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The Seven Strangest Man-Made Disasters

Yesterday, Emily did a post recounting Aon’s list of the top five global hotspots for earthquakes. Given the seemingly relentless seismic activity and destruction wrought by shifting tectonic plates just in 2010 alone, such natural disasters should be high on everyone’s watch list.

But as we are seeing right now in the Gulf, man-made disasters can present enormous perils of their own. And it just so happens that I came across Spike’s list of “The Top Seven Most Bizarre Man-Made Disasters” today.

You can head over there for a full rundown of all the incidents (including Bhopal, the Texas City devastation and the new-to-me Boston “Molassacre”), but these are the three I find most interesting.

3. The Gates of Hell

This pit of fire that has been burning for 40 years looks more like something out or Mordor than Turkmenistan. But the burning crater of natural gas began shortly after a Russian drilling rig collapsed into the Underworld and no one knew what to do.

Having opened this huge poisonous gas cavern up, the atmosphere and the nearby residents in the village of Derweze decided the next logical move would be to set this huge crater on fire, and it has been burning ever since.

Sure, light it on fire. Why not? What could go wrong? Seems logical enough.

Here’s video of some tourists enjoying the incredible, football-field-wide hole to hell (not literally).

Yikes.

2. The Centralia Underground Coal Fire

Our former publisher and Pennsylvanian Bill Coffin used to talk about this one all the time, so I have been familiar with its existence for some time. Nevertheless, it’s completely nuts. Like the Gates of Hell, it has been burning for decades — since 1962 in fact. But unlike the Turkmenistan fire, its genesis is not so clear.

It is suspected to be a blunder by the local fire department in 1962 which had been tasked with cleaning up the local landfill, which itself sat on top of an abandoned strip mine. To accomplish this, they set the landfill on fire, apparently not an unheard of method at the time. However, the theory goes that the fire was not put out properly, and heated up veins of coal underneath the landfill, which began to smolder over time.

Eventually the reaction lit an underground fire which continued to burn, which caused little concern from local authorities until almost two decades later when in 1981, a 12-year-old boy fell into a 150-foot sinkhole which suddenly opened up in the backyard underneath his feet.

“Blunder” seems to be putting it lightly. A “blunder” is forgetting to send out an email before you leave work for the night. A “blunder” is perhaps running into a parked car while trying to do a u-turn. Or a “blunder” may even be leaving the iron on when you run out the door on the way to brunch. Accidentally igniting a 1,200-degree coal fire that has burned for a half century — and is expected to continue burning until around 2260 — is more than a “blunder.”

I think we can all agree that it should at least be considered a “my bad.”

Centralia Pennsylvania Sign

An actual sign in Centralia, PA.

1. The Great Pacific Garbage Patch

This is one of the neatest, worst things I have ever found out about. Discovered by chance by Captain Charles Moore some 12 years ago, the Great Pacific Garbage Patch is an unfathomably immense, floating, amorphous collection of trash in the middle of the planet’s largest ocean. It is located between Hawaii and California due to the fact that that is where multiple sea currents meet — and there the (mostly) plastic mass churns in the water at twice the size of Texas.

Pretty cool, huh? But sorry, folks, it’s not all beautiful pollution.

There is also a downside.

Over the decades the garbage patch has been developing, much of the debris has been broken down into smaller and smaller particles, comprised largely of various kinds of plastics, which is then mistaken for food by the marine life, which in turn contaminates the ecosystem all way up the food chain.

Since the area is so massive in scale (both in terms of width and depth underwater), many scientists believe it is nearly impossible to cleanup the contamination at sea, and that it would likely do even more damage to the surrounding sea life in the process. When people talk about our need to recycle plastics, this is why.

All cavalierness aside, this is obviously a terrible problem and represents one of the unforeseen — and, until relatively recently, unknown — risks of our modern society. What can be done? Who knows. Perhaps nothing. But it’s just another lesson for all of us about what types of unexpected disasters can compile — little by little, day by day — when you’re no one is paying attention.

Below, Cpt. Moore speaks about the problem with Stephen Colbert.

Stephen speaks much truthiness.

