FM Global Design Standards - World...

FM Global Design Standards

Dennis Anderson, P.E., FM Global

FM Global Client BaseFM Global Client Base

Approximately 40% of Fortune 1000 companiescompanies

Mutual company – clients are owners

Insurance without actuariesInsurance without actuaries..…

Committed to:

Knowledge developmentU d t di f h dUnderstanding of hazardsPractical cost effective solutions

FM GLOBAL VALUE PROPOSITION

Our promise is to help protect thep p pvalue created by our client’s business.

Our process is to assess and engineerOu p ocess s o assess a d e g eerisk, to help prevent and mitigate loss,and to provide capital for risk transferpurposes.purposes.

We believe that the majority of allloss is preventable.

CONTEXT: PROPERTY HAZARDS ARE REAL

T k R dTrack Record

FM Global: Research CampusFM Global: Research Campus

Fire Technology Large Burn LabFire Technology Large Burn Lab

UNDERSTANDING THE WIND HAZARD

HURRICANE FACTS

Eye Diameter: Average 15 - 20 milesEye Diameter: Average 15 - 20 miles

Eye size: NOT related to the size or strength

Hurricane force winds: Typically 25 mile radius

T i l t i d U t 175 il diTropical storm winds: Up to 175 mile radius

“WHY WE SETTLE FOR BEING VULNERABLE”

1) It won't happen.) pp

2) If it does happen it won't happen to me2) If it does happen, it won t happen to me.

3) If it happens to me it won't be that bad3) If it happens to me, it won t be that bad.

If it h t d it' b d th '4) If it happens to me and it's bad, 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!

S f d k d S f d k d Secure building envelope Secure building envelope

Secure roof deck and Secure roof deck and flashing particularly at flashing particularly at

edges and cornersedges and corners

1

including doors and other including doors and other openingsopenings

2Take reasonable precautions in Take reasonable precautions in the hours immediately before lossthe hours immediately before loss

31 2 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 drillPre drill

22 ll ll 2.2. Install Install screw with screw with screw with screw with washerwasher

INSULATION ATTACHMENT

WINDOWLOCK GLAZING SYSTEM!

BEING VULNERABLE IS A CHOICE!

BUT DO THE FIXES WORK?

CHARLEY, FRANCES, IVAN, JEANNE!

Windstorm Loss from 2004 HurricanesWindstorm Loss from 2004 Hurricanes

, , ,

Impact of Nat Cat 600

700

Windstorm Loss from 2004 HurricanesWindstorm Loss from 2004 Hurricanes

Nat Cat Engineering = $430M

650400

500

600

s (U

S$M

) Benefit from risk improvement$430M

650

200

300

00

ross

Los

s

220

0

100G

"Modeled" Wind Loss Actual FM GlobalModeled Wind LossProjection

Actual FM GlobalGross Wind Loss

THE UGLIEST OF THE 3 SISTERS!

Hurricane Katrina (2005)

8001000

S$

49% reduction attributable to risk

improvement

985

505400600800

s Lo

ss in

US

Mill

ions

505

0200G

ross

M

P j t d L A t l LProjected Loss Actual Loss

ADD IN RITA, WILMA, GUSTAV & IKE!, ,

3.00

e

2.301.50

2.00

2.50

s/$1

00 V

alue

ents

)

84% reduction in average loss

0 370.50

1.00

Avg

Los

s (ce g

0.370.00Unimproved

LocationsImproved Locations

Average Wind Loss / $100 TIV

LET ME TELL YOU A STORY!

I t N d dImprovements NeededBldg 1 RoofBldg 2 Steel DeckBldg 2 Steel DeckImprove FlashingEmergency PlanEmergency Plan

Multi-million loss potentialpLose both roofsKey juice facility

CHOSE NOT TO BE VULNERABLE!

New Roof for Bldg #1New Roof for Bldg #1Improved Roof Fastening Bldg #2I d fl hi ll fImproved flashing on all roofs

Developed Emergency PlanHurricane ResponsepEmergency GeneratorsBusiness ContinuityBusiness Continuity

JUST A 2 DAY DISTRACTION - TWICE!

September 5 - Frances

September 26 – Jeanne

Roofs remained intact

Mi ll dMinor wall damage

Generators effectiveGenerators effective

No production interruptionp p

DISTRACTIONHurricane Frances & Jeanne (2004)

DISASTERHurricane 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 CHOICESTHE CHOICES

Disaster?

Distraction?

CLIMATE CHANGE

FloodFloodWindBushfiresSnow/FreezeSnow/FreezeTornado

WILD CARD: How much? How fast?

orr E

rro

ity

gin

fo

erab

il

Mar

g

Vuln

eV

CONTROL STRATEGY – NATURAL HAZARDS

Avoid the Zone!Avoid the Zone!

Choose not to be vulnerableBuild in resilience

Keep the water out or limit what gets wetFix the weaknessesBrace, anchor, be flexible, and use SGSV

Educate and train staffEducate and train staff

QUESTIONS?QUESTIONS?www.fmglobaldatasheets.comwww.approvalguide.comwww.approvalguide.com

Dennis Anderson, P.E.