the and New York have a unique oppor- when re-roofing, IBHS recommends minimum National Flood Insurance tunity to get it right by repairing and adding 8d ring shank at 6 inches on Program requirements. There essen- rebuilding their communities to be center. Re-nailing the roof deck will tially is no safety factor for homes in more resilient the next time Mother increase the strength of the roof and surge-prone areas other than addi- Nature strikes.” will add no more than a few hun- tional height. Once a home has been One key to strengthening new dred dollars to the cost for a typical elevated on properly anchored piles, structures involves enactment and 2,000-square-foot home. Learn more it is likely that the incremental costs enforcement of strong building codes. about creating a stronger roof at disas- of raising the structure a few more In its paper, Status of Building Codes in tersafety.org/roofs. feet would not be that significant. New Jersey and New York: The Future of 2) Are the structural elements of IBHS recommends homes be elevated Resilience in a Post-Sandy Environment, the building tied together properly, an additional three feet above BFE. IBHS examined current building codes so that it can stand up to extreme It is critical that home foundation and standards in New York and New winds? When building a new home design follow the American Society Jersey, and provided critical informa- or when remodeling an existing prop- of Civil Engineers (ASCE) 24 require- tion and recommendations to help erty includes re-roofing and replacing ments, with a proper accounting for increase resilience against future siding, take the time to add straps wind, surge and debris loading. Special storms. between the roof trusses and tops of inspections of the foundation systems When Hurricane Katrina ravaged the walls, connect the inter-story walls also should be mandated in coastal Louisiana and Mississippi, it exposed and strap the bottoms of the walls to surge areas. the woefully inadequate building the foundation. This creates a continu- One cautionary note — it is vir- codes in those states. New Jersey’s ous line of protection that will help tually impossible to guarantee that building codes, on the other hand, the property perform much better a structure will not be destroyed if it already provide a solid foundation on during high winds and will help offer is directly impacted by the eyewall which to stand. The good work New better protection against lower level of a major hurricane. Experience has Jersey has done establishing strong tornadoes. shown that certain types of property, building standards resulted in the 3) Are doors and windows protect- such as barrier islands and peninsulas, state receiving 93 out of a possible ed? One of the best ways to prepare can literally be cut in two by a hurri- 100 points in IBHS’ 2011 study for hurricanes is to choose permanent cane. Anything in such a storm’s path of building codes in hurricane-prone protection for the openings in your certainly will be devastated, regardless states along the Gulf and Atlantic home or business by installing shut- of foundation type or elevation. coasts. ters. It should be your top priority. IBHS has encouraged both New “Unfortunately, many of the Watch the IBHS Research Center test Jersey and New York to focus on homes and businesses that Sandy video to see how a door blowing open breaking the cycle of destruction as damaged and destroyed along the can compromise the structural integri- they move forward with recovery Jersey Shore were older buildings that ty of a house. The IBHS Shutter Guide plans, and provides specific guidance were not in compliance with current is intended to help homeowners by in Rebuilding and Repairing Safer and codes,” explained Rochman. “This is offering a comprehensive list of shut- Stronger Post-Sandy. why it is so important to use strong ter materials, cost estimates and pros “In general, the traditional path building standards when repairing and and cons to consider when choosing in this country has been to allow retrofitting existing buildings.” the right type of protection. residents and businesses to repair Taking the next step to rebuild 4) Is the building properly elevat- and rebuild in the same places and better in New Jersey will require train- ed to avoid flooding? Most elevated in the same ways,” Rochman said. ing in proper construction practices coastal homes are wood frame struc- “However,” she added, “this approach and building techniques for optimal tures, and the evidence is clear that it does little to advance the safety and disaster resistance, and providing safe- only takes a few feet of water above security of homes, businesses and fam- guards to ensure improvements are the Base Flood Elevation (BFE) to ilies in vulnerable areas. New Jersey made. This is the most effective path

