Welcome to the Verisk / ISO WebEx. Please mute your handset. To

Welcome to the Verisk / ISO WebEx. Please mute your handset. To ask
a question, please send an email to: [email protected]. All questions
received will be reviewed at the conclusion of the presentation.
Special thanks go out to Thomas Hughes at PEMA for arranging the
presentation today.
Materials contained herein will be available at the conclusion of the
presentation.
BCEGS Program - Overview for SHMO’s
Presenter:
Mr. Dale K. Thomure, CBO, CFM
Community Hazard Mitigation Manager
ISO – Commercial Property
Today’s Presentation
 2016 PDM Grant Program

BCEGS as a prioritization criteria
 What is ISO?
 The BCEGS program
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Origins of the program
Key program elements
Grading schedule
 Procedures to obtain BCEGS classifications for grant
applicants
 Questions
National BCEGS Data Application
FEMA PDM Grant Programs
 Part of Hazard Mitigation
Assistance (HMA)
 BCEGS Classifications used to
prioritize applications.
ISO is part of Verisk Analytics, Inc.
 Leading supplier of
 Statistical
 Actuarial
 Underwriting
information
 Standardized
coverage forms
 Class & rating
programs
 Licensed rating
organization
 Advisory services
 Large private database
What is ISO?
• Rating Organization
• Provider of risk-decision analytics to the insurance
industry.
• Approved in all 50 states – Programs vary
• ISO’s history can be traced back to 1866 and the
National Board of Fire Underwriters.
• ISO formed in 1971
• Subsidiary of Verisk Analytics, Inc.
• Verisk formed in 2008
ISO – Community Mitigation Programs
Public Protection Classification (PPC™) Program
Building Code Effectiveness Grading Schedule
(BCEGS)
Specific Commercial Property Evaluation Schedule
(SCOPES)
*FEMA/NFIP Community Rating System (CRS)
* Administrator of program
What is BCEGS?
 An Insurance Rating Program
 Measures resources and support made available to the enforcement of
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building codes and the utilization of those resources.
 Objectives:
 Improved enforcement of building codes
 Better catastrophe-resistant buildings
 Reduce insurance losses.
Born from high-loss events in 1992 and 1994.
Modeled after the PPC ( Fire Rating) Program.
Created as a cooperative effort between government and industry.
Implementation started in 1995.
Approved or licensed in all 50 states.
 Bureau States (States use BCEGS on their own)
 State Filings (ISO administers the program)
BCEGS Schedule
 Second Edition
8
Origins of the BCEGS Program
Historic Catastrophe Losses
1992 – Highest Loss Year to Date
Total losses of $23 Billion
Hurricane Andrew – $15.5 Billion
1994 – Next Highest Loss Year to Date
Total losses of $17 Billion
Northridge Earthquake – $12.5 Billion
Studies Indicate Preventable Losses
Studies of various catastrophes, including Hurricane Andrew and the
Northridge earthquake, graphically demonstrate that effective building code
enforcement reduces loss in catastrophic events.
 Best’s Review
 Factory Mutual Insurance Group
The BCEGS Concept
 Future projections of increased exposure to catastrophe loss.
 Industry perceived a problem but also a means to address it in
the effective enforcement of building codes.
 Old logic of “Code on the books” no longer valid.
 Evidence that the Code works:
 Study of Damage from Singular Events
Hurricane Alicia (TX) vs. Hurricane Diane (NC)
 35% of Buildings Destroyed Vs .3%
 35% Buildings with Major Structural Damage Vs 4.5%
BCEGS Development Group
• Industry solution to the problem of catastrophe loss.
Development started in 1992.
• Joint effort
• ISO
• Insurance industry
• IIPLR (now IBHS)
• Model code groups: BOCA, ICBO, SBCCI (now ICC)
• 1500 Community building officials
BCEGS Development Process
 1994 program testing completed
 1995 pilot program
 154 communities in FL, GA, NC and SC.
