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U.S. disaster-response force stretched thin as hurricane season starts

A traffic sign warns of hurricane season in Stowell, Texas, U.S., June 12, 2018. Picture taken June 12, 2018. REUTERS/Jonathan Bachman

By Andy Sullivan

WASHINGTON (Reuters) – As Hurricane Irma bore down on Florida last September, the top U.S. disaster-response official ordered all hands on deck.

With 4,500 Federal Emergency Management Agency staffers already helping survivors of Hurricane Harvey in Texas, FEMA chief Brock Long told managers in an internal memo to ready every member of the agency’s on-call reservist workforce for deployment.

In the following months, thousands of FEMA reservists, who account for about half of the agency’s disaster-response personnel, would descend on Florida, Puerto Rico, California and elsewhere to help recovery efforts after an unprecedented string of natural disasters.

But not all would respond. About 500 reservists, or one of every twelve workers, ignored FEMA’s deployment request, current and former officials told Reuters.

“We didn’t even hear from them,” Patrick Hernandez, who oversees FEMA’s disaster workforce, said in an interview. “We need to get people in here who understand the system and adhere to the protocols.”

With the 2018 hurricane season already underway, FEMA is scrambling to hire more people who are willing to depart at a moment’s notice for assignments that can last months at a stretch.

Internal documents obtained through a Freedom of Information Act request show the agency’s disaster-response force is understaffed by 26 percent. And as last year revealed, many of those who sign up don’t always respond when needed.

That comes at a cost. At times, staffing shortages force FEMA to shuffle personnel from one disaster to the next and in some cases rely on workers who do not know how to do the job effectively, according to interviews with 15 current and former FEMA workers.

Some local officials say the agency’s central mission – getting federal aid where it is needed – is undercut by the constant turnover.

“They had no knowledge of the system. They had no knowledge about how to do anything but fill out forms,” said Junior Shelton, mayor of Central, Louisiana, which experienced catastrophic flooding in 2016. “We’re still sitting around waiting for that money to get here.”

Hernandez said staffing issues have not affected FEMA’s ability to get the job done. “I would not agree with that statement wholeheartedly,” he said.

FILE PHOTO: Representatives from FEMA speak with a resident of the Staten Island borough neighborhood of New Dorp Beach about registering with the agency for financial assistance to help recover from the storm surge of Hurricane Sandy in New York, NY, U.S., November 15, 2012. REUTERS/Lucas Jackson/File Photo

‘A VERY LOW NUMBER’

The extraordinary string of domestic disasters in 2017 continues to weigh on the U.S. agency. With thousands of workers still out in the field, official figures show that 33 percent of FEMA’s disaster-response workforce is available for deployment, down from 56 percent at this time last year.

Some specialties are stretched especially thin: Only 13 percent of the workers who direct federal aid to pay for rebuilding costs after a disaster hits are currently available.

“That’s a very low number, and that would be very scary going into more disasters,” said Elizabeth Zimmerman, a former senior FEMA official.

Unlike military reservists, those who work for FEMA don’t have a guarantee that their regular jobs will be available when they return home. As a result, most are retirees who don’t need steady work or recent college graduates who don’t yet have a full-time job, current and former managers say.

Reservists are allowed to turn down up to three assignments each year, meaning FEMA cannot count on a full reserve force during peak periods. According to internal figures, FEMA’s reservist corps has grown by roughly 1,000 workers over the past year. Still, it remains 3,700 workers short of the 10,949 reservists it has determined it needs to be able to respond to several disasters at once.

FILE PHOTO: Members of the Federal Emergency Management Agency (FEMA) Urban Search and Rescue team inspect homes and offer assistance, at Lee Hill Drive in Boulder, Colorado, U.S., September 16, 2013. REUTERS/Mark Leffingwell/File Photoe reservists say they are not in a position to accept months-long assignments far from their homes.

“I could get a phone call tomorrow telling me to go to Puerto Rico, but the truth is I’m not going to go,” said Alessandra Jerolleman, who said family obligations prevent her from leaving Louisiana.

