What Is Demand Surge And Its Implications For Policyholders?

Demand surge is defined as the demand for products and services exceeding the regional capacity to efficiently supply them. This phenomenon is relevant for both Christchurch post earthquakes, and for the east coast of the USA post Hurricane Sandy. It is a common phenomenon around the world, post natural disaster. Demand surge is relevant to all affected policyholders in that the need for disaster relief and recovery supplies increases dramatically due to shortages and increased demand, forcing the cost of these goods upward as people rebuild. Post disaster insurance dollars pour into the affected region, but rebuilding is limited by materials and worker shortages. These in turn lead to rising wages and sometimes very substantial material price increases. Construction materials and costs (e.g. steel, timber, cement, building materials such as gib) are usually the most visibly effected by demand surge but energy prices for oil and gas may also rise.

Around the world demand surge post disaster can be seen whether the disaster is a result of flooding, windstorm, hurricane or earthquake. It is clear that the equilibrium of demand and supply becomes unbalanced. Examples of earthquake events that have seen demand surges were seen as early as the 1886 Charleston, South Carolina Earthquake (U.S.) which created a demand for labour that far exceeded the local supply. Wage rates for both skilled and unskilled labour increased dramatically above pre-earthquake levels. The heightened wages and labour shortage had a knock on effect and created a long waiting list for repairs which not only caused severe hardship for owners but increased the loss at the property (due to deterioration over time or further damage) which in turn led to shoddy and inadequate repairs. We are currently experiencing exactly this scenario in Christchurch. Without a strong mechanism for the control of construction quality, materials and labour pricing, residents face a frustrating time ahead.

In 1906 the San Francisco Earthquake and Fire (U.S.) presented other demand surge challenges. The construction costs increased immediately after the event and led to larger insured losses than expected. The capacity constraints for labour and material drive the price fluctuations and substantially increase reconstruction costs as the demand rises for building contractors to repair the damage. The increasing cost of repair work, because of the shortage of materials and labour, leads to higher claims. And the more widespread the damage the greater the price for the rebuilding resources. Consequently contractors raise their bid on reconstruction projects and this leads to incredible price increases, sometimes twice as high as they would have been in a competitive market.

During the 1994 Northridge earthquake (U.S.) there was a lack of claims adjustors in the local area so the insurers brought in people from other parts of the country and overseas. We too have experienced the same pattern. These adjustors typically were not suitably trained in the area of seismic damage and were not able to assess the quantum or seriousness of the damage adequately and therefore not able to price it adequately.

After the Newcastle earthquake in Australia rebuilding costs were said to increase by 35%. After Cyclone Tracey in Darwin, building costs increased by 75 %; the ACT bushfires in 2003, building costs increased by 50% between November 2002 and January 2003. Preliminary reports following Cyclone Larry in Queensland indicated that there was a significant increase in local building costs after the disaster; with insurers estimating building costs increasing by at least 50% immediately after the disaster.

Demand surge is a function of the size of the catastrophe: the larger the disaster and damage to property, the greater the magnitude of the demand surge. There is no doubt that demand surge is currently a factor here too. In addition a remote and isolated country like New Zealand, where supply and transportation prove difficult have been suggested as reasons for particularly large demand surge events. (See http://www.stuff.co.nz/business/4129260/Price-gouging-threat-to-recovery-economist).

The critical element here is how economically can reconstruction materials, labour, equipment and financing be brought to the affected area? These elements will physically effect the repair and rebuilding of Christchurch and all must be available locally when needed. If demand for labour exceeds supply then the labour force can and will command higher wages. (See http://www.stuff.co.nz/business/rebuilding-christchurch/7438808/Builders-wages-rise-faster-in-Canty). In addition the total amount of repair work in the region will also define the demand surge and the local building codes will determine the level of repairs required and the necessary skill of the labour force.

It is likely that insurers probably have not adequately accounted for changes in building code requirements (e.g. strengthened foundations) when determining the quantum for replacement of the property. In addition the reality of schedules and the ability to meet them will affect the amount of work required and the speed of the work to be performed – will also have a dramatic impact on the ultimate costs payable.

Delayed repairs will ultimately cost more because of the deterioration and additional damage to property as well as changes in the pricing of materials, labour rates and contractors overheads. Overseas experience shows that these surges can be as high as 70%. The efforts of local and national government will also affect the timing of reconstruction. In light of the fact that we have seen a very slow start to the recovery phase one might predict very large increases in demand surge as both residential and commercial reconstruction ‘ramp up’. Well done National!

So my message is – insurers have to battle with the uncertainty of demand surge on claim costs following disasters. They see themselves as having a legitimate interest to pay only the portion of the loss for which they have calculated and charged a premium. On the other hand policyholders have to ensure that these demand price surges are factored into their final claim settlement, otherwise they will be considerably out of pocket and find themselves potentially in a situation of being unable to afford to replace what they have lost.

