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State of Alabama Department of Finance Division of Risk Management Kim Huggins Claims Manager
State of AlabamaDepartment of Finance
State of AlabamaDepartment of Finance
Division of Risk Management
Kim Huggins
Claims Manager
ALABAMA
April 27, 2011
The State Insurance Fund
Originated in 1923 to insure state owned properties, K-12 school systems and state university properties
28,000 +/- building/structures surveyed every three years by in house staff
At FY10 close, $46 Billion insured values
Claims are handled by in house staff and/or independent adjusting firms on contract with SIF.
State of Alabama 2011 Property Program
One Reinsurer provides $250M x/o $750M Excess Capacity
One Reinsurer provides $250M x/o $500M Excess Capacity
Three Reinsurers provide $300M x/o $200M Excess Capacity
Nine Reinsurers provide $100M x/o $100M
Seven Reinsurers provide $50M x/o $50M
Six Reinsurers provide $50M x/o SIR
S.I.R.= $3.5M All Other Perils Occurrence/$10M Named Storm Occurrence/ $10 M Annual Aggregate
$1 B
$750M
$500M
$200M
$100M
$50M
$3.5M
Statewide Impact ofApril 27, 2011
62 Tornados - 3 EF-5- 8 EF-4- 7 EF-3
240 Deaths
$3 Billion In
Insured Losses
120,000Claims
Historic Tornado OutbreakApril 27, 2011
IMPACT OF APRIL 27, 2011
ON SIF$110M Reserved
588 Claims
215 Locations
8 Exceeding $5M
6 K-12 Schools
1 Community College
1 State Park
10 Exceeding $1M
Hackleburg Elementary/High School
Phil Campbell High School
Alberta Elementary School
SIF Comparison of Catastrophe Losses
Category Ivan Cat 46
Date of Loss 9/16/2004 4/27/2011
Counties Impacted 53 33
Agencies Impacted 102 60
Locations Impacted 500 215
Number of Claims 2453 588
Amount of Loss $30 Million $110 Million
Location Claims $5M + 1 8
Location Claims $1M + 3 10
Summary Analysis
Ivan was a Category 3 Hurricane
Impacted a large portion of Alabama
Major damage to only a few locations
Cat 46 was a series of EF 3, 4 & 5 Tornadoes
Impacted a large portion of Alabama
Major damage to a large number of locations
ISSUES
Coordination
Coordination with Excess Carriers Assignment of the lead adjuster
Third Party Experts Engineers
Estimators
Accountants
Salvagers
Broker’s Role.
Communication
Communication with SIF Policy Holders
Role of Risk Management
Immediate and Clear Instruction
Availability of Advance Funds.
Independent Adjusters
Role of Independent Adjusters
Our Representative
Works with Excess Adjusters and Experts
Directs and Manages Claim
Delays
By Excess Experts to Provide
Building Estimates
Scopes
By SIF Policyholders to
Initiate Emergency Restoration due to
State Bid Law rules.
On A Positive Note
Our Broker helped us resolve issues quickly and is
currently working with excess on specific guidelines to
follow after a CAT Loss
Our Independent Adjusters remained loyal to the SIF
The SIF made advance funds immediately available to
hardest hit locations.
ALABAMADepartment of FinanceRisk Management Division
Questions?