18 Six months after Superstorm Sandy, a destroyed home sits on the beach in Mantoloking, New Jersey. Photo courtesy of I.I.I. for breaking the cycle of destruction, and outline how to embrace these Sandy is on track to be among Rochman said. lessons to ensure buildings and opera- the top three costliest storms in U.S. In New York, there may be more tions are better prepared to withstand history, according to the Insurance work to be done on codes. According the next major storm. Information Institute. IBHS has offered to the IBHS building code study, New “One in four businesses that is its building science expertise to the York scored 60 out of 100 possible forced to close because of a disaster states that were hard-hit by Sandy points. While the state has adopted never re-opens. Recognizing the urgent in an effort to shore up at least part the 2006 International Residential need to provide guidance for small of the built environment before the Code and requires mandatory enforce- businesses before the next storm hits, next major storm hits. The Institute’s ment, New York City is exempt from the Institute issued Mitigation Lessons work there continues even as the 2013 the state requirements and has its own from Sandy: How to Protect Your Business Hurricane Season began on June 1. code, which is not as strong. Despite from the Next Storm,” said IBHS Business For more information about the metropolitan area’s hurricane risk, Resiliency Manager Gail Moraton. “By IBHS Post-Sandy recovery efforts the Institute found New York City has taking the right steps, even the smallest and proven ways to prevent disaster- weakened several important wind pro- business owner can stay open or re- related property losses, please visit tections that are in the state code. At open quickly after a disaster.” www.disastersafety.org. n the state level, other wind provisions have been weakened, which is another source of concern. IBHS has been con- Find additional details about IBHS’s focus on repairing and sulting with policymakers in the state rebuilding, business continuity and codes post-Sandy at: about different ways to improve their • http://tiny.cc/RebuildAfterSandy current standards. • http://tiny.cc/BuildingCodesNYNJ • http://tiny.cc/LessonsfromSandy The widespread damage to the Watch video of the IBHS Research Center wind test to see how small business community from Sandy a door blowing open can compromise the structural integrity prompted the Institute to review busi- of a house, visit: http://vimeo.com/17764719 ness protection lessons from the storm

19 Superstorm Sandy — Record Claims; Record Response

he numbers related to Personal and Commercial customers were hungry, tired and weary, Liberty Superstorm Sandy, when with highly complex claims, Liberty Mutual also delivered thousands of free Tviewed in isolation, are daunt- Mutual partnered with renowned meals in New York — a first-ever effort ing — Liberty Mutual Insurance Group mediator Kenneth Feinberg to offer for the company. experienced a single-storm record of an Alternative Dispute Resolution “Responding to the devastation 100,000 claims, impacting net income program — helping customers avoid a of Superstorm Sandy, we once again by $576 million. Within days, nearly potentially long legal process. demonstrated that, when things are at 18,000 Liberty employees — 36 percent In addition to the company’s their worst, we are at our best,” said of its global workforce — were focused focus on helping customers recover, President and CEO David Long. Before, during and after the storm, Commercial Claims senior managers hosted several conference calls with agents and brokers to discuss commu- nication procedures, claims volumes and Liberty Mutual goals with respect to key metrics, such as inspections completed. The first call — attended by 200 to 250 people — also outlined how Liberty would assign 75 percent of its employees to Sandy recovery efforts, its largest Commercial Insurance nation- wide claims mobilization. Another key communication to agents and brokers focused on the methods of routing claims. Traditionally, claims are faxed — which could lead to delays during a catastrophe. The company devised a

Photos courtesy of Liberty Mutual Insurance Group. new plan — directing agents to the Ten days after a tree crashed into the home of Liberty Mutual policy- company’s call centers and staffing up holder Andy Zevon, he received a new roof. significantly to handle the volume. “If an agent had 20 claims, we’d on helping policyholders recover. the Liberty Mutual Foundation take every claim in one phone call,” By leveraging its scale, commu- made a $250,000 contribution to the said James Wheeler, vice president, nicating frequently with customers American Red Cross and announced Commercial Insurance Property Field and adapting quickly to feedback plans to match employee donations. Claims. That, in turn, ensured the from the field, the company was By December 3, Liberty employees adjuster could get the claim quickly. able to deliver exceptional service, had given nearly $72,000, leading to And, knowing that obtaining fuel despite the extreme claims volume. another $80,000 donation by Liberty for adjusters could be a significant And, for the small percentage of Mutual. And, realizing that customers issue, in the days before Sandy, Liberty

20 Mutual partnered with fuel companies During Sandy, “We were receiving a the delivery of 9,000 meals in just and obtained fuel trucks to keep field steady influx of information and feed- three days. staff on the road. back from customers, and we needed “The stories we heard from For the company’s Personal to fix any workflow process issues people in Rockaway were heart- Insurance operation — which includes early on,” explained Kristen Madzik, a wrenching,” said Mike LaBerge, the Liberty Mutual and Safeco brands senior property loss specialist. Madzik manager of Personal Insurance — Superstorm Sandy brought its and other Continuous Improvement Marketing Operations. “Many people highest single-event claim volume “coaches” spoke to adjusters and lis- had lost everything they own.” ever, leading to the deployment of its tened to their calls throughout the While the delivery of the meals 7,800-person Claims team. Hundreds aftermath to find out what they need- was just one small piece of the overall of adjusters flew into the region ed, prioritizing these needs. Thanks to relief effort, it reminded employees from around the country, while the these efforts, Property Claims imple- of the company’s commitment to Catastrophe Response Vehicles arrived mented 60 suggestions made during improving the communities it services. in high-impact areas, giving customers the storm — and in some cases, over- “To see firsthand the destruction the opportunity to speak face-to- night. that the weather can cause reminds face with representatives, start the Andy Zevon of Lawrence you of the great work we do as a claims process and get their questions Township, New Jersey, was one policy- company every day to help people in answered. holder affected by Sandy, when a tree crisis,” says Gary Bennett, area man- Personal Insurance’s new Field crashed into his home and destroyed ager. “It not only makes you grateful Resource Management team (FRM), his roof and attic. “Thanks to Liberty for what you have, but it helps renew also worked to address a common Mutual Insurance, we had a new roof your commitment to help others, as and critical issue when a catastrophe within ten days,” Zevon said. we say, live safer, more secure lives.” n hits — local offices can quickly reach A simple gesture announced via their limit with available resources, social media — that the company causing delays. The team mobilized to would be sending free food trucks to quickly triage each claim based on its several New York locations — led to location and severity, while assigning an adjuster drawn from a database of Liberty staff adjusters nationwide. Liberty Mutual adjuster Paula The company also committed Pelletier meets with a customer itself to continuous improvement shortly after Superstorm Sandy. — even in the aftermath of a storm.

