The Business of Saving Lives

May 11, 2011 TAGS: , , , ,

With the death toll from the late April storms now totaling over 350 and many still missing, renewed attention is being focused on efforts to build better and safer homes that can withstand many types of natural disasters and help protect occupants. Much of this important work is being carried on by the Insurance Institute for Business and Home Safety (IBHS), and since opening a new facility less than a year ago, IBHS has been testing a variety of materials and building techniques against hazards such as wind, hail, and fire.YouTube Preview Image

IBHS recently conducted an ember storm test in their new South Carolina research facility. Some video highlights from that test are shown above. The test simulated an ember storm on a house with a range of common exterior materials and with common landscaping and typical related debris such as pine straw in the rain gutters. The effectiveness of different materials is striking and it clearly shows how increased attention to materials and landscaping can make a significant difference in how long a home can resist damage.

As I’ve noted before, Xactware and our parent company, Verisk Analytics, sponsor IBHS because we believe the research they conduct has saved lives and will continue to provide information that will help save many more. Another of the great appeals of IBHS research is their focus on practical, low-cost solutions whenever possible. A good example is a recent blog posting that discusses how homeowners can significantly reduce earthquake risks in their homes for less than $70.

Be sure to check out the IBHS website DisasterSafety.org for continuing reports on their research.

 

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The Unprecedented Storms of April 2011

April 28, 2011 TAGS: ,

Click image to view MSNBC slideshow

Our thoughts and sympathy are with the victims of yesterday’s storms that took the lives of more than 200 people and caused widespread damage across many states but especially in Alabama and Mississippi. It is a reminder of how much the property insurance industry does to help people at a time like this. But it is also a reminder of how powerless and limited we are when lives are lost. That’s why Xactware is a strong supporter of efforts like those of IBHS, who work to develop standards and building methods that can save lives in tornadoes, hurricanes, wildfires, and other natural disasters.

In the coming month I will be asking employees to help Habitat for Humanity build a home in our community and to participate in a range of service projects. We will do this to celebrate the 25th anniversary of the founding of our company and with the victims of the past year’s natural disasters in our hearts and minds. As we do every year, we will also be fundraising for the United Way with matching funds available from our company.

The violent weather across the United States this April is breaking records. Before this April, the previous record for tornadoes was 267 set in 1974. As of April 27, 2011, 453 tornadoes have been reported. That compares to an overall April average of 163. Nationwide, during an average April, there are about 3,300 severe weather reports that include tornadoes as well as hail and high winds. This April there have been more than 6,500.

The end may not be in sight. Additional severe weather was reported today, the weather patterns are continuing, and some experts are projecting the stormy weather to continue well into May.

The cumulative effect of these storms has also shattered records here at Xactware. Traffic on our XactAnalysis network is at an all-time high and is up as much as 60 percent over the previous record set in 2010. Xactware is well prepared for events like these, and our networks are easily handling the additional load with no diminished performance or outages.

Our Xactware pricing team is also monitoring the effect of these storms on rebuilding prices and is reporting on their research at least once a month. All other Xactware teams, such as support and training, are actively working to help our customers complete the important work of restoring the homes and property of victims.

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The Value of Excellent Claims Service

April 6, 2011 TAGS:

Xactware customers have always placed a high value on claims service. I’ve personally seen many examples of how hard they work to constantly improve and to set new standards of performance.

A recent survey shows the value independent agents place on excellent claims service. The “2010 Survey of Agent-Carrier Relationships” from Channel Harvest and sponsored by Insurance Journal, surveyed 1,500 agencies from across all 50 states. Most independent agents rated the quality of claims service as the most important factor they look for when representing a carrier. In fact, agents thought claims service was significantly more important than their own compensation.

These savvy agents realize that top-quality claims service is one of their best marketing tools. Fast and friendly service not only helps retain customers, it helps sell policies to the policyholder’s family and friends. It also contributes to the reputation of the agency. Higher compensation in the short term does not typically make up for the downside of claims service that doesn’t measure up.

I was also interested that agents thought the most important aspect of great customer service was speed of adjuster contact. Many elite property insurers and independent adjusters have used our XactAnalysis network to push the speed of adjuster contact to amazing levels—even after a large catastrophe. Service providers are immediately notified and they have used the network to respond quickly with services and documentation. Alerts help supervisors make sure no claim falls through the cracks and that the level of service is always maintained.

When service doesn’t meet expectations, agents are often the first to hear about it. This makes them experts on what customers are thinking and on what they are looking for. The independent agents’ survey responses show that the hard work and commitment of our customers has a significant impact on consumers and does not go unnoticed.

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Some Unsung Benefits from Xactware Innovation

March 23, 2011 TAGS: , ,

As we talk with customers and develop new features, we often become aware of a wide range of benefits that extend far beyond the original issue being addressed.

For example, our XactAnalysis network was designed to help make claims handling faster, easier, and more thorough with electronic communications, real-time reporting, enhanced detail, and unprecedented analytics. It delivered this but it also delivered something more—the possibility of converting a paper-intensive profession into an almost paperless one.

