Response time matters.
Catastrophe planning is a never-ending activity at FCCI, and it covers much more than the immediate specific response to a catastrophic (CAT) event. FCCI is considered a leader among our peers for our response during catastrophic events. With a clear strategy affirmed in 2018 by the CAT strategy team, the Company is committed to having a strong, tight and refined claims handling response for storm season as well as for any weather-related event. So, what does this strategy involve? Through an in-depth analysis into the claims process, our CAT strategy team built redundancies into both the plan and the team. The CAT team includes 93 teammates from multidisciplinary departments, including Corporate Claims, Risk Control, Underwriting and more. These teammates are cross-trained to support the CAT response. Procedures in the CAT plan have been streamlined with tools, reporting and communication methods for both agents and policyholders. We also added resources and leveraged underwriting tools to better understand exposures pre-event and made those resources easily accessible to agents and policyholders. To sum it up: the revised CAT strategy built on an already highly successful track record, and FCCI’s response to CAT events in 2018 was better than ever. Hurricanes Florence and Michael significantly impacted the number of claims filed during the 2018 storm season. To make matters worse, Florence and Michael hit back-to-back in timing. Hurricane Florence hit the Carolinas in September as a Category 4 storm. In October, Hurricane Michael hit as the strongest storm on record (Category 4) in the Florida Panhandle, impacting Florida, Georgia and the Carolinas. FCCI received 1,245 CAT claims reported from these two storms alone.
Claims Closure Rate after Hurricane Michael in Florida — 2018
From the first report of a claim to the claims professionals who appeared at properties within 24 hours, our CAT teams provided a seamless claims experience to policyholders. Mark Kwiatkowski, FCCI Assistant Vice President, Claims, Southeast and Mid-Atlantic Regions, led the team. “We were meeting with policyholders on-site before other carriers were even on the ground in the impacted areas,” said Kwiatkowski. FCCI’s Risk Control team played a big role in the response efforts through collaboration and partnership. They provided proactive hurricane preparedness measures to agents and policyholders. Policyholders were prompted to move their fleets out of harm’s way to minimize claims. Farm policyholders were reminded to move animals to safer locations. As a result of the many proactive measures taken, policyholders were more prepared, and the FCCI CAT team was ready by the time storm season arrived. By March 15, 2019, the insurance industry had an average closure rate of 43.8% for Florida claims due to Hurricane Michael. FCCI’s closure rate was 90.0%. FCCI demonstrated a 46.2% difference in promptness in comparison to the industry average. Approximately one year after Hurricane Irma, the industry still had more than 10% of these claims outstanding. At the same time, FCCI had only 0.2% of its claims pending. It is clear that FCCI’s claims closure rates demonstrate FCCI’s sixth corporate pillar — Prompt & Fair Claim Service — as a testimony to the strength of the Claims CAT strategy and effective execution of the CAT plan. FCCI teammates handled the 2018 hurricane claims faster and more efficiently than ever before and healthily exceeded industry standards and expectations. For FCCI, it is all about helping policyholders recover and get back to business as soon as possible. We understand that following a catastrophe, for every day, hour and moment a policyholder spends suffering a loss, a quick response time makes all the difference in the world.
FCCI closed Hurricane Michael claims more than two times faster than the industry average.
The FCCI Difference
Response time matters
Satellite image of Hurricane Michael, October 2018
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