Fed Program Initiates Life-Saving Training for Shootings, Terror Attacks

The length of time victims wounded in school shootings and terror attacks must wait for help from an EMT could be minutes or hours—during which time they could bleed to death. This has happened in a number of cases, including a shooting at an Orlando nightclub in June, when a woman bled to death while waiting for help to arrive.

These incidents have prompted the Department of Homeland Security’s Stop the Bleed campaign, a nationwide initiative to empower individuals to act quickly and save lives in emergency situations. Bystanders are asked to take simple steps to keep an injured person alive until medical care is available. Security guards, custodians, teachers and administrators are being trained at schools and other places to administer first aid until help arrives.

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Stony Brook University Hospital’s trauma center is spearheading training for school districts and colleges across the country. According to the Associated Press:

At a recent training session, paramedics and doctors brought in fake body parts—blood spurting from the wounds—to show staffers of a Long Island school district how to tie tourniquets and pack open wounds with whatever they have.

“Seconds matter. It really can be minutes when you can lose your life,” said Dr. James Vosswinkel, the chief of trauma and emergency surgery at Stony Brook University Hospital, who led the training.

Doctors emphasized that in the critical seconds after an attack it’s important for teachers and other school staff to stay calm and begin assessing injuries. Teachers learned to apply tourniquets in case a student is shot in the arms or legs—using T-shirts or belts, if necessary—and to stick anything they can to pack wounds in the torso.

Stony Brook doctors have reached out to local schools to offer the training, but are looking to expand the program as part of a federal Department of Homeland Security initiative to other schools, colleges and police departments across the country.

“Nobody should die from preventable hemorrhage,” Vosswinkel said.

Active Shooter Preparations Lagging, Study Finds

Between 2014 and 2015, the United States experienced nearly six times as many active shooter incidents as it did between 2000 and 2001, according to the FBI. The report, Active Shooter Preparedness by Everbridge, found that even though U.S. companies are overwhelmingly concerned about violence and violent acts in the workplace, they remain unprepared.

Out of 888 organizations surveyed about their safety plans and ability to manage an active shooter situation, only 21% felt that they were prepared; and 79% said their organizations were at best somewhat prepared for an active shooter incident. Even among those who feel they are prepared, only 7% are “very much prepared,” Everbridge said.
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Preparedness is important, as companies cannot rely solely on police and other government assistance. According to an FBI study of active shooter events between 2000 and 2013, 60% ended before the police arrived. Adequate preparedness requires communication and practice plans to make sure responders know who is at risk and that people know what to do if an event happens.

Despite this, close to 40% of respondents said they did not have a communications plan in place for active shooter events.
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The survey also found that executives of organizations are much more concerned about employee or student safety than they were two years ago—the overwhelming majority (79%) said they were.
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Other Findings:

  • 69% of respondents view an active shooter incident as a potential top threat to their company or organization. Workplace violence was cited as a top threat by 62%.
  • Communicating to people who may be in an impacted building and confirming their safety was seen as the biggest challenge during an active shooter situation (71% of respondents).
  • Safety concerns are growing: 79% of executives/leaders are more concerned about employee or student safety than they were two years ago; 73% said that employees or students are willing to exchange some aspects of privacy for enhanced security.
  • 61% do not run any active shooter preparedness drills at all.

Terrorism Incidents Down, Disruption Up in 2015

A number of high-profile terrorism attacks worldwide have raised people’s fears this year, but the reality is that the number of attacks and deaths from such attacks actually decreased in 2015, according to Marsh’s 2016 Terrorism Risk Insurance Report.
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The report summarizes terrorism risk insurance trends, benchmarks terrorism insurance take-up rates and pricing, and offers risk management solutions for terrorism exposures.

The more current attacks, often perpetrated by a single individual or small group, are different from those carried out in the 1990s and 2000s when high profile locations were targeted. Individuals carrying out the more recent attacks may have no direct contact with a known terrorist organization, but could be drawn to them through writings and video, particularly on the internet, Marsh said.

These events can be very disruptive to operations in some companies. In the travel industry, for example:

  • About 10% of American travelers canceled booked trips due to the recent attacks in Egypt, France, Lebanon and Mali, which impacted $8.2 billion in travel spending, according to a survey by YouGov.
  • Booking losses for Air France were estimated to be €50 million ($56 million), the company said in a statement.
  • Airlines, hotel chains and travel websites experienced drops in their stock prices after this year’s airport bombing in Brussels.

In the United States, the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) offers businesses a federal backstop against terrorism-related losses. While the overall take-up rate for TRIPRA coverage in the U.S. increased slightly in 2015, it has remained in the 60% range since 2009, Marsh said.