Lahey, manager of Employee Helping Boston Recover Relations and HR Services for Liberty Mutual. The company Immediately after learning of the tragic Boston provided EAP staff onsite for two Marathon bombings, Liberty Mutual Insurance’s weeks, as well as counseling ser- Emergency Response Team was activated to assess vices through a toll-free number. the situation and determine if employees were Shortly after the terrible tragedy, the company also injured. announced it would contribute $1 million to the One Liberty Mutual offices, located in Boston’s Back Bay, Fund Boston to help the many people affected by the were closed due to the Patriot’s Day holiday which events. greatly diminished employee presence in the area. In announcing the donation, President and CEO However, a few employees were in the near vicinity of David Long said, “We are honored to support the many the blasts and were injured — but none seriously. victims of this tragedy; and we are proud to stand by “Employee safety is always our first priority — both our beloved city.” determining their status and offering access to coun- In tribute to the people killed or wounded by the seling and other services through the company’s blasts, employees across Liberty also participated in a Employee Assistance Program (EAP),” said Christine moment of silence exactly one week after the tragedy.

21 Tried and True Catastrophe Plans Led to Successful Storm Response

n the days following Superstorm though their homes and offices were Two catastrophe response units were Sandy, Nationwide Agent Ron Keats without power. deployed to Long Island and at the Isaid donations started pouring in to “I was shocked how quickly every- request of Harleysville Claims lead- his Floral Park, New York, office after one came together to help,” Keats said. ership, another response unit was he put a message out on Yammer — an “I’m really thankful for the generosity deployed to New Jersey to assist internal Twitter-like feed — mention- of my fellow agents and how quickly Harleysville Insurance, the newest ing his clients’ needs for blankets and Nationwide’s catastrophe response member of the Nationwide family of flashlights on Long Island. kicked in.” companies. “I got calls from agents all over The days leading up to Super “Nationwide’s catastrophe response the country. Hundreds of flashlights, Storm Sandy were critical for units were among the first on Long blankets, batteries and even food items Nationwide’s catastrophe response Island, two weeks before New York set came to my office. I was absolutely team. Associates worked 12-hour days, up the “insurance village,” said Bob amazed by the response,” Keats said. seven days a week, so they could hit McCafferty, associate director of claims One agent even called to say the ground running after the storm hit. in Nationwide’s Northeastern Region. she was driving up to Long Island Hotel rooms were booked before About 400 associates and retirees with gasoline and a generator so his the storm made landfall and catas- volunteered to help in Nationwide’s office staff could continue working trophe response units hit the road. call centers so policyholders could report their claims. In the week following the storm, Nationwide pre- emptively contacted members using automated calls to provide those in heavily affected areas with key contact information in case they needed help from Nationwide.

Regional Nationwide associates dispatched loaded trucks with bottled water to distribute in some of the hardest hit areas. Photos courtesy of Nationwide.

22 Bottom: Nationwide associates in their Floral Park, New York, office “Our first concern is getting in with donated food and supplies. The items were donated to area food banks. touch with our policyholders,” said McCafferty. “We want our custom- ers to know that we’ve received their claim and are there to help them.” Daily teleconferences kept every- one on the same page and allowed the organization to adapt quickly to the changes. “When you have 400 adjust- ers out in the field, it’s important to have them all rowing in the same direction, so to speak,” said McCafferty. Nationwide Agent Steve Cali, owner of Cali Associates in Lindenhurst, New York, said custom- ers were pleased with Nationwide’s Continued on page 32

