RIMS Hosts Losses Webinar Oct. 2

The Risk and Insurance Management Society (RIMS) will host a webinar, Property and Business Interruption Loss and Hurricane Ike, on Thursday, Oct. 2, 1-2 p.m. EDT.

This webinar, sponsored by Ernst & Young, will explore how policyholders should be responding in the wake of Hurricane Ike to achieve successful recovery from their losses. A panel, led by professionals in property damage and business interruption claims and recovery, will explore the challenges that many risk managers experience when faced with a complex loss that may have directly or indirectly impacted their operations.

Panelists include John Iole, partner at Jones Day; Allen Melton, practice leader at Ernst & Young’s Insurance Claims Services, Dallas; Jack Montgomery, partner at Jones Day; and Ryan Pratt, senior manager at Ernst & Young’s Insurance Claims Services, Chicago.

The webinar is free to RIMS members; non-members may participate for a fee of $30. For more information, visit www.RIMS.org/hurricanewebinar

Weather Damaged Crop Costs Top $8 Billion

Crops have incurred more than $8 billion in estimated weather-related damage thus far in 2008, according to American Farm Bureau Federation’s June Market Update.

Iowa accounts for approximately half the damage. However, there are notable problems in at least a dozen other states ranging from the excessive wetness and flooding in Illinois to drought in California.

“Wet weather and flooding create issues, as farmers are unable to plant their crops,” said Terry Francl, AFBF senior economist. “The crops they do plant do not sprout and grow, resulting in fewer acres harvested. Additionally, the difficult growing conditions greatly reduce the yield of the crop that is harvested.” He adds that expected Iowa corn yields are reduced 16 percent for this year, and 1.5 million to 2 million acres of corn and soybeans in Iowa that farmers intended to plant this spring will likely remain fallow.

This results in a $4 billion shot to Iowa’s crops. Other states taking a hit from excessive wetness and flooding are: Illinois, $1.3 billion; Missouri, $900 million; Indiana, $500 million; Nebraska $500 million; and an additional $1 billion in remaining wet states.

Some areas are experiencing the opposite problem. Drought is taking a toll on several western states and a few states in the southeast. Northern California battled the driest spring in its history. As a whole, the state suffered $500 million in estimated damage. This equals the estimated drought-related damage in all other states combined.

Nationally, the average corn yield is likely to decline some eight to 10 bushels per acre from the 2008 trend line, mostly due to inclement weather. The national average soybean yield is also likely to be down one to two bushels per acre from the current Agriculture Department projection of 42 bushels per acre.

These damage estimates relate only to crop production as of the last week of June. This means livestock, infrastructure, building and equipment losses aren’t considered.

Additionally, the estimate assumes normal weather conditions will ensue for the remainder of the growing season. Varying weather conditions later in the season could cause the estimate to grow or contract.

Some Damage Reported Following Boston Victory

The celebrating that took place following Boston's 131-92 dismantling of the Los Angeles Lakers in the NBA Finals Tuesday evening was mild compared to the damage to Kobe Bryant and his teammates.

Boston police, who increased patrols around the TD Banknorth Garden Tuesday evening and early Wednesday morning, said 22 people were arrested following the Celtics' championship celebration, the team's 17th title in their long and storied tradition.

The majority of the property damage Tuesday evening was to some storefront windows. One travel agency said it believed that damages to broken windows and elsewhere on the property would run around $50,000.

It was still minor compared to the damage the Celtics had inflicted on the Purple and Gold.