FEMA officials point out they can pull in other types of workers when needed. Some 22,000 federal employees from agencies like the Defense Department participated in disaster-relief work with FEMA in 2017, for example.

“We rely on our reservists and we love them,” said FEMA’s Hernandez. “But FEMA’s made up of a lot of different elements.”

SECOND-CLASS CITIZENS

FEMA also hires residents of disaster zones to help out, a practice that is widely praised for boosting employment and harnessing local knowledge. But some say it can hinder FEMA’s effectiveness.

Carlos Mercader, Puerto Rico’s top lobbyist in Washington, said he received numerous complaints of poorly trained FEMA workers who assess damaged houses in a seemingly arbitrary manner. While one might be declared a total loss, another that appeared to suffer similar damage might be denied reconstruction assistance, he said.

Local hires accounted for more than half of the 2,878 FEMA employees in Puerto Rico in May, according to agency figures obtained by Reuters. Only 100 are permanent FEMA employees.

“They probably should be sending us more people with as much experience as possible,” Mercader said.

FEMA officials say Congress could help with recruiting and retaining reservists by guaranteeing they can keep their regular jobs while on assignment, as is the case with military reservists. Officials have also asked Congress to change hiring laws to give reservists preferential status when they apply for a full-time FEMA job.

Congress has yet to act on those requests.

But FEMA’s own actions may also drive away some who are willing to serve, reservists say.

Paul Seldes, 59, said he tried unsuccessfully since 2011 to find an assignment that matched his background in field operations.

Instead, the agency repeatedly asked him to report to a telephone call center to screen financial-aid requests from disaster survivors. By last fall, he no longer bothered to respond to such deployment requests, he said.

“I have this capability, I have this knowledge, I have this training – why don’t you want to listen to me?” he said.

(Reporting by Andy Sullivan; Editing by Kevin Drawbaugh and Paul Thomasch)

Uncovered losses hurt U.S. small business in wake of 2017 storms: Fed

FILE PHOTO: The corner stone of the New York Federal Reserve Bank is seen surrounded by financial institutions in New York City, New York, U.S., March 25, 2015. REUTERS/Brendan McDermid/File Photo

By Reade Levinson

(Reuters) – Small businesses in the United States struggled with uninsured damages and lost revenue following a record-breaking year of hurricanes and wildfires, according to a Federal Reserve survey published on Tuesday.

The report by the Dallas, New York, Richmond, and San Francisco Fed banks examined 1,800 businesses with fewer than 500 employees in zip codes with disasters designated by the Federal Emergency Management Agency. It found, 40 percent of small firms in these areas had natural-disaster related losses, and 35 percent lost more than $25,000 in revenues.

The report paints a worrisome picture for local economies after a record-breaking year of weather and climate-related disasters that cost the United States an estimated $306 billion in 2017, the third-warmest year on record, according to the U.S. National Oceanic and Atmospheric Administration.

To see the report, click here .

“Small businesses are primary drivers of job growth and their ability to rebound from disasters is critical to regional economic recovery,” said Claire Kramer Mills, assistant vice president at the New York Fed.

Small businesses employ half of private-sector workers and are the primary creators of new jobs in the United States, according to a 2015 U.S. Census Bureau study.

The survey found last year’s storms hit minority communities particularly hard. Some 54 percent of Hispanic-owned firms in affected areas reported natural disaster-related losses, compared to 40 percent of White-owned firms and 35 percent of Black or African American-owned firms.

The storms hit lodging and retail businesses hardest. Some 52 percent of leisure and hospitality firms and 47 percent of retail firms in affected areas reported natural disaster-related losses, the highest shares of all industries.

Small and young businesses are especially vulnerable to extreme weather and other natural disasters compared to their larger counterparts. Financing options are limited: federal relief funds can take months to reach communities and few small business are insured against such storms.