 State approval of the schedule
 Program launched in selected states in 1995
 Roll-out based on hazards
BCEGS Schedule
 Current edition – 2003 with
subsequent updates
 Filed as the guide for the program
 Establishes minimum requirements for
program inclusion
 Describes each creditable item or
activity
 Designates point assignment to each
item or activity and rules for calculation
of credit
Minimum Schedule Criteria
Communities eligible to participate in the BCEGS
program must meet these minimum criteria:
 Organization
 Code adoption
 Plan review
 Inspections
 Staff training
Key Sections of the BCEGS Schedule
Section I: Administration of Codes – 54%
Overview:
 Adoption of building codes
 Training of staff
 Certification of staff
 Incentive programs
 Building official qualifications
Section II: Plan Review– 23%
Overview:
 Staffing
 Qualifications of plan review staff
 Detail of plan review
 Quality assurance
Section III: Inspection – 23%
Overview:
 Staffing
 Qualifications
 Level of detail of inspections
 Final inspections and occupancy permits
 Quality assurance
Classification Format
 The schedule is a point-based system – 100 point scale
 Communities are rated on a 1-10 scale
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Reclassification every 5 years
 Class 99 communities
 No department
 Not creditable
 Refused to participate
 2 separate classification categories for each community
 Personal lines (residential) - PL Class 1-10 or 99
 Commercial lines - CL Class 1-10 or 99
 Classifications are delivered in a xx/xx format with a date
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For Example: Anytown, PA - 4/4 2012
BCEGS Scores Across the Nation
What do the Scores Mean?
Classes 1 to 3 (approximately 21% nationwide)
 Adopted model code – Unamended, latest edition (within 5 years)
 Exceptional staffing levels based on workloads
 Staff education and certification at very high levels
Classes 4 to 6 (approximately 58% nationwide)
 Adopted model code – Unamended, latest edition (within 5 years)
 Strained staffing levels for plan review and/or inspection
 Staff education and/or certification at minimal levels
Classes 7 to 10 (approximately 21% nationwide)
 Adopted model code – Amended to weaken and/or older editions
 Inadequate staffing levels for plan review and/or inspection
 Inadequate education and/or certification at minimal levels
BCEGS Scores Across the Nation
Commercial Lines
40.00%
34.0%
30.00%
20.00%
18.2%
18.0%
14.0%
10.00%
5.9%
3.1%
2.5%
0.1%
2.8%
1.3%
0.00%
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BCEGS At‐A‐Glance
Classifications covering approximately 17,000 unique departments
that are protecting 20,000 communities the population of which
comprises 87% of U.S. population.
Each BCEGS survey
collects 1,243 individual data
points – The BCEGS database
contains over 43 Million
individual data points.
BCEGS Benchmarking Report
 Provided to every department
 Unique customized report
 Background information
 Code adoption
 Training and certification
 Staffing levels
 Point analysis
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Trends
 Natural hazards – AIR profiler
 Peer comparisons
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County
State
Nation
Classification Information
 Classifications are provided to each community at the conclusion of
the grading process, normally within 45 to 60 days following the
meeting.
 Classification letter to the highest official
 Benchmark Report Data
 Classification Manuals and Insurer-Facing Database
 Classification information is confidential and proprietary.
 ISO can not disclose community information to outside parties.
Community officials can share the class information that they have
received, subject to local law.
How to obtain class data
 ISO will provide specific classification information to any graded
community, upon written request.
 Agencies must have written individual community authorization to
obtain classifications.
 Agencies are encouraged to contact the community building
official first as they may have the information.
 To obtain a community classification, a community or
agency official must send an e-mail to: [email protected]
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E-mail must be from the community server address
ISO will verify the requestor and respond
Agencies must provide the written authorization
 Requests for classifications will be answered in the order
received and will be returned promptly via e-mail. ISO is aware of
the tight grant window and will make requests a priority.
What if my community does not have a BCEGS score?
 As the program is voluntary, some communities may not
have a classification.
 Bureau States: WA, ID, HI, LA, MS
 ISO contacts communities and invites participation once
every 3 to 5 years.
 Any community can request a classification visit by
contacting: [email protected] or by calling 1-800-444-4554 –
option 2.
 As BCEGS is funded by participating insurers, there is
no cost to the community.
What is ISO’s involvement in the grant approval process?
ISO will verify all BCEGS classification data in the
applications for funding, based on submittals from
FEMA HQ – following the initial ranking.
isomitigation.com
BCEGS National Report
• First-ever report to industry
• A first for ISO BCEGS program
• Report on the state of building code
adoption and enforcement in the
nation on a state-by-state basis
• Utility for SHMO’s
• Value for mitigation planning
• Available via the isomitigation.com
website free of charge
Questions?
To ask a question, please send an email to: [email protected]. All
questions received will be reviewed at the conclusion of the presentation.