Lessons from Down Under

During the month of February 2009, I had the pleasure of visiting New Zealand and my homeland of Australia. In that month, there were catastrophic events in Australia that I believe are worthy of noting, because they highlight the importance of adjuster empathy when adjusting claims in disaster situations. They are also instructive in light of recent reports of wildfires in Western Canada earlier this year. Canada can learn some valuable lessons from events in Australia, including the importance of preventative measures such as controlled burns.

Around the time of my visit to Australia, Tropical Cyclone Ellie in early February was responsible for torrential rains in Northern Queensland on the Northeastern coast of Australia. As a result of the rains and overflowing rivers, these towns were disaster areas, as the only entry was by helicopter or boat. Residents of many towns were trapped in their houses for weeks. The Australian government had arranged for emergency assistance to the stranded home and property owners. Insurance coverages in these circumstances have been minimal because of the peril of flood not being indemnified under many of the insurance policies.

I was in Western Australia on Feb. 8, 2009 when I learned of the worst peacetime disaster in Australian history. On Feb. 7, bushfires in Victoria were responsible for the destruction of many towns northeast of Melbourne, including Marysville, Kinglake, Narbethon, Strathewen and others. The loss of life was horrific. Two hundred and eighteen people lost their lives. Seventy-eight individual townships were badly affected by the fires, some being completely destroyed. In excess of 3,000 homes and structures were destroyed and 7,500 people were left homeless.

The towns of Marysville and Kinglake (both less than 90 kms from the city of Melbourne) were incinerated in 30 minutes during the inferno, which was emitting radiant heat in excess of 1,500 degrees and being fanned by 65 km-h winds. As described in an article from the Melbourne Herald Sun newspaper on Saturday, Feb. 14, “the roar will be likened to jet planes and freight trains. There will be reports of the sorts of fire bowls that that visited Dresden and Tokyo during World War Two. Embers will swirl like lit matches in a clothes dryer. Lawn mowers will explode, tires will pop, gas tanks will blow and 30-metre gum trees a metre wide will be ripped out of the earth. People will draw smoke for their last breaths and perhaps wonder how and why they could be taken so fast. Some, it seems, will fall where they stand, to resemble those petrified bodies at Pompeii.”

Wildlife losses in the bush during the fires were in the thousands. Who can forget the worldwide television coverage of the koala with burned paws being comforted by a fire fighter and given water? Koalas rarely drink water. This little guy was so dehydrated he drank two bottles.

On reaching Melbourne on Feb. 11, smoke could be seen in the air. The general parching of the ground was noticeable as a result of the heat wave that had reached temperatures of 47 C. Many of the fires were still burning out of control and other towns were threatened. Fortunately, due to the actions of the firefighters and favourable weather conditions, the crisis was defused.

During the height of the bushfires, the Melbourne Age had reported that the residents had the right to “save life or fight for property.” One reported case — there were hundreds like it, although some were not as lucky — told of a husband, wife and their twin nine-year-old boys following their fire plan. As the blaze approached their property, they got in their vehicle and left. A few kilometers down the road, the husband decided to go back, saying to his wife: “We don’t have enough insurance,” and decided to save what he could of the property. Cinders were raining down on the vehicle at that time. The wife and children drove on through the smoke. Visibility was almost non-existent during the terrible drive and the wife could hardly recognize the bends in the road. At a dark moment, one of the boys asked: “Are we all going to die, Mommy?” Fortunately, they were able to safely reach another town that was not so affected. Shortly afterward, they were reunited with the husband. Their property had been totally destroyed.

Insurance losses are believed to exceed $1.5 billion Australian. People in Australia and other countries contributed to the Red Cross Bushfire Fund to help all of the people affected by the bushfires. Experts have suggested the causes of the fires were due to the following:

• high temperatures up to 47 C;

• years of drought;

• low humidity;

• lack of controlled burn-offs to clear fuel sources such as shrubs, leaves, etc.;

• high winds;

• arson; and

• climate change.

To a lesser degree bushfires are a problem in Northern Ontario and Western Canada as well. Some causes of these fires are similar to the ones listed above, although drought and high temperatures are not usually involved. Having said that, future climate change may alter the situation. In addition, a lack of controlled burn-offs to clear fuel sources in Canadian forests could lead to unnecessary hazards. Hopefully we in Canada will be able to apply lessons learned by authorities during the catastrophes in Australia.

The Australian tragedy was of particular concern to me, having lived and gone to school in Melbourne, and having adjusted bush fire claims in the past. These claims present many challenges for adjusters, particularly on the “human” side: it requires a great degree of social skill to deal with insureds who have lost everything — including, in many cases, members of their family. Empathy, compassion and a sense of sorrow are necessary, together with the ability to impart a feeling of cooperation and assistance to those involved.

When I was in school in Australia, every school student was familiar with a poem by Dorothea McKellar. The name of the poem is ‘My Country.’ An extract is as follows:

“I love a sunburnt country,

A land of sweeping plains,

Of ragged mountain ranges,

Of droughts and flooding rains.

I love her far horizons,

I love her jewel-sea,

Her beauty and her terror —

The wide brown land for me!”

The events in Australia during February 2009 were certainly due to “her terror.” With all of the technology and knowledge available to us, when confronted by the dark side of ‘Mother Nature,’ we are powerless to prevent the result.