23 Meeting Sandy’s Challenge

he morning after Hurricane agents’ offices. Claims employees sation bill reviewer in Selective’s Sandy made landfall, as fanned out to visit customers in Mid-Atlantic Region office, organized a Tstunned homeowners and stricken areas and help resolve claims. collection for clothes and other house- business owners tried to wrap their One such employee was Kim Levitt, a hold items to take to Staten Island, minds around the damage to their senior learning management specialist New York, where Babin’s aunt lived. properties, employees throughout in Insurance Learning Services and for- “We took a full-size pick-up, my SUV, Selective Insurance Company of mer claims management specialist. She and my dad’s van pulling a U-haul America rose to the occasion. Though was about two months into her new trailer (all fully loaded) to three differ- the Branchville office was closed and role when Hurricane Sandy struck. The ent drop-off sites in the badly hit areas New Jersey was in a state of emer- former claims management specialist of Staten Island,” said Babin. gency, nearly 100 employees came to didn’t hesitate. “I raised my hand and Bonnie Kikkert, vice president, work so they could help keep the busi- volunteered to do claims,” said Levitt. Claims Automation & Strategic ness running and assist storm victims. For 10 days, Levitt was out in Projects, organized a drive in the com- Facing the challenge of handling Monmouth County, New Jersey, pany’s corporate office in Branchville, nearly 19,000 claims, Selective’s Flood inspecting losses and handing out New Jersey to collect new and gently team worked tirelessly after the storm, checks “to get people back on their used clothing for the New Jersey Shore resolving claims and informing cus- feet.” They were long days, she said, victims of Hurricane Sandy. Selective’s tomers of the federally mandated but other CMSs were working equally donations were among the 540 boxes National Flood Insurance Program’s hard. delivered directly to local police and claims process. Commercial lines The field work was followed by a fire departments in affected shore received about 5,000 claims related two-week stint in the Claims Service areas. to Sandy and Personal lines received Center and two weeks in an account- Port Chester, New York volunteer about 8,000 claims. ing firm’s office in North Carolina. She firefighter Ed Quinn, senior safety spe- Customer Service Specialist Debbie then returned to the Service Center for cialist from the company’s Northeast Papanestor was among many employ- another week. In all, Levitt was away Region, saw it all during and after ees who volunteered to take calls from from home and family for five straight Hurricane Sandy’s landfall — fires, Flood customers. “We talk to custom- weeks. She shrugged off the personal roofs torn off, trees and wires down, ers every day, but Sandy put it all into sacrifice. “When I was in Monmouth partial and total building collapses. perspective — what insurance is really County,” said Levitt, “I saw how “We had 160 calls in those first five about. It was just a great feeling to be gratifying it was to help people in days. We were constantly out there, able to help out,” said Papenestor. need. There were people who had lost checking to make sure nobody was In all, employees who didn’t everything and you were making a inside fallen buildings, getting people normally work in Flood or Claims difference by writing a check on the out of physical danger, securing struc- spent 1,345 hours taking calls from spot.” tures and putting out fires. The first flood victims. Employees in Selective’s In the days following the hur- three days, I got only 10 hours of regional offices worked more than ricane, many employees also devoted sleep,” said Quinn. 3,000 hours on Sandy claims — the personal time and resources to helping Joann Huff, flood customer ser- equivalent of 375 eight-hour days. victims. They took food and supplies vice representative, organized a drive Selective’s Service Center remained to the affected towns, they cleaned up that brought food and supplies to open 24 hours a day to take claims. neighborhoods and they helped rescue hundreds of storm victims in Breezy To service the crush of claims, strangers. Point, New York, including Huff’s field staff set up mobile units in Kathy Babin, workers compen- sister-in-law’s family. The first week-

24 Photos courtesy of Selective.

Selective’s Bonnie Kikkert loads bags and boxes of clothes donated by employees for New Jersey Shore victims of Hurricane Sandy. Left to right: Eric Braun, Selective’s Joann Huff, Donna Braun and Colleen Egan (Joann’s sister- in-law) delivering supplies to Breezy Point, NY.

end after the storm, Huff’s group took $2,500 worth of cleaning supplies and non-perishable foods to Breezy Point. Three weeks later, they took a vanload The week before Christmas, her team victims of floods. When they describe of material to Far Rockaway, New delivered over 500 toys to Toms River, their losses, “you hear it, but you York and, two weeks after that, they New Jersey. don’t truly understand until you see rented a truck and delivered $1,200 As a Flood customer service rep- it. What we saw was hard to believe. worth of toys to a fire station there. resentative, Huff often speaks with It was really an eyeopener.” n