The more reputable engineering firms and quantity surveyors have already begun to include pre and post tender escalation rates which reflect these surges. The figures are variable and will no doubt only continue to rise.

As an example – you lose your house in 2010 and a rebuild is not possible until 2015 and you have not factored in a demand surge % – then you will sustain a substantial loss and your total replacement policy will not deliver on its promises.

So the message is – do not fail to make a provision for the demand surge in your final settlement.

There were a series of earthquakes in New Zealand in 2010-2012. Demand surge played a major role in the repair and rebuild post-disaster. For more details read The Insurance Aftershock: The Christchurch Fiasco Post Earthquakes 2010-2016 by Sarah-Alice Miles. http://www.theinsuranceanalyst.com/my-book/

Article Source: http://EzineArticles.com/expert/Sarah-Alice_Miles/1447216


5 Keys to Successful SIP Implementation

Are you an entrepreneur? Then you have to develop yourself technologically to stay in the tough competition and grow bigger. You need systems through which you can reach your customers easily, make deals and increase the sales. SIP trunk is such a system which is build to deliver power of VoIP in order to meet the needs of different departments of your organization. This system is more advanced than old systems like dial-up connections or ISDN. It is also user-friendly.

What is SIP Trunk- Benefits

SIP is the abbreviated form of Session Initiation Protocol. This protocol is installed in an organization so that voice or video calls throughout the business house can be done effectively without any hazards. In this protocol, the telephonic conversations are transformed into data and those are delivered by using private or public IP network. There are lots of advantage of installing these trunking services-

1. Installing SIP protocol is a lot more cost-effective than the other systems. You can save up to 60% and use the money to meet other needs of a business organization.

2. Maintenance of SIP trunks is very easy as it is mainly virtual rather than physical.

3. You can always stay connected to your customers. So, you can expect a healthy professional relationship with them to grow your business.

4. Video calls, video conferencing, instant messaging, etc. all can be done easily by this.

Successful SIP Implementation

Establishing successful communication among the departments of your business house and with the customers is now easy with SIP trunk, but while installing you should remember certain matters-

1. Native SIP-

Ask the provider whether their network can deliver SIP end-to-end and also ask about the size of the local telephone number footprint.

You should check out whether the provider is patching up other networks as those won’t serve your purpose due to poor quality and cause more trouble.

You should also ensure that you are not paying for non-native SIP solution as it requires additional equipment’s and cost you more. Those may not offer as good service as native SIP.

2. Plan for Future-

Don’t fall for anything before knowing the needs of future capacity.

Take your time before installing so that you can get the accurate bandwidth to get quality service.

Talk to your data provider to make sure that the LAN is applications and voice capable.

3. Check out the Features-

Today, SIP trunk comes with wide range of features. You should talk to the provider before paying for it. Not only voice call, but also make sure you get facilities like unified communications, video, messaging, and conferencing and lot more.

4. Breaking Barriers-

Installing SIP trunk will break the ice between the workers of separate departments of your organization. And to make an overall connectivity, you should ask your provider to design it efficiently.

5. Alert the Stakeholders-

While installing a new system you should make your employees aware about the changes. There is no use of installing a newly featured VoIP system if the end-users don’t get the maximum benefit of it.

Article Source: http://EzineArticles.com/expert/Nick_A_Patel/1975836


Top 5 Colors of Kurtis to Own This Summer

Indian kurtis are a timeless fashion trend every season. They’re revered and cherished by fashion forward ladies across the globe, especially in the hot sultry summers due to their easy to carry properties. This summer season colours are going to traverse you to a sunnier place. As the sweltering hot weather sets in, soothing colours become a fad. From soft pastels to deep bright blues, cotton anarkali kurtis online shopping offers you a variety of colours to choose from. Here are the top 5 colours of kurtis you must invest in this summer!


What better than the most soothing colour to begin with! Whites are synonymous with peace, serenity and calmness. Many fancy kurtis online can be seen in whites and off-whites that reflect class. A simple kurti also becomes extremely graceful when deigned from a white fabric. Markets are flooded kurtis, suits, kurtas, skirts and tunics in shades of white, due to their soothing properties. This colour redefines the beauty of women in a totally altered context.


Pale yellows look utterly gorgeous and compliment the sunny days perfectly.

Nothing screams summer like a pale yellow cotton anarkali kurti. Yellow chanderi kurtis invoke a sense of warmth and vigour. It’s the happy and cheerful colour of the season. You can also shop for the brighter shades from the yellow family if you’re looking to make a bold style statement. Pair this shade with creamy and off-white colours for a sophisticated finish.