When I began my career, I often visited claims centers with row upon row of claims files in cabinets or on shelves. These files were usually the tip of the iceberg of many more housed in warehouses. Most of these files represented related files kept by service providers, independent adjusters, and policyholders. As I noted in my keynote address at Xactware User Conference 2011, our customers have used our products to make a huge impact. They aren’t buying near as many filing cabinets and shelves or renting near as many storage warehouses.

Most importantly, they are having a big impact on the environment.  Using very conservative assumptions about the amount of paper in those files and about how many pages people still print, we calculate that Xactware customers saved at least 204 million sheets of paper in 2010 alone.

Another very impressive benefit comes from our new Aerial Sketch feature that I touched on in an earlier post. The feature makes it much faster and easier to dimension a roof, but the additional safety it provides can have a marked impact on the industry. According to the Consumer Product Safety Commission, accidents involving ladders cause more than 164,000 emergency-room treated injuries in the United States each year. OSHA notes that despite years of training and regulation, ladders still represent a “significant risk of harm.” Ladder safety is a major issue for our customers, and considerable time and effort is invested to help prevent ladder-related accidents.

Aerial Sketch doesn’t eliminate the need for estimators to use ladders, but it can reduce ladder use on many estimates. The most dangerous activities on ladders have proven to be the transition from the ladder to the roof and the transition from the roof to the ladder. Even when a ladder is still needed to examine a roof, when dimensions are already in hand, estimators will often be able to scope roof damage from a ladder without climbing on the roof. When damage to the roof is already known, the use of a ladder can be eliminated.

Although most of the focus on Aerial Sketch has been on efficiency and accuracy, the benefit that we can all feel best about is the one that will help reduce injuries.

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Earthquake and Tsunami in Japan

March 14, 2011 TAGS: , , ,

Like all of you, I, and everyone at Xactware, have been closely watching the events in Japan. Certainly our hearts go out to the many victims of the earthquake and tsunami. Much of the disaster is still unfolding and the full extent of the damage is still being calculated, but it’s already clear that there has been a significant loss of life and years of rebuilding are ahead.

Our sister company, AIR Worldwide, is estimating the damage in Japan at between $15 billion and $35 billion. Other countries suffered only mild damage, but the tsunami still caused an estimated $40 million in damage to the U.S. west coast with damage in Hawaii expected to reach tens of millions.

It was disasters like this one that spawned the property insurance industry. Most historians trace the beginning to the London Fires of 1666. In the United States, Benjamin Franklin is credited with starting the first property insurance company.

The idea of sharing risk has proven to be one of mankind’s great ideas. Events like these show there is often little that can be done against the great forces of nature. They also show that insurance coverage and the professionals that provide the expertise and resources to rebuild are key to a speedy recovery.

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Dimensioning Many Losses Just Got a Lot Easier

March 2, 2011 TAGS: , ,

For the past several years one of our top priorities has been to find ways to address the challenges of scoping a loss. Nearly everyone in the industry has experiences—and perhaps a scar or two—that prove loss sites can be challenging, uncomfortable, and unsafe. To get the information they need, estimators must deal with safety issues, weather issues, and access issues that often require extraordinary effort. Sometimes demolition must be started before full access can be achieved, and other times special staff, such as rope-and-harness teams, must be called in to help collect all the needed information.

More than a few estimators have climbed on a roof, balanced a clipboard on a ridge, and reached for the tape measure, just as a gust of wind sent the clipboard skittering down and off the roof. I’ve even heard of an estimator who had his ladder stolen while he was on a roof. Safety, accuracy, and efficiency are always top concerns when visiting a loss site.

Over the years we’ve worked hard to help make onsite scoping easier. We’ve pioneered and introduced tablet-based computing, voice-activated computing, integration with Disto measuring devices, and much more.

But I’m most excited about what I think are huge steps forward with our recent introduction of XactScope and Aerial Sketch. XactScope is a smart-phone app that allows estimators to use a phone on site to enter scope items that can be downloaded to Xactimate. The new Aerial Sketch feature allows estimators to dimension a roof using aerial photos.

The possibilities are dramatic. For example, after a hail storm, estimators can dimension all the roofs they plan to visit before leaving the office. The roof plans can be sent to XactScope on their smart phones. On site they can specify damaged slopes by tapping them, use illustrations to select the correct shingle, and download the estimate to Xactimate.

On total losses, such as the homes recently destroyed by wildfire in Texas, the photos can provide detail about the structure such as the type of roofing and exterior finishes. The location of dormers, intersecting roofs, and plumbing penetrations can also provide important clues about the location of interior rooms.

Steep roofs, multi-story roofs, slippery roofs, fragile roofs, and unsound roofs, can now be navigated from the safety of an office chair, and even the most complex roofs are amazingly fast to dimension. I believe these new onsite scoping features will have a significant impact on the speed and safety of many types of estimates.