25 Sandy: Helping Customers Recover from the Unexpected

andy started swirling in out power to millions, destroyed Don Dicus and Mobile Assist Claim the Western Caribbean on thousands of homes and cars along Representative Chris Lafaso worked SOctober 22 and was quickly the New Jersey, New York and together to assist a customer whose upgraded to Hurricane status by the Connecticut coasts, flooded lower home sustained extensive wind and National Hurricane Center on October Manhattan and uprooted trees from water damage. The customer was with- 24. It was weeks and months before Maryland to Maine. out electric and heat and was doing then that State Farm began prepar- As the catastrophe team made his best to care for his terminally ill ing for what would become the most their way to the most severely affected wife who was bedridden with a feed- destructive storm of the 2012 Atlantic areas, local associates and State Farm ing tube. hurricane season. agents — most of them having suf- The customer was issued an “The State Farm catastrophe team fered damage to their own homes and advance to assist with immediate is always prepared. We prepare all year having no power — were the first ones expenses, but declined an offer to be long for any kind of weather, severe on the ground helping customers. relocated to temporary living arrange- thunderstorms, tornados, hail and “Locally, we have claim rep- ments. Due to his wife’s illness, the hurricanes,” said Nicholas Depola, resentatives making contact with customer preferred to keep her at Catastrophe Claims Team Manager. customers,” said Depola. “In addition home where she most comfortable. “We’re always reviewing our catastro- to providing claim information and Claim Rep Lafaso searched for an phe plans from past storms to see how setting claim expectations, they give Emergency Service vendor and found we can improve for the next one.” customers things they can do before one, who within a half hour had a As with all hurricane situations, an adjuster can get to them. We also generator to restore some electric and State Farm’s catastrophe team stayed have local regional emergency adjuster heat at the customer’s home. When in close contact with the National catastrophe teams, who look at the Claim Rep Lafaso called to speak to Weather Service as Sandy moved most severe claims first.” the customer, he tearfully expressed north, eventually making landfall on In Wall Township, New Jersey, his gratitude. the New Jersey coast. Sandy knocked Complex Fire Claim Representative Throughout New York, New Jersey Photos courtesy of State Farm.

26 and Connecticut State Farm agents tors for other agents to use.” by Matt Lauer, on Friday, November were doing their best to help custom- State Farm agents were also pres- 2 at NBC’s New York City Rockefeller ers, while also personally dealing with ent at the Nassau County Mega Sandy Plaza studios, State Farm commit- the aftermath of Sandy. Most of Long Recovery Center at Cedar Creek Park ted an additional $500,000 to the Island was without power for more in Seaford, New York starting on American Red Cross to benefit the than a week after Sandy. State Farm November 10, 2012. In addition to victims of Sandy. agents posted important informa- agents, claims professionals and Public On 12.12.12 State Farm was a tion for customers on the windows of Affairs were on-site to provide service Platinum sponsor of the fundrais- their offices including the locations of to customers and others in the com- ing concert held at Madison Square local shelters, recommended vendors, munity who were impacted by Sandy. Garden, in which all proceeds went 1-800-SFClaim to report a claim, and “Our tables were set up with clean- to the Robin Hood Relief Fund. Robin how else they could be reached. ing supplies, groceries and clothes to Hood, the largest independent pov- “My office was without power help those in need. Through the rain erty fighting organization in the New for a week, but the office was open. A and cold State Farm was there to listen York Area, made sure all monies raised lot of my customers were without a to everyone who stopped by our loca- during the concert went to non-profit home, so we helped people find places tion. Most people wanted to know that groups specifically helping people to stay,” said Baldwin-based Long we cared and we were happy to listen. throughout the tri-state area affected Island State Farm agent Marty Connor. It felt good to be there for our com- by Sandy. “If I didn’t hear from my customers, I munity,” said Naomi Johnson, State “State Farm’s top priority in reached out to them to see how they Farm New York Community Specialist. catastrophes is to help our custom- were doing and offered whatever help “I remember a young married couple, ers recover from the unexpected. I could.” who stopped by with their new baby. Sponsorship of events like the NBC As power was slowly restored, We fortunately had some new baby telethon and 12.12.12 concert was a agents worked together to support clothes that we were able to give them. way to augment our claim response each other and help customers. They lost everything and that small act in the wake of Sandy,” said Tim “Our agent buddy program was of kindness made a world of difference Van Hoof, Assistant Vice President, in place. Agents who had power to them.” Marketing Communications. “It was would allow other agents to come In 2012, State Farm provided a way to express solidarity and sup- and work out of their offices,” said Ed $1 million to the American Red Cross port for those affected by the storm. Borenstein, Long Island State Farm for its disaster relief programs. During It let people in NY and NJ know that Sales Leader. “We even had one agent NBC’s “Hurricane Sandy: Coming State Farm recognized their struggle drive down from Maine with genera- Together” one-hour telethon hosted Continued on page 32

State Farm Catastrophe Services on the ground in New York and New Jersey.

