Category Archives: Disaster Preparedness

Diaper Dilemma

As mom to a toddler and an eight-month old, the news that global production of disposable diapers could be affected following an explosion and fire at a chemical plant in Japan over the weekend, more than caught my attention.

Nippon Shokubai Co’s plant in Hyogo Prefecture produced acrylic acid, a key ingredient in a resin called SAP that is used in disposable diapers.

According to an blog post, the plant produces about 20 percent of the world’s SAP and 10 percent of global output of acrylic acid.

NBC cites the Nikkei business daily saying that operations at the plant are likely to be halted for a long time and other manufacturers of SAP resins are operating in full production mode, leaving little room for back-up production.

Over at Chubb’s business blog Industry Exposure, Barry Tarnef, an assistant vice president and a senior loss control specialist for Chubb, observes that the incident serves as another reminder that supply chains are fragile.

Industrial accidents, natural disasters, labor issues (such as strikes and shortages), production problems and political upheaval, and trade disputes are just some of the main causes of supply chain disruption, according to the Insurance Information Institute (I.I.I.).

The I.I.I. notes that it can take two years or more for a company to recover from a supply chain failure and that the purchase of supply chain insurance can help protect businesses. However, insurance is only part of the solution.

As Loretta Worters, vice-president with the I.I.I. says:

Sound loss prevention engineering can best help protect the supply chain from property loss, so that insurance becomes a last resort rather than a first line of defense.†

Check out this I.I.I. presentation on how to protect your global supply chain.

Terrorism Risk 11 Years On

As we mark the 11-year anniversary of September 11, a just-released study from the Insurance Information Institute (I.I.I.) finds that while the risk is changing, terrorism is an evolving and ongoing threat for the foreseeable future.

The paper notes that despite recent counterterrorism successes, including the killing of al-Qaida leader Osama bin Laden, the threat from terrorism risk is far from insignificant.

Cyber-terrorism is one area of growing concern for governments and businesses around the world, according to the I.I.I.

It says recent high profile attacks, such as the sabotaging of Iran’s nuclear program via the Stuxnet computer worm and malicious infiltration attempts by China, underscore the growing threat to both national security and the economy.

It goes on to cite a recent study by the Ponemon Institute in collaboration with Bloomberg Government, that estimated private sector spending on cyber security at roughly $80 billion in 2011, but noted this was not nearly enough.

The Ponemon study found that “utilities, banks and phone carriers would have to spend almost nine times more on cybersecurity to prevent a digital Pearl Harbor from plunging millions into darkness, paralyzing the financial system or cutting communications,† according to a report by Bloomberg News.

The findings were based on interviews with technology managers from 172 U.S. organizations in six industries and government.

More I.I.I. facts and statistics on terrorism risk here.

Making Your Home More Disaster Resistant, One App at a Time

You may not be surprised to hear that more than half of American cell phone users now have smartphones, according to a report in the New York Daily News.

As Americans increasingly rely on their phones to do more than just make phone calls, there is a growing market for applications to enable those mobile lifestyles.

While many apps fall into the entertainment category, the Insurance Information Institute (I.I.I.) has just launched a free mobile disaster preparedness app that could protect your home and family.

Whether it’s a hurricane, wildfire, severe winter weather, earthquake, or other disaster, the I.I.I.’s “Know Your Plan† app for iPhone provides check lists and vital safety tips to help users prepare for catastrophe before disaster strikes.

“Know Your Plan† provides consumers with a library of preloaded checklists to learn about important property protection and preparedness steps. Customized lists can also be built from scratch.

Each checklist gives users options to set task completion dates, chart their progress and make additional notes for individual tasks.

One of the cool features of the app is that in the event of a disaster, users will be able to access a geotargeted emergency alert feed guiding them to up-to-the-minute information about local evacuation routes and other details about the disaster.

Also included are resources to help plan for an evacuation—including one for pets.

“Know Your Plan† is available in iTunes, or by searching “Insurance Information Institute† in the App store from any iPhone.

All property mitigation information was developed in partnership with the Insurance Institute for Business & Home Safety (IBHS).

“Know Your Plan† is the second in a series of apps created by the I.I.I. It follows Know Your Stuff – Home Inventory app, which is available for both iPhone and Android platforms.