Managing terrorism risk requires a combination of strategies that protect people, property and finances. On the financial side, the choice is whether to retain or transfer the risk with insurance. But the changing pattern of terrorism risk has some companies asking if they are adequately insured for business interruption and related losses. They also wonder how to prepare for potential losses from cyber terrorism and other events.

Other key takeaways from the report include:

  • As small group and “lone wolf” terrorist attacks appear to be the changing face of terrorism, many organizations are assessing their coverage for indirect losses stemming from business interruption risks.
  • Following the 2015 passage of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), take-up rates in the US edged up for TRIPRA terrorism coverage embedded in property programs.
  • Among industry sectors, media organizations had the highest take-up rate for terrorism insurance in 2015.
  • Workers’ compensation markets for terrorism risks generally stabilized.
  • The number of Marsh-managed captives accessing TRIPRA increased by 17% from 2014 to 2015, but many captives that could offer a terrorism program do not.
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Protecting Key Executives in Global Hot Spots

The recent suicide bombing in Istanbul and the Paris bombing last November killed and injured innocent bystanders and sent shockwaves around the globe. Such attacks also cause organizations to question international travel out of fear of putting their key executives and employees in harm’s way.global travel

As the risk profile changes in some locations that were once considered safe, it is critical to reassess and more deeply examine company programs to protect business travelers abroad.

First of all, for companies and their insurance advisors, there is no substitute for great advance planning. If a company is contemplating overseas travel and can establish well in advance that there exists a need for key person insurance, the coverage is easier to obtain and more cost effective. The reality is that the heightened awareness around a dangerous trip often results in an insurance need being developed or uncovered with little notice. When this need arises, the underwriting process migrates from the traditional life and disability insurance market to the playing field of high limit or specialized risk underwriters.

In one notable example, a large U.S. company recently made a significant investment in a defense contractor. Shortly after the investment closed, the company named a new chief executive officer and sought to acquire $50,000,000 of key person life and disability insurance.

As of the day of the request, their insurance advisor had eight business days to secure the insurance before the CEO departed for the Middle East, with stops in such international hot spots as Iraq and Afghanistan. Because of the abbreviated time frame, traditional life and disability insurance was not an option. The advisor needed to turn to a specialty underwriter that deals with exceptionally large and complex human capital risks.

Armed with the CEO’s itinerary (see below) and details of the executive’s compensation and equity incentive agreement, the advisor had enough information to present the submission to the underwriters. Within 72 hours, a policy was issued that covered the private equity firm’s loss of the CEO directly due to an accidental death or disability, as well as a result of acts of war or terrorism.

Few domestic life and disability carriers possess the ability to underwrite large risks when there is high-risk exposure in the world’s hot zones. Instead, companies and their brokers must work with large international insurers that are willing to deploy meaningful capacity.

The easiest way for advisors to access these markets is through an experienced U.S.-based correspondent who is skilled at designing and underwriting coverage in these volatile locations. Local correspondents or managing general underwriters also serve to guide brokers through the regulatory complexities that go along with underwriting risks through surplus lines carriers—something most life and health producers have little experience with.

The best brokers are masters at uncovering details from their clients, documenting them and communicating them effectively to underwriters. A well-written cover memo will often be the basis for offering coverage and can be the primary source for pricing consideration. A complete itinerary coupled with security details are the underwriter’s key points of interest, so make sure the information is gathered and communicated as early as possible.

Frequently, specific plans will be classified when working with international defense contractors, but one way or the other, the basic information must be made available. When underwriting coverage in highly hostile areas, rates can vary based on multiple factors, such as security arrangements, travel vendors, length of stay and, in highly hostile areas, rates even vary down to specific latitude and longitude coordinates, often within a single city or locale.

No detail is too small for spelling out the need for the insurance and financial justification, including the purpose of the trip and the client’s specific duties and objectives. This is the information that sets apart a submission and makes it more likely for an underwriter to go out on a limb with preferential pricing and terms.

Keep in mind, when underwriting risks in highly volatile areas—with the propensity for rapid deterioration—it may not be possible to negotiate coverage or a rate guarantee for the entire duration of the client’s journey. It is essential to keep in mind that the best underwriting offers go to advisors who deliver the most detailed and accurate information.

Example of a CEO’s itinerary:

Day 1 – Depart Commercial Air for Dubai

Day 3 – Arrive in Baghdad, Iraq – Transport to Camp Butler

Day 4 – Depart Baghdad and arrive in Dubai

Day 5 – Depart Dubai arrive Kabul, Afghanistan – Transport to Camp Gibson

Day 6 – Fly to Kandahar, Afghanistan

Day 7 – Depart Kandahar, Afghanistan – fly to Abu Dhabi

Day 12 – Depart Abu Dhabi for U.S.

It is important that we don’t allow acts of terrorism to knock the wheels off our economy. Business travel and face-to-face meetings are key elements in making us what we are, so it’s imperative that we mitigate the associated risk whenever possible.