FM Global Design Standards
Dennis Anderson, P.E., FM Global
FM Global Client Base
Approximately 40% of Fortune 1000
companies
Mutual company – clients are owners
Insurance without actuaries..…
actuaries
Committed to:
Knowledge development
U d t di off h
Understanding
hazards
d
Practical cost effective solutions
FM GLOBAL VALUE PROPOSITION
pp
Our p
promise is to help
protect the
value created by our client’s business.
Ou p
Our
process
ocess is
s to
o assess and
a de
engineer
g ee
risk, to help prevent and mitigate loss,
and to provide capital for risk transfer
purposes.
We believe that the majority of all
loss is preventable.
CONTEXT: PROPERTY HAZARDS ARE REAL
T kR
Track
Record
d
FM Global: Research Campus
Fire Technology Large Burn Lab
UNDERSTANDING THE WIND HAZARD
HURRICANE FACTS
´
Eye Diameter:
Average 15 - 20 miles
´
Eye size:
NOT related to the size or strength
´
Hurricane force winds: Typically 25 mile radius
´
T i l storm
Tropical
t
winds:
i d
U
Up tto 175 mile
il radius
di
“WHY WE SETTLE FOR BEING VULNERABLE”
1))
pp
It won't happen.
2)
If it does happen
happen, it won't
won t happen to me.
me
3)
If it happens to me,
me it won
won'tt be that bad
bad.
4)
If it happens
h
to
t me and
d it's
it' bad,
b d th
there's
'
nothing I can do to stop it anyway.
VULNERABLE CONSTRUCTION
BEING VULNERABLE IS A CHOICE!
BEING VULNERABLE IS A CHOICE!
TYPICAL ROOF WEAKNESSES
OTHER BUILDING WEAKNESSES
COST EFFECTIVE FIXES THAT WORK!
Secure rooff deck
S
d k andd
flashing particularly at
edges and corners
1
Secure building envelope
including doors and other
openings
2
Take reasonable precautions in
the hours immediately before loss
3
STANDARD DECK ATTACHMENT
STANDARD DECK ATTACHMENT
PERIMETER DECK ATTACHMENT
CORNER DECK ATTACHMENT
BEING VULNERABLE IS A CHOICE!
COST EFFECTIVE FIX!
COST EFFECTIVE FIX!
FLASHING: COST EFFECTIVE FIX!
1. Pre drill
2 Installll
2.
screw with
washer
INSULATION ATTACHMENT
WINDOWLOCK GLAZING SYSTEM!
BEING VULNERABLE IS A CHOICE!
BUT DO THE FIXES WORK?
CHARLEY,, FRANCES,, IVAN,, JEANNE!
Windstorm Loss from 2004 Hurricanes
Impact of
Nat Cat
Benefit from risk improvement
Engineering = $430M
$430M
Gross Loss
s (US$M)
700
600
500
400
00
650
300
200
220
100
0
"Modeled"
Modeled Wind Loss
Projection
Actual FM Global
Gross Wind Loss
THE UGLIEST OF THE 3 SISTERS!
Hurricane Katrina (2005)
49% reduction
attributable to risk
improvement
Gross
s Loss in US
S$
Millions
M
1000
800
600
985
400
505
200
0
P j t d Loss
Projected
L
A t lL
Actual
Loss
ADD IN RITA,, WILMA,, GUSTAV & IKE!
2.50
(ce
ents)
Avg Loss
s/$100 Value
e
3.00
2.00
1.50
2.30
84% reduction in average
g loss
1.00
0.50
0 37
0.37
0.00
Unimproved
Locations
Improved Locations
Average Wind Loss / $100 TIV
LET ME TELL YOU A STORY!
´
Improvements
I
t Needed
N d d
«
«
«
«
´
Bldg 1 Roof
Bldg 2 Steel Deck
Improve Flashing
Emergency Plan
Multi-million loss potential
p
«
«
Lose both roofs
Key juice facility
CHOSE NOT TO BE VULNERABLE!
New Roof for Bldg #1
´ Improved Roof Fastening Bldg #2
´ Improved
I
d flflashing
hi on allll roofs
f
´
´
Developed Emergency Plan
« Hurricane
Response
p
« Emergency Generators
« Business Continuity
JUST A 2 DAY DISTRACTION - TWICE!
´
September 5 - Frances
´
September 26 – Jeanne
´
Roofs remained intact
´
Mi
Minor
wallll d
damage
´
Generators effective
´
No p
production interruption
p
DISTRACTION
Hurricane Frances & Jeanne (2004)
DISASTER
Hurricane Frances & Jeanne (2004)
FLOOD
LOCATION, LOCATION,
“LOCATION
LOCATION LOCATION
LOCATION”
WATER DAMAGE
FLOOD DOORS & BARRIERS
BEING VULNERABLE IS A CHOICE!
BEING VULNERABLE IS A CHOICE!
A WORD ABOUT EARTHQUAKE!
SEISMIC SHAKE TABLE
THE CHOICES
´ Disaster?
´ Distraction?
CLIMATE CHANGE
Flood
´ Wind
´ Bushfires
´ Snow/Freeze
´ Tornado
´
´
WILD CARD: How much? How fast?
Marg
gin for Erro
or
V erability
Vulne
CONTROL STRATEGY – NATURAL HAZARDS
´
Avoid the Zone!
Choose not to be vulnerable
´ Build in resilience
´
« Keep
the water out or limit what gets wet
« Fix the weaknesses
« Brace, anchor, be flexible, and use SGSV
´
Educate and train staff
QUESTIONS?
www.fmglobaldatasheets.com
www.approvalguide.com
Dennis Anderson, P.E.