The report found firms’ insurance holdings did not match the sources of their losses, which stemmed more from disrupted business than from damaged assets. Sixty-five percent of disaster-affected firms cited loss of power or utilities as the source of their losses. However, only 17 percent of affected firms had business disruption insurance at the time of the disaster.

Federal Reserve Bank officials who worked on the report said local governments can help bridge this insurance gap by helping business understand their vulnerabilities and purchase the relevant coverage beforehand.

(Reporting by Reade Levinson in New York; Editing by Lisa Shumaker and Nick Zieminski)

U.S. Energy Department forming cyber protection unit for power grids

Former Texas Governor Rick Perry, U.S. President-elect Donald Trump's pick to lead the Department of Energy, meets with Senate Majority Leader Mitch McConnell (R-KY) on Capitol Hill in Washington, U.S. January 4, 2017. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) – The U.S. Department of Energy (DOE) said on Wednesday it is establishing an office to protect the nation’s power grid and other infrastructure against cyber attacks and natural disasters.

President Donald Trump’s budget proposal unveiled this week included $96 million in funding for the Office of Cybersecurity, Energy Security, and Emergency Response.

Energy Secretary Rick Perry said the DOE “plays a vital role in protecting our nation’s energy infrastructure from cyber threats, physical attack and natural disaster, and as secretary, I have no higher priority.”

Last July, the DOE helped U.S. firms defend against a hacking campaign that targeted power companies including at least one nuclear plant. The agency said that the attacks did not have an impact on electricity generation or the grid, and that any impact appeared to be limited to administrative and business networks.

The previous month, the U.S. Department of Homeland Security and the Federal Bureau of Investigation had issued an alert to industrial companies, warning that for months hackers had targeted nuclear reactors and other power industry infrastructure, using tainted emails to harvest credentials and gain access to networks.

In some cases hackers succeeded in compromising the networks of their targets, but the report did not identify specific victims.

Nuclear power experts, such as Dave Lochbaum at the Union of Concerned Scientists nonprofit group, have said reactors have a certain amount of immunity from cyber attacks because their operation systems are separate from digital business networks. But over time it would not be impossible for hackers to potentially do harm, he said.

(Reporting by Timothy Gardner; Editing by Jeffrey Benkoe)

Insurers to pay out record $135 billion for 2017 after hurricanes

By Tom Sims and Alexander Hübner

FRANKFURT/MUNICH (Reuters) – Insurers will have to pay claims of around $135 billion for 2017, the most ever, following a spate of hurricanes, earthquakes and fires in North America, according to a report published on Thursday.

German reinsurer Munich Re , in its annual natural catastrophe review, also said last year’s total losses, including those not insured, were $330 billion, the second-worst in history after 2011 when an earthquake and tsunami wreaked havoc in Japan.

Although individual events could not be linked directly to climate change, global warming is playing a role, Munich Re said. It expected more frequent extreme events in future.

“We have a new normal,” said Ernst Rauch, head of Munich Re’s Corporate Climate Center, which monitors climate change risks.

“2017 was not an outlier,” he said, noting insured losses have surpassed $100 billion multiple times since 2005. “We must have on our radar the trend of new magnitudes.”

Last year’s hurricanes Harvey, Irma and Maria in the United States and Caribbean, wildfires in California and earthquakes in Mexico destroyed homes, infrastructure and numerous lives.

The disasters also rocked global insurers. Munich Re and Hannover Re both issued profit warnings.

That dealt a blow to a sector already struggling with thin margins, stiff competition and falling prices.

Munich Re’s tally for the industry comes on the back of other estimates that underscored the severity of 2017.

In December, Swiss Re estimated global insured losses from catastrophes would hit $136 billion in 2017, the third-highest on record for the sector, with the United States hardest hit. That figure is not directly comparable to Munich Re’s estimates as it includes man-made disasters.

Reinsurers, which are in the business of insuring insurance, are experts in managing risk and rarely get caught off guard. Analysts have said reinsurers may need to take a fresh look at their risk models as the planet warms and storms become more intense.

