Property & Casualty 2008 Compliance Conference

1. Property & Casualty 2008Compliance Conference

2. The High-Tech,High-Touch ApproachContinues The High-Tech,High-Touch ApproachContinues

3. The High-Tech, High-Touch Approach The Strategy Develop coordinated communication plan Provide consumers access to detailed information Facilitate contact with insurance carriers Use technology to write once and publish to the world Disaster Response Audrey Selden Senior Associate Commissioner Consumer Protection

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

5. Disaster Response

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

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

8. Catastrophe Planning

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

10. Disaster Response • Assistance to Consumers • Provide insurance information to the public • Consumer Help Line: 1-800-252-3439 • Website: www.tdi.state.tx.us • Disaster “resource pages” • Consumer publications • Staff Insurance Assistance and Disaster Recovery Centers • Resolve complaints • Monitor market conduct • Conduct outreach activities

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

12. Disaster Response http://www.tdi.state.tx.us/consumer/storms/index.html

13. Disaster Response • 2008-2009 Disaster Response Effort • Hurricane Dolly • Landfall on South Padre Island – July 23, 2008 • In the field through September 9 when Hurricane Ike entered the Gulf of Mexico • Assisted more than 2,000 consumers at DRCs • Answered more than 500 calls

14. Disaster Response • Hurricane Ike • Struck Galveston Island and the Texas coast • TDI in the field September 19, 2008 – April 10, 2009 • 250 TDI volunteers assisted more than 8,000 consumers at 60 Disaster Recovery Centers in 20 locations • Coordinated with TDEM • Frequent updates to the Hurricane Ike web page • Hurricane Ike phone bank and extended Consumer Help Line hours through January 2009 – 11,800+ calls

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

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

17. Disaster Response http://www.tdi.state.tx.us/consumer/storms/cpmdisthunder.html

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

19. Disaster Response http://www.tdi.state.tx.us/consumer/storms/cpmdisrole.html

20. Disaster Response http://www.tdi.state.tx.us/consumer/storms/hcoalition.html

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

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

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

24. Disaster Response • Contact Information • Consumer Help Line: 1-800-252-3439 • Fraud Hot Line: 1-888-327-8818 • Arson Hot Line: 1-877-434-7345 • www.tdi.state.tx.us