maxine danaro associate director finance & business services

Maxine DanaroAssociate DirectorFinance & Business Services

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The ClaimsJanuary 2003 Canberra Bushfires Mt Stromlo (RSAA) $44m Weston Creek (RSBS) $9mDecember 04 Theft from the Classics Collection Fine Arts Policy $550,000 (for one item)August 05 Explosion in RSC (Chemistry) $4m No fatalities $4 m claimDecember 05 Water event – Mouse House Event agreed Section 2 loss didn’t get up 27 Feb 07Storm event over Canberra Hail / rain Claim is ongoing

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All Different

Total loss versus partial loss Single underwriter Multiple underwriter Single loss assessor Multiple loss assessors Domestic underwriter International underwriter Sometimes Claims Manager appointed

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27 February Storm Event

CGU ISR Underwriters

Lumley’s – Vehicles

Separate Fine Arts Policy

Travel policy (VC costs)

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The Players

CGU – Underwriters

Crawfords Appointed as the Loss Assessors

Willis was ANU’s broker (from 28 Feb 07)

ANU Appointed Claims Manager – MSM

And a myriad of ‘experts’

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Quick Overview

Happened at 10.20 pm on a Tuesday 100 buildings damaged 10 – greater than $1m University closed for 3 working days Classes resumed on Monday 5 March Some pictures to set the scene

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Where to Start

Claim formally notified at 6.30am on the 28th

Loss assessors travelling to Canberra by 9am

Signed with new brokers by lunchtime 28th

ANU requested advice on Claims Mgt Services

Signed MSM on 1 March

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How Did We Manage the Event

Facilities & Service take control

VC overseas (travel policy)

‘Controller’ – Director F&S

BCP’s existed

Priority was to get teaching back underway

Minimise the impact (therefore minimise the loss)

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We Were Lucky

No fatalities Libraries were open to 11pm so staff still on deck Primary computer centre stayed operational Power was cut to many buildings (deliberately) Early in the semester Minimal impact on student accommodation (2100 beds) 2 largest research schools – minimal damage Major lecture theatres were cleanable

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Traded on Existing Relationships

Outsourced cleaning contractors so they helped commandeer more cleaners, more equipment

Staff helped (ANU has a mixture of permanent Facilities staff and contracted staff)

We harnessed the power of all our suppliers The damage in Canberra was patchy so resources

were not needed everywhere We utilised our previous experience!!

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Teachng Resumes & then …..

The claim evolved into 2 components buildings (we included floors in building) Damaged equipment

But F&BS / F&S worked closely together 50 business units Decentralised administration Insurance function sits in Finance & Business Insurance – FTE of 1.3 (& 10% of my time) Not appointed to the claim full time

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The Strategty Evolves

Agreed an approach with the loss assessors Four major project managers agreed to help – budgets,

tenders & costing reviews approach Specialist projects run for mechanicals, flooring, skylights,

glasshouses, acousticians, roofing experts Equipment recovery team of 12-15 bought onto Campus Equipment thresholds agreed with the loss assessor Remember = Replaced equipment belongs to the underwriter

(therefore storage, disposal procedures required) F&BS Storm page http://info.anu.edu.au/fbs/About/_27_Feb_Storm.asp?p=1

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Some Stats

Carpets 15650 square metres Vinyl 8500 square metres Split Systems 475 split and packaged units

damaged (total 750-800) Chillers 24 condensers damaged in major chiller Sky lights 84 damaged out of a possible 102 Fume Cupboards 97 damaged out of a possible 487 Timber Flooring sports hall, aerobics floor, wshops & gallery Building 160,000 square metres of damage out of a

possible 435,000 Buildings 100 out of 150 Landscape everything was ‘pruned’ Meetings days and days of them

Paper/ thousands of emailsInvoices = ? thousands

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One Major Project

School of Music Significant damage Significant impact on the UG students No where else to teach them (no relief from DEST

dates) Major facility – damage done to the acoustic

integrity of L. Hall (our 1300 seat concert / graduation/ etc facility)

Five flats for visitors - damaged

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School Of Music Continued

2 Steinway grand piano’s damaged (plus many others) L. Hall – new roof? Could we fix the acoustics from ‘below’

or did the roof have to come off Scaffolding project Chair project Acoustic engineers Structural engineers Then ANU decides to do $6m worth of work at the same time

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School of Music Continues

Section 2 loss

July Piano Conference

July & December graduations

‘the opera’!!

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Mechanicals

Size of the job

Difficulty getting labour and parts

Complexity of technical issues

Mild summer 07/08

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Insurance / Claims Issues

Very few ‘insurance’ issues Good policy We rarely got the policy wording out On site visits – weekly, then fortnightly, then

monthly Saw the Underwriter on Campus!! 36 months

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The Claim Reserve

$75 million $58 million $42 miillion $35 million!! Work is still continuing Impact of reserve on ‘renewal’

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Why Not $75 m

ANU always thought about $50m Our section 2 loss has been much smaller We have utilised extensively our relationship with our panel

contractors Gone to tender where possible Some work done by ANU staff Carpet bought up front & stored on Campus Not always possible to utilise ‘externals’ or replace people

eg Insurance staff time – not charged to the claim – the hidden cost

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What Would We Do Different

Insist on a senior ANU employee being formally appointed, full-time as project manager

More forceful on equipment recovery and disposal More forceful on our 50 business units – see

insurance & pass the buck Just accept that ‘repair’ is more work than a ‘total’

loss Try to manage the ‘claim fatigue’ better

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Post the Storm

Trying to ensure ‘standards’ are complied with for skylights, roofing etc

Continuing our stormwater strategies Still formatting/ submitting the claim Still doing carpet, mechancials & glasshouses L. Hall, in the School of Music re-opens tonight Living with a poor claims record & the impact on

our premiums/ level of cover etc

Questions?