Being prepared for a disaster is essential for the survival of any insurance agency, and having alternative means of communication is only one part of the plan, according to speakers at a recent conference in New Jersey.
Their remarks were reported by the Professional Insurance Agents of New Jersey Inc., which held its 10th annual CEO/Advantage Conference in Monroe, N.J. Press were not invited to attend.
PIA said the conference featured two panel discussions, one an account of Hurricane Katrina from PIA of Louisiana National Director Robert Page, as well as insight from industry regulators, companies and agents.
According to PIA's account of his remarks, Mr. Page said insurance agents need to be there for their clients after a disaster, even though they may be experiencing the same types of losses.
Addressing the positive way the insurance industry handled the situation after the hurricane, Mr. Page noted how the Internet and nontraditional forms of communication were vital.
He said text messaging was the first thing that was up and running, and was the only form of communication available. The PIA of Louisiana's Web site was also an invaluable tool to help facilitate communication for insurance agents, insurance carriers and policyholders, said Mr. Page.
Speakers said that having a disaster plan was vital to a business' survival and it is essential that it be reviewed and tested regularly.
PIA reported that a representative from New Jersey's insurance department said the National Association of Insurance Commissioners is considering changes in insurance policies that would lead to the National Flood Insurance Program becoming a reinsurance mechanism for flood losses.
Data protection is also an issue the industry needs to address so that agents and others have access to information after a disaster. Plans for information recovery need to be updated continuously.
One participant noted that many companies that lose records in a disaster never recover, and many are never ready for a disaster. Agents were advised they need to be able to provide the risk management services to deal with these issues in the future, or risk losing business to those who can.
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