Pink is the power colour for girls. This feminine and chic colour represents youthfulness. A bold pink kurti is all that you need to turn heads and leave a lasting impression. While shopping for ladies salwar suits online, you’ll find pink in abundance and all for good reasons. You can also go for lighter pale pink which conveys serenity like a blushing cheek or a calm sunset. Kurtis and kurtas available in shades from the pink family look totally majestic like the culture of India. A pink kurti is best paired with whites and creams.


Kurtis and suit sets in striking shades of blue add a new dimension to your wardrobe. Cotton anarkali kurtis online in this shade are perfect for the days when you wish to dress it up and go all audacious for an evening look. You can also opt for lighter and softer hues of blue for a casual brunch look or college wear. This urbane and fun colour will take you from breakfast to bars effortlessly.


Burgundy is the colour for the lady with class and swank. Burgundy chanderi kurtis make an impeccable choice for a classy evening party or a gala. This colour can effortlessly turn any dull outfit into designer apparel that looks like straight out from a glam magazine. You can pair versatile burgundy kurtis with off-whites and soft cream colours.

Article Source: http://EzineArticles.com/expert/Sammy_D/2318579


Keeping Your Focus – How to Pay Better Attention to What You’re Doing

Do you have difficulty focusing on the task at hand – be it at work or home? This article shows how to focus vividly and get your work done.

Here are a few tips:

1) Why do you need to complete your task at hand? Will it have any desired outcome or bring any benefits. Understand the why of your task at hand and then you can focus better. For instance, if it is a household item you are cleaning and you are unable to focus, ask yourself why you are cleaning it at all. The answer may come in varieties. For example, “I like the house to be spick and span’ or “Guests will be arriving tomorrow at our home and I want them to see everything cozy, well-arranged and tidy.” Then you can focus better.

2) Chunk up your task into smaller ones. And then focus. You will find it manageable and it won’t loom large over you. Once you get your work done, you will be the one with the biggest of smiles.

3) Concentrate on your task for only fifteen minutes at a time. And you will see that it becomes possible. After every fifteen minutes, talk to a colleague at work or an available family member at home and distract yourself. Then go back to your task and focus on it. This way you will pay much better attention to your work and get it done even before the hot deadline.

4) Put on low volume melodious music in the background. If at work, put on headphones or if at home, let it be on air. And then focus on your work. With the melodious music beats reaching up to you, you will find a rhythm to focus on your task and you will not tire out. On the contrary, you will get the mojo of life, enjoying and completing your task at hand well enough.

5) Before touching the task at hand, have in mind how you will reward yourself after finishing it off – be it Starbucks coffee, a ride on the swings at a nearby park or shopping something special with a good friend or anything else for that matter. Once you have decided on the reward, keep it at the back of your mind and start focusing on your task happily. You will finish your task promptly because of your enthusiasm and also because of the promise of the reward you have decided to give yourself.

Summing up, these are five great ways to increase your focusing power on tasks at hand either at work or home. You not only complete them but enjoy fully while doing them and beyond. You will exude confidence and above all, happiness and jubilation will envelope you. What better way is there to make you feel this way?

Rosina S Khan has authored this article, highlighting a few tips on how you can pay better attention to your task at hand.

For a wealth of free resources based on stunning fiction stories, amazing self-help eBooks, commendable articles, quality scholar papers and valuable blogs, all authored by her and much more, visit: http://rosinaskhan.weebly.com. You will be glad that you did.

Article Source: http://EzineArticles.com/expert/Rosina_S_Khan/2054435


Learning More About the Terror Watch List

What a terrorist watch list is

The terrorist watch list is officially named the Terrorism Screening Database, which is run by the Terrorist Screening Center of the FBI. This database is the central repository of suspected, as well as known domestic and international terrorists of the country.

It consists of the names of alleged international terrorists given by the Terrorist Identities Datamart Environment that the National Counterterrorism Center maintains with regard to the US intelligence community, as well as security agencies with information about terrorists. It contains data on local terrorists that was presented by the FBI.

The database only has the information needed to identify terrorists and it does not contain any classified information on them concerning what they have done, or how they are being tracked. The Terrorist Identities Datamart Environment keeps classified information on foreign terrorists, whereas the FBI maintains that of the domestic terrorists.

How the terrorism screening database is used

Additional lists are produced based on the Terrorism Screening Database to serve different purposes. For instance, the No Fly and Selectee lists prevent certain individuals from boarding a flight or further scrutinize them. To be part of the No Fly or Selectee list, there should be other evidence on a person’s threat to aviation security, and clear identifying data is required beyond the usual reasonable suspicion.