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Users Shine at Xactware User Conference 2011

February 23, 2011 TAGS:

We had a great time at our second-annual user conference last week. Xactimate 27.3 was released on Thursday, and we announced and discussed many of our new products and features, including XactScope for the iPhone and iPad, Aerial Sketch, and XactContents Collaboration.

With help from our sponsors we were able to host the conference at Salt Lake City’s Grand America Hotel, and we got a lot of positive feedback about the quality of the facility and the service.

In last week’s post I mentioned how important I felt it was for users to tell their stories. We heard some terrific ones this year. For example, we saw how a very complex grocery store collapse with limited access was dimensioned and sketched with amazing speed; we learned how to estimate a spiral stair in less than two minutes; and we saw how to dimension a complex roof system in just minutes and without ever leaving the office. Each session I attended was filled with practical, useful information.

Feedback from many of the attendees and Xactware employees indicates that they found the sessions as insightful and inspiring as I did. If you attended the conference and we did not get a chance to chat, I’d like to hear your feedback. If you didn’t get a chance to join us this year, I’d also like to hear your thoughts and ideas. And please let us know if you would like to participate in future user conferences or have ideas for sessions or presentations you would like to see.

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Xactware User Conference 2011

February 16, 2011 TAGS:

Tomorrow we open our second-annual user conference with two days of sessions in Salt Lake City. I’m looking forward to connecting with some of our most creative users and many of the industry’s leading professionals.

Our user conference was established with several key goals. We wanted the conference to be about our customers and to have customers tell their stories and share their insight whenever possible. We also wanted a setting where Xactware employees and customers could meet and talk. That’s why we have features such as “Ask an Expert” where attendees can have one-on-one, face-to-face sessions with some of our top support professionals. We have break-out sessions from industry leaders, focus groups, topic lunches, an evening dinner, and a reception at our home office.

I know from experience how impressive it is to meet our customers and to see how much they care about their work. When you experience firsthand some of the innovative ways professionals use our products, it’s easy to come back to the office recharged and with a new commitment to provide even better products and even better service. Not all of our employees have jobs that put them in regular contact with customers and a user conference is a great place for them to have that experience.

At the same time I often wish our customers could meet our dedicated employees that often work behind the scenes and see how hard and creatively they work to provide products that can make users more efficient and more accurate.

I recognize that only a small percentage of our users will be able to make it to a user conference. Still, I believe that the conference benefits everyone. The information we gather at the conference will give us a deeper understanding of the challenges and opportunities users are facing and to more effectively meet those needs. The influential professionals who attend the conference will bring home new ideas and new approaches that they will share with many others.

If you can’t attend, you can still keep in touch during the conference on Twitter via our live tweets (hashtag #XUC2011) or by checking in at Xactware.com after the conference.

I’m looking forward to a great two days.

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AIR Worldwide Calculates the Cost of Last Week’s Storm

February 9, 2011 TAGS: , ,

Our sister company, AIR Worldwide, has released some interesting statistics about the huge winter storm that struck much of the country last week. AIR estimated the damages at between $760 million and $1.4 billion. That includes damage to residential and commercial structures and their contents, damage to cars, payments for additional living expenses, and payments for business interruption.

AIR says the winter storm was one of the largest to hit the U.S. since the 1950s. Nearly 100 million people were affected by the storm in 30 states. Some highlights from AIR’s report:

  • Pressure readings in Montana were  1050 mb—a reading only seen every 20 years or so
  • Newark, NJ, has snow accumulation of 62 inches compared to an average of 25
  • 900 vehicles were stranded on Chicago’s Lake Front Drive
  • The storm caused widespread electrical blackouts
  • 70 roof collapses were reported in and around Boston and many more are at risk

Roof collapses and structures with roofs that have been compromised are challenging repairs to estimate. It’s often too dangerous to climb on roofs to get measurements and sometimes it can be challenging to determine all the dimensions of roofs that have collapsed. At our user conference next week, we will not only be talking about the effective roof estimating tools available in our current version of Xactimate, we’ll be demonstrating some exciting new tools coming in our latest release.

If you can’t make to the conference, we’ll also be posting more information on our website soon. The new Xactimate version 27.3 will be available for installation later this month.

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Xactware Property Reports Released

February 2, 2011 TAGS: ,

Xactware released its property reports for 2010 this week. This year we issued reports for the United States, Canada, and the United Kingdom. The reports take a look at important trends in property repair costs based on information reported to Xactware.

The reports show that many trends are worldwide trends but also show some key differences. For example, the market value of homes in the United States rose in 2010 but continued to languish compared to Canada where the market value of homes has been consistently rising through the economic downturn. Since 2006 the market value of homes in the United States has dropped by 21.72 percent while the market value of homes in Canada rose by 52.74 percent. That’s a remarkable difference.

At the same time most reconstruction costs in the United States and Canada fell last year with the United Kingdom reporting a mix of increases and drops. In the United States, only two states plus the District of Columbia reported higher costs and in Canada only two provinces showed increased costs. In the United Kingdom costs rose most in London with many costs down in Northern Ireland and Scotland.

For more information about Xactware’s 2010 Property Reports, visit Xactware.com.

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