27 Employee Resiliency Proves Fruitful for Customers, Communities

oncerts are rain or Gene Silver pulled together a team With business continuity plans in shine,” says the website to collaborate with LiveNation, the place, the work of 1,500 colleagues in “Cfor Nikon at Jones Beach operators of the Nikon at Jones Beach 12 offices shifted to locations outside Theater. “Barrier Island Beach weather Theater, to deliver the historic venue of the region to ensure their ability is unpredictable.” back to its original condition, all before to meet customer needs. Social media For the Long Island, New York, a rather large and looming deadline: delivered storm preparation advice to premiere summer music venue, rain music fans would be gathering to hear more than 150,000 brokers and cus- and shine were hardly the concern. Rascal Flatts headlining opening week- tomers. Human Resources deadlines It was the 1,100 miles of Superstorm end of Friday, May 31, 2013. for annual training and benefits enroll- Sandy’s winds that left floods and If that deadline was missed, ment were extended so that affected devastation. In particular, it was the the 14,000 capacity crowds would employees could focus on their own storm’s wake which left an entire be understandably disappointed recovery. Emergency communications season of music concerts in jeopardy. and resigned to forgo their summer were updated at least daily and the Months of planning and more than concerts. company intranet was flowing with three months of live performances fea- Having made her mark on the on-going updates of pictures and sto- turing approximately 35 events with Northeast, Superstorm Sandy left noth- ries from the front lines. more than 70 music artists could be ing short of inconvenience. As the “We’re constantly learning from cancelled. By the end of the storm, winter months approached, commu- our preparedness plans,” said ZNA with quiet waters and stillness in the nities were left with slowly receding Chief Claims Officer Steve Hatch. air, the storied facility was submerged flood waters, damaged homes and “We continue to improve over time, under 12 feet of water, including the buildings as well as despaired parks planning for the worst and scaling entire stage area, dressing rooms, and playgrounds. Time was of the back when needed. In the case of lounges and several hundred feet essence and for Zurich colleagues Superstorm Sandy, I think our people of tunnels which housed 10 plastic across the Northeast and the rest of the showed that our plans are work- electrical conduit piping filled with country the post-storm inconvenience ing. What is most impressive is our electrical wiring. was just a fact of life. Their greater employees’ resiliency and their desire The loss was reported on October concern was getting those same com- to be a part of the solution.” 31 to Zurich’s Claims Care Center half- munities back on their feet. The solution Hatch describes way across the country in Colorado The “all-hands on deck” philoso- comes in spite of employee’s personal Springs, Colorado. Within minutes, the phy has been Zurich’s approach to challenges associated with a storm’s Catastrophe Claims team in the com- natural catastrophe responses for some destruction. Power outages from Sandy pany’s North American Headquarters time. But the Sandy response demon- rendered some employees nearly in suburban Chicago was notified. strated that refining the plan over time unable to work, until their creative and Soon after, the claim was transferred was paying off. enduring spirits kicked in. For Specialty to the Large Loss Unit with a potential Leading up to the storm, team Products Healthcare Underwriter valuation of $20 million. It was then members from across the business and Danny Edwards, whose family was that Zurich Claims Team Manager the country stepped up to prepare. directly impacted by the storm, this

28 Employee Resiliency Proves Fruitful for Customers, Communities Photos: Laura Turley.

Above: Zurich team members at the Rockaway, Queens Playground. Left: Zurich colleagues from New York City shovel sand from the Rockaway, Queens playground sidewalk.

Opening that building, however, was not an easy feat. On the morning after the storm, Facilities Management Coordinator Laura Schmidt-Tweeddale meant getting into his car and driv- she could check email. Once the and husband Rob armed themselves ing to a place with strong enough Manhattan office location was oper- with headlamps, camera, water, cell- cell service so he could join team able, Zurich Staff Legal team members phones and the building floor plans calls designed to make sure no work headed back to work, minus heat and and embarked on their journey from fell through the cracks. Marketing hot water, soldiering on throughout Brooklyn. During the four-mile walk, Manager Elizabeth Woods spent hours the day until 3 p.m. when their red they passed many of the same scenes in her car with her Blackberry charg- noses, blue lips and numb fingers unfolding across the region: trees ing from a cigarette lighter, just so could take no more. down, water-marked buildings and