The Known and Appropriately Suspected (KST) file is the other list derived from the Terrorism Screening Database. Clear identifying information is required to be added to the KST file. The National Instant Criminal Background Check System, which checks the purchases of firearms, questions the KST. Being included on the file does not prevent an individual from purchasing a gun, but marks the purchase to be further reviewed. The person is only allowed to buy a firearm if he is not a felon, fugitive from justice, illegal immigrant, mentally ill or banned from purchasing a gun due to other legal reasons.

Standard of proof required to be included on the terrorism screening database

To be included on the Terrorism Screening Database, government officials recommend a person whom, with “reasonable suspicion”, they believe to be engaged or aid in terrorist activities. However, there should also be an adequate level of identifying information to add the individual on the list. Legal battles on ways to be removed from the No Fly list have been going on and continue up to this moment.

Want to make sure you don’t meet the no fly list criteria and you won’t be denied boarding? Want to learn more about the USA no fly list? Come and visit our website today!

Article Source: http://EzineArticles.com/expert/Tippfein_Klaus/621206


Massage in Bucharest

Recognize it! You’re busy! And so must be! That’s what life is like! But you want more than that, you want to do more for yourself and massage can help. Because massage makes more than a simple relaxation of the mind and body. It keeps your body in shape and gives you enough energy to make you enjoy a longer life better than you do it today.

Massage releases stress. At the moment, stress is a universal evil. Every time you are late, every time you avoid a car in traffic, every time you have trouble working, stress is doing his job. Each time adrenaline increases heart rate and cortisone levels and organs respond to the measure. You will be in a state of nerves and constant agitation.
When there is no release of stress, serious problems such as an upset stomach, hypertension, sleep disturbances, chest pain, or existing illness may worsen.

Some of the changes that may occur are: Anxiety, lack of concentration, depression, permanent fatigue, muscle or bone pain, sexual dysfunction, excessive sleep or insomnia

All these stress-related problems can be diminished and some can be totally eliminated by massage. The researchers concluded that a massage session can lower heart rate and blood pressure, relax your muscles and increase endorphin production. The massage also releases serotonin and dopamine and the result is a general relaxation, both physical and mental.
Our body care must be at the top of the priorities.
By adding the massage to your routine you will look much better and you will be much healthier and relaxed. Massage can improve your vitality and mood. Massage can prepare for a long and beautiful life.

Our masseuses personalize each massage session according to the needs of the individual.
Our massage parlors offer a variety of relaxation styles and techniques to help you. Apart from relaxing, massage can be a powerful ally in reducing pain, increasing energy levels, improving mental and physical performance

We recommend : HotAngels , VipZone , JadePalace , ThaiPassion

After a massage session, you will see how the mental prospects are enriched, the body allows easier handling, better pressure resistance, relaxation and mental alertness, calm and creative thinking.
When you have the impression or force yourself to stay straight, your body is not actually aligned properly. Not only does the posture look bad, but it forces some of the muscles to go muddy all day, while others become weaker. After a long time, the incorrect position may cause other drops. For example, internal organs press on what affects digestion, breathing ability is also diminished, which means that much less blood and oxygen reaches the brain and hence all sorts of other complications.

Massage allows you to return your body to the track. Allowing the body to make healthy and accurate movements is one of the greatest benefits of massage. Massage can relax and restore muscles injured by bad posture, allowing the body to position itself in a natural, painless position.
Apart from posture, there is also anxiety. One of the signs of anxiety and stress can also be heavy breathing. When the body begins to breathe too little and deeply instead of breathing at a natural rithm, it is impossible for one to relax. One reason may also be that the chest muscles and the abdomen get tightened and the air gets harder.

Massage plays an important role in learning the body how to relax and how to improve breathing. Respiratory problems such as allergies, sinuses, asthma or bronchitis are a group of conditions that can benefit from massage. In fact, massage can have a positive impact on respiratory function.

Many of the muscles in the front and back of the upper part of the body are breathing accessory. When these muscles are tight and shorten they can block normal breathing and interrupt effective breathing natural rithm. Massage techniques for stretching and relaxing these muscles improves breathing function and breathability. Massage leads to an opening of the chest as well as structural alignment and nerve dilatation that are required for optimal pulmonary function. A good way to treat respiratory problems with massage is the taping made in Swedish massage. When done on the back, along with vibrations, it can detach the mucus from the lungs and can clean the airways for better later function.

Massage not only relaxes muscles, but helps people become aware of daily stress levels. Once the body recognizes what really means relaxation, the mind can rest easily relax before the stress becomes cornice and harmful. This will help you enjoy a balanced life. Massage controls breathing, allows the mind to re-create relaxation before the occurrence of chronic and harmful stress and increases the level of energy.