Financial Forensics Blog

Will the 2020 Hurricane Season Add Insult to Injury?
August 17, 2020

Will the 2020 Hurricane Season Add Insult to Injury?

It’s hard to imagine 2020 getting any more challenging or plainly put, worse, than it already is. But this year is not over yet and right now, we’re staring down the barrel of a hurricane season that is predicted to be the second most active on record, according to Colorado State University.

Whether or not this prediction comes true, 2020 has taught us that preparedness is crucial. We’ve seen plenty of examples this year of companies, industries, and communities that were prepared for a pandemic like COVID-19. And plenty more that were not at all or severely under prepared.

For an insurance industry that is in the trenches with the impacts of COVID worldwide, a catastrophic hurricane event would only make a bad situation worse.

Preparation is key.

The nature of a catastrophic (CAT) event is that it can put adjusters and forensic accountants in a position where they are doing 10 to 1000 times their normal workload. That’s not something we can leave to chance.

Here at Lowers Forensics International, we set out in July to help the insurance industry better equip itself for what may come this hurricane season — and for that matter, during any catastrophic event. Through a series of virtual CAT Town Hall events, we are bringing together industry experts in forensic accounting, adjusting, and related fields to share insights that can help insurers, adjusters, claims professionals, and brokers better deal with a high volume of claims that result from catastrophic natural events.

Our first Town Hall took place on July 8, 2020 featured panelists, Danielle Gardiner, CPA, CFF, Kyle Aldridge, CPA, CFF, and Grant Mizel, FMVA, CFE of Lowers Forensics International. The session highlighted how the forensic accounting process and technology can benefit insurance teams managing CAT claims. Watch a recording of this session here.

Town Hall #2 took place on August 5th and featured a high-level view of wide area damage (WAD), using a case study of fictitious “Silly Island.” Attendees were treated to an informative and entertaining example of applying the “but for” test to WAD claims resulting from a hurricane that impacted two hotels on the island while also earning CE credits. Panelists included David Bosley of Adjusteck, Joe Scarlato of Lowers Forensics, and Damian Cleary of DCThree Services. Watch a recording of the session here.

Town Hall #3 is coming up on September 2nd and will continue the story of Silly Island — this time centering on a bank that experienced utility interruption as a result of the hurricane. Our panelists include Carlos Rivera and Monika Perez of Lowers Forensics International and Eduardo Kimsi of Kimsi & Associates. Attendees will gain exposure to a new side of BI affected by utility that you wouldn’t normally see – communication and data loss — and they’ll learn how policy interpretation and quantification of loss are impacted. CE is pending.

After that, we’ll turn to hospitality for an in-depth look at common challenges faced along the way from an initial assignment to the end calculation when a hotel suffers a loss at the hands of a catastrophic hurricane. This Town Hall session will take place September 16 with an expert panel that includes Kaye Shelton and Megan Johnson of Lowers Forensics International, and special guest, Chris Van Rees of Engle Martin.

Be sure to watch our CAT page for registration and a list of other upcoming Town Hall sessions.

We hope you’ll join us as we continue this journey of learning and growing together through this Town Hall series.