Aon Unveils Five Earthquake Hotspots

Aon has listed five earthquake hotspots around the world, following the launch of its report, “When the Earth Moves: Mega-Earthquakes to Come?” Aon lists the five hotspots as:

Caribbean (Lesser Antilles) – The 2cm a year rate of plate convergence is enough to produce a mega-earthquake of Mw 9.0 once every 3000 years. A major loss in the Caribbean would quickly use up available reinsurance capacity.

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Chile – As the only segment of the Chile-Peru Subduction Zone not to have ruptured within the last 100 years, the north Chile segment is now considered to be a region at high risk from an earthquake similar in size to the 2010 event. Following this year’s earthquake in Maule, reinsurance programs are now renewing with increases of 75% or more.

Indonesia (Sumatra) – Padang is now regarded as being at high risk from a mega-earthquake comparable to that which occurred in 1797, with a magnitude of 8.5 or more. A mega-earthquake would undoubtedly increase the price of reinsurance following a sizeable insured loss.

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Japan – The South Japan Subduction Zone (Nankai Trough) has a complex pattern of three segments. The largest earthquakes rupturing along the whole subduction zone may have magnitudes up to 8.6. A mega-earthquake in this region would most likely be a market-moving event.

North America (Cascadia) – The last mega-earthquake on this subduction zone occurred 300 years ago. While the short to medium term probability of a mega-earthquake may be low, insurers should not disregard the associated risks to the cities along the coast.

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After the devastation in Chile and Haiti this year, predictions like these are a valuable resource. As John Moore, head of international analytics at Aon Benfield said:

“Predicting the location of the next mega-earthquake is an inexact science but by examining the fault lines and historical precedence of earthquake activity in five of the world’s most vulnerable regions, this report sets out to assess the current risk and improve our understanding of where and when the next mega-earthquake could hit.”

Understanding when and where the next catastrophe could take place is the ultimate form of risk management.

Maximizing Your D&O Coverage

In these volatile economic times, solid D&O insurance coverage can be vital to protecting your company’s executives. But a top-notch D&O program has a lot of facets that need to be considered. So to that end, Caroline Spangenberg and Brian Epps of Kilpatrick Stockton have come up with a list of tips to make sure your D&O policy is doing what you need it to do.

Be diligent in the application process and negotiate the language.
Providing complete and accurate disclosures in the policy application is critical because material misrepresentations in many states avoid coverage even without proof of an intent to deceive and without having to show that the misrepresentation was related to the loss. In many states, to demonstrate materiality, the insurer need not prove that it would not have issued the policy at all – merely that it would not have issued it on the same terms and conditions or for the same premium. If the insurer succeeds in rescinding the policy on the basis of misrepresentation, it is void – there is no coverage even for innocent insureds.

Be sure not to miss their informative article, featured exclusively at RMmagazine.com.

Arkansas Flash Flood Kills at Least 19

Last Friday, America received yet another tragic lesson that Mother Nature’s wrath is unpredictable and unstoppable. At least 19 were killed by a flash flood at an Arkansas campground that hit while most of the campers were asleep with no way to escape the rush of water, mud and debris.

CNN is reporting a first-hand account from one of the flood survivors.

Survivor Terri Rhoeder, who lost her mother, brother and sister-in-law in the tragedy, described for CNN’s “American Morning” how quickly the water rose. She had been sleeping outside on an air mattress when she awoke and realized she was floating on the water.

“When I stood up from my bed, it was at my knees,” Rhoeder said. “By the time I could contemplate what was going on, its at my waist. And I was being swept out with it at my shoulders. As campers, we are used to nature. Not this extreme.”

The water rose from the normal level of four feet to 23 feet within a short period, Beebe said

Fortunately, her niece did survive — by grabbing a tree branch and hanging on for three hours waiting for a rescue team, which continued its efforts to locate as many people as possible in the immediate aftermath, eventually growing to some 100 rescuers as it continued to search throughout the Ouachita National Forest in western Arkansas.

Even with the tragedy so recent, it is — as always — important for those responsible for disaster response to evaluate what could have been done better. In this case, officials will look at the flash flood warning system.

The warning system intended to notify campers on federal land about potentially devastating weather will be re-examined in Arkansas and throughout the nation, U.S. Agriculture Secretary Tom Vilsack said Saturday.

You can hear about the disaster in the video below.