29 neighbors with a “we made it through” across the country wanted to know nership and combine the teams in a look on their faces. Arriving at the how they could help, amid the chaos way that promotes our involvement building, they toured the six Zurich and increased workload. Although the in the decision-making process in real floors and surveyed the damage to employee giving program raised an time and LiveNation were very good understand what it would take to get excess of $134,000, it was the physical collaborators” said Silver, referencing the company’s largest field office back generosity of employees that showed the dozens of team members from in operation. Zurich’s heart. Zurich and its external vendors who “It was a feeling of relief to see Countless hours of support worked furiously to get the theater that our floors had minor damage and flowed from employees as they ral- ready for the 2013 summer concert could be opened without too much lied themselves and colleagues to season. delay,” said Tweeddale. “At that point, bring life back to the Northeast. In Building evaluations, equipment it was just a matter of helping our team the Chicagoland area, four employ- inventories, environmental protocols determine if, and how, they could get ees volunteered time taking donor for clean-up and restoration processes to the office.” calls during the “CBS Chicago Cares: were just a few of the large tasks Silver While Tweeddale was working to Red Cross Sandy Relief” telethon and team had on their plates. The open the building, Samit Shah, Project on November 20. Out of Sarasota active collaboration and communica- Manager for Zurich Global Life in Springs, New York, four colleagues tion with LiveNation remained open North America, was surveying his own recruited and mobilized a Boy Scout throughout the winter months as the situation for a resolution. From loss of troop and drove five hours with por- teams restored the theater back to nor- power, water, gas and cell phone ser- table grills and food to feed hungry mal and returned the historic venue vice to the relocation of his family to residents and volunteers. Asia-Pacific back to the legion of fans who wanted safer quarters with his cousin, he was team members raised $18,000 for it to happen. inundated with tasks to get back on the American Red Cross in just a few “The process that emerged allowed his feet. short days, showing support for their the work to progress as quickly as the However, it was three days after North American colleagues who had next step was identified,” he said. By the storm that he was implementing offered similar generosity following the end of March, Zurich had present- his American Red Cross ‘Ready When the Tsunami two years before. And, ed numerous checks with one more on the Time Comes’ training to help in a two Fridays after the storm, 88 New the way. “Bulk Feeding” program for local com- York City colleagues hopped on a bus “The support and quick action of munities in Nassau County on Long and traveled to Rockaways, Queens the team to rebuild not only saved the Island. to help clear piles of sand and debris summer season — their only season “The day was filled with unforget- from a local playground. — but also 400 seasonal jobs for ticket table moments, including one with a Zurich employees in the region takers, ushers, stage crew and conces- local resident whose home had been and across the country raised the bar sion crew,” said Dan Riordan, CEO, flooded in a lower floor, but he was on their commitment to customers and Global Corporate in North America. living on an upper floor with several communities, underscoring the deter- “That’s what our commitment to sus- family members,” Samit said. “He told mination and commitment one needs tainable communities is all about.” me that when he came out of this cri- to make it in the industry. The pas- While rebuilding will continue sis, he, too, wanted to volunteer his sion and compassion with which they for some, the inconvenience of North time with the Red Cross and give back delivered resonated with all, helping to America’s second-costliest storm is all he could to help others in need. It rebuild the once fragile expansive area, starting to fade away. In its place was overwhelming to experience the even when it seemed all hope was lost. comes a much happier time during care and compassion generated from Back on Long Island, the past five which a summer-long party on Long helping communities recover from this months have been about rebuilding at Island will celebrate more than disaster.” the Nikon at Jones Beach Theater. America’s love for music. It also Samit’s selfless commitment “In our experiences on losses like honors the hope and commitment to wasn’t an anomaly. Colleagues from this one, it is critical to work in a part- rebuilding that insurance provides. n

30 Tales from the East Coast

t MetLife, customer centricity Beyond a solid grasp on the fun- “You arrived early, took a hands-on is at the heart of everything damentals, however, there are other approach, and thoroughly explained Athe company does, and this factors that contribute to MetLife Auto to my parents what was covered and is especially true during a customer’s & Home’s winning formula: what wasn’t. You patiently answered time of greatest need. There is no • Fully investigate available cov- all of their questions. Finally, we were better example of this than MetLife erage under the insurance contract. very pleased at how quickly the check Auto & Home’s claim handling efforts Although some things are clearly not arrived.” immediately after Super Storm Sandy covered under the standard home- • Never underestimate the use hit the East Coast, wreaking havoc and owner’s contract, such as flooding, of Snoopy as a brand ambassador. interrupting the lives of millions of cit- there’s a lot that is covered. MetLife’s In many cases, especially where the izens, particularly in the New York and claim adjusters make it a point to insured has small children, MetLife’s New Jersey area. Fortunately, MetLife’s review every claim thoroughly to claim adjusters make it a point to Catastrophe Response Team was up to determine what can be considered a arrive at the home inspection with the challenge keeping its promise—to covered loss. “Even in cases where the MetLife’s mascot in tow. “Under stress- be there for its customers damage to the home was clearly the ful situations, just the simple gift of In fact, according to the claim result of flooding conditions, there are a stuffed Snoopy can help break the “report card” issued by the New York other opportunities for coverage—for ice and at least lighten the mood for a Department of Insurance, of the example, the wind could have caused minute or two,” said Bowen. 20,000 claims received by MetLife in damage to the roof, or there may be a How much of an impact can such New York State, the claim manage- food spoilage claim,” explains Bowen. a little gesture make? “I just checked ment team was able to resolve a claim • Special circumstances require the mail and found your thoughtful — from the date of report to the date special attention. There are a num- gift,” wrote one pleased insured from of payment — in just under ten days. ber of situations where special care is Plainfield, New Jersey, shortly after Just one tenth of one percent of the required, such as when the insured is the loss. “Our son will love it! Your reported claims—covered or not cov- elderly, and the loss of the home isn’t thoughtful attention is exactly the ered—resulted in a complaint. That’s simply inconvenient, it’s potentially reason why we’ve been happy with a number that is far better than most life-threatening. MetLife makes it a MetLife for so long.” other major carriers. point to provide these customers with • It’s the little things that count. “We are proud of the fact that extra special care and attention. Finally, there is no question that the less than one month after Sandy One example of this involves a details can often make the difference touched down, we were able to resolve couple in Oceanside, New York, whose between a routine claim handling 90 percent of the claims reported by adult child was so impressed by the experience and one that really stands our policyholders,” said Tim Bowen, response of the team that he was com- out in the customer’s mind. assistant vice president of claims, who pelled to write to the claim adjuster. For customers in the Breezy Point, has oversight for the Auto & Home “When my elderly parents returned to New York, area — one of the areas Catastrophe Response Team. “That’s a their home days after the storm, their hardest hit by Sandy — the presence of figure worth noting, especially because grief was overwhelming. Their home the MetLife Auto & Home Catastrophe the intent is not simply to close of fifty years, personal belongings and Response Vehicle (CRV) was a welcome claims—it’s to provide each customer cars were flooded and damaged. And sight. Senior Investigator Russell Tellier that called in to report a claim with yet, from the moment I shook your was assigned to help with the opera- a first-class customer experience from hand, my mind was put to ease,” wrote tions at the site and grew to know beginning to end, and to help get their this person, whose parents had a pack- some of the MetLife customers who lives back in order, as best as we can.” age policy with MetLife Auto & Home. Continued on page 32