A big question for the industry has been whether the run of catastrophes would allow them to achieve higher prices for their coverage, which have been in decline for years.

Early indications suggest modest increases. Global property reinsurance prices rose less than expected in the key Jan. 1 renewal season, with strong competition limiting increases to single digit percentages, brokers said this week.

A turnaround in prices would be the first major reversal since Hurricane Katrina in 2005.

(Editing by Maria Sheahan and Mark Potter)

Insurance could cut $29 billion natural disaster bill for poor nations

LONDON (Reuters) – New types of insurance could cut the costs of natural disasters for poorer countries and reduce the amount of humanitarian aid needed, according to a report commissioned by Britain’s international development ministry.

The cost of natural disasters to some of the world’s poorest countries has averaged a total of $29.1 billion a year in the past 15 years, catastrophe modeling firm RMS said.

While aid has covered 8 percent of this, insurance has only paid for 3 percent of the average costs of earthquakes, drought or floods in 77 low and low-middle income countries, or $900 million, but could cover up to $6.8 billion if more insurance structures were used, RMS said in the report prepared for Britain’s Department for International Development.

Britain said at last weekend’s G20 meeting it would set up the London Centre for Global Disaster Protection to help developing countries use insurance to cut disaster costs.

“There is clear potential for insurance to both reduce the shortfall in funding for natural disaster losses in low and low-middle income countries, and to relieve pressure on humanitarian aid budgets,” RMS said.

This includes using so-called “parametric” structures, where insurance payments are triggered by a predetermined factor, such as an increase in water height, at a specified location.

Such models are used in existing insurance facilities such as African Risk Capacity and make payments more effective.

On a disaster loss of $30 billion, every dollar paid out through parametric insurance has the same impact as $3.50 of slower-moving aid payments, RMS said.

“It’s not just about speed, it’s about certainty,” said Daniel Stander, global head of the firm’s public sector group, adding that parametric insurance enables countries to know in advance how much money they will receive in a disaster.

(Reporting by Carolyn Cohn; Editing by Alexander Smith)

Facebook creates ‘Community Help’ feature for disaster assistance

By David Ingram

(Reuters) – Facebook plans to add a feature on Wednesday to make it easier for people affected by disasters to find each other locally to provide and receive help.

The world’s largest social network said its “Community Help” will activate after natural disasters and major accidents as a part of “Safety Check,” a related feature that allows Facebook users to assure others that they are safe.

The company’s designers envisioned a virtual classified advertising section where people near each other can offer shelter after a forest fire, seek food in the wake of an earthquake and meet other immediate needs in an organized way.

“It’s going to help easily match people who are looking to help with those who need help within the community,” Preethi Chetan, a Facebook product designer, told reporters in a briefing.

Facebook, with 1.9 billion monthly users as of December, rolled out Safety Check in 2014. The feature has sometimes stumbled.

Last year, after a suicide bombing in Pakistan, users as far away as New York received notifications asking if they were safe. Others said they were alarmed by vague text messages to mobile phones that asked, “Are you affected by the explosion?”

Safety Check was used for the first time in the United States in June after a gunman massacred 49 people at a nightclub in Orlando, Florida.

In designing Community Help, Facebook officials said they consulted with emergency relief organizations such as the Red Cross.

Community Help will at first be used for natural disasters and incidents such as building fires, not for mass shootings or bombings, the company said. Initially it will be available only in the United States, Australia, Canada, India, New Zealand and Saudi Arabia, it said.

Facebook said it plans to expand to other countries and other types of incidents after testing.

The new feature comes with a few safety guidelines, such as a warning to users that if they meet strangers to arrange disaster help, they should do so in a public place, officials said.

(Reporting by David Ingram in New York; Editing by Dan Grebler)

Are U.S. public schools prepared for an emergency?

By Lisa Rapaport

(Reuters Health) – More than a fifth U.S. school districts lack comprehensive plans to respond to natural disasters, epidemic diseases or other emergencies, a new report finds.

While almost 80 percent of school districts nationwide have plans to help students and staff with special needs during an emergency situation, only about 68 percent have protocols to reunite children with their families after disaster strikes, according to the report from the U.S. Centers for Disease Control and Prevention (CDC).

Roughly 69 percent of school districts have procedures set up to cope with pandemic influenza or other infectious disease outbreaks and to offer mental health support to students, faculty and staff after a crisis, the report also found.

“Schools have direct contact with approximately 95 percent of America’s children between 5 and 17 years of age, for about six hours a day, and are active partners in infectious disease prevention and control and in the unfolding of any emergency event such as floods or hurricanes,” said lead report author Brenda Silverman of the CDC.

“Because children are separated from their caregivers while attending school, school preparedness plans need to reflect children’s unique needs with an emphasis on family reunification,” Silverman added by email.

To assess emergency preparedness, CDC researchers examined 2012 survey data on health policies and practices at about 700 school districts nationwide.

Respondents were asked whether the school district required schools to have a comprehensive plan in place to address four specific topics: family reunification, infectious disease outbreaks, provisions for people with special needs and mental health care after a crisis.

On all fronts, urban school districts were more likely to require plans than their rural counterparts.

Overall, districts in the Midwest were less likely to require schools to include specific topics in their crisis preparedness plans than districts in the Northeast and South.

Districts were less likely to coordinate emergency plans with families than with local law enforcement and emergency service providers, the report found.

About 43 percent of districts nationwide collaborated with families to develop preparedness, response and recovery plans.

Almost 95 percent of districts partnered with law enforcement, however, and 92 percent coordinated with fire officials.

While about 83 percent of districts coordinated with local emergency medical service providers, just 41 percent collaborated with a local hospital and 66 percent partnered with the local health department.

One limitation of the report is that the survey included “yes or no” responses that didn’t leave room for districts to explain the relevance of certain topics in their preparedness plans or identify areas for improvement, the authors note.

In addition, because the survey is only done every six years, it’s possible that the data from 2012 doesn’t reflect current practices or policies.

Still, the findings suggest that at least some school children may be vulnerable in an emergency, said Dr. Laura Faherty, a pediatrics researcher at RAND Corporation in Boston who wasn’t involved in the report.

“Schools are where kids spend the majority of their day, but they don’t exist in isolation,” Faherty said by email. “Coordination among health departments, healthcare settings, law enforcement, first responders, mental health and social services agencies, as well as families, is critical to making sure children are as safe as possible.”

The results of poor planning can be dire, said Dr. Daniel B. Fagbuyi, a researcher at George Washington University in Washington, D.C., who wasn’t involved in the report.

“When schools aren’t fully prepared for a disaster life altering consequences may occur including increased morbidity and mortality,” Fagbuyi said by email. “Conversely, disaster preparedness activities at the school and in collaboration with community and parents fosters confidence, community resilience and can save lives.”

SOURCE: http://bit.ly/2cmM426 Morbidity and Mortality Weekly Report, online September 16, 2016.

Natural disasters in China kill more than 800 since June

Flooding in China one of the many natural disasters

BEIJING (Reuters) – More than 800 people have died and about 200 are missing in a series of natural disasters that have struck China since June, the worst casualty figures since a similar period in 2011, state media said on Tuesday.

Large parts of central, eastern and northern China have been hit by flooding this summer, while a typhoon left a wave of destruction this month and a freak tornado killed at least 98 in the eastern province of Jiangsu in June.

Since the year began, 1,074 people have died in natural disasters, 833 of them since June, with 270 missing, Xinhua news agency cited the Ministry of Civil Affairs as saying.

Direct economic losses have reached 298 billion yuan ($44.63 billion) this year, with about 400,000 houses destroyed and 6.24 million residents relocated, the ministry added.

Separately, the government on the southern island province of Hainan issued a typhoon warning for a tropical storm that is expected to hit in the early hours of Wednesday.

($1=6.6769 Chinese yuan renminbi)

(Reporting by Ben Blanchard; Editing by Clarence Fernandez)

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