Foundation RGB 66/70/76

Teal RGB 12/196/182

Lilac RGB 165/159/206

Olive RGB 128/138/0

Ocean RGB 106/163/203

Coffee RGB 183/147/122

Sand RGB 214/211/202

Peach RGB 255/150/126

Red RGB 237/28/36

Pink RGB 255/51/102

Yellow RGB 255/234/100

Black RGB 0/0/0

Cream RGB 255/252/227

Best Practices on Flood Protection,

Prevention & Mitigation

Farzina Coladon

Underwriter – Fine Art & Specie Insurance

XL Catlin

May 23rd 2018

1

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 Definition of Flood:

Overflow of inland or tidal waters;

Unusual or rapid accumulation or runoff of surface waters

from any source;

Mudflow; or

Collapse of subsidence of land along the shore of a lake or

similar body of water as a result of erosion or undermining

caused by waves or currents of water exceeding

anticipated cyclical levels

2

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 Underwriting Concerns:

Items in storage

Smaller facilities (museums, galleries)

Basement storage

3

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 Hurricane Sandy - 2012

For 7 days, Hurricane Sandy (always remembered as “Superstorm Sandy”

pounded the Caribbean and US East coast with punishing rain, wind and waves

Ranks as the second-costliest storm on record at US $68 billion

Seawater surged over lower Manhattan’s seawalls and highways and into low-

lying streets; water inundated tunnels, subway stations and the electrical system

that powers Wall Street

Flooding in the Chelsea district of Manhattan, where many New York art galleries

are located

4

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227

5

The Impact of Sandy

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227

6

Sandy continued…

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227

7

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 Alberta Floods - 2013

The most destructive flood in the history of the province

began on June 20th 2013

Insurable damages with costs estimated at CAD $1.7 billion

Mud-soaked galleries, water-filled studios and damaged

interpretive displays

8

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227

9

Alberta Flood Damage

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227

10

Flood Hazard Interactive Maps

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 