31 Tales from the East Coast provide these customers with food, “The hard work of our Catastrophe continued from page 31 and in some cases, helped people out Response Team, our agents and the by providing gasoline to help fuel many individuals who were busy stopped by the CRV. their generators. They were just small fulfilling the day-to-day needs of our “We had some MetLife custom- tokens, but I think these families real- employees during this time of crisis ers who made it a point to visit the ly appreciated the gestures.” shows once again that we are there CRV every morning,” said Russell. “I “I am extremely proud of the for our customers when they needed could tell that when I first met several way that MetLife Auto & Home us most. It’s an outstanding example of them that they were exhausted handled this challenging storm,” said of what customer centricity is truly all and hungry. We would routinely Mike Convery, chief claim officer. about.” n

Tried and True from the Nationwide claims teams. one of the proudest moments was continued from page 23 The two groups worked together on to be able to provide needed essen- the forecasting models and planned for tials to people severely impacted by claims response. Nationwide assistance to Harleysville the storm,” said James Kroeber, a “We’ve had a lot of storms, but with extra claims support, media out- Nationwide sales manager who vol- nothing has compared to Superstorm reach and other resources. Nationwide’s unteered at aid stations throughout Sandy,” said Cali. catastrophe response unit was set up Connecticut. Harleysville Insurance, a in New Jersey to further support the The Nationwide Insurance Nationwide company, experienced a Harleysville claims team and its policy- Foundation also donated $300,000 to significant number of claims. Many of holders in the hardest hit areas. the Red Cross Disaster Relief Fund after its commercial and personal lines poli- A rented truck filled with humani- the storm. In total, the Foundation cyholders are located in Pennsylvania, tarian supplies such as blankets, water, donated $1.5 million to the Red Cross New York and New Jersey in some of hand sanitizer and basic toiletries head- in 2012. Additionally, the Foundation the hardest hit areas. ed for the East Coast days before the donated $75,000 to the United Way of “From the moment the storm hit, storm arrived. Once there, Northeastern New York City to assist rebuilding and our claims team worked around the regional associates manned humanitar- long-term recovery efforts. clock, and we called on additional ian aid stations, handing out the needed “Nationwide’s ultimate goal fol- resources throughout the company,” items to storm victims. lowing Superstorm Sandy — and any said John Mannato, vice president and Nationwide agents such as Cali and catastrophe — is to help our customers catastrophe team leader for Harleysville. Keats joined associates going door to get back to normal as quickly as pos- As the landfall models developed door in the hardest hit neighborhoods sible,” said Claims Manager Greg Koch. before the storm reached the east coast, to hand out items and check in on “Our goal is to help our customers Harleysville recognized the potential Nationwide policyholders. in a time of need,” said Koch. “That’s customer impact and sought assistance “In 20-plus years with Nationwide, what we’re here for. n

Recover from the the effects of the storm are still being State Farm also remains commit- Unexpected felt. State Farm continues to work ted to Sandy recovery efforts through continued from page 27 with its customers, having handled funding of its community partners and more than 100,000 fire and more than volunteer efforts of its associates. and admired their courage in the face 16,800 auto claims. “Our goal is to help our custom- of adversity. It also helped our employ- “Six months later, we continue to ers recover from this devastating storm ees and customers in other parts of the receive claims and handle them with while helping support their communi- country rally and show their support.” the same vigor as we did back in late ties as they rebuild,” said Jen Alvarez, Sandy has long gone offshore but October,” said Depola. Public Affairs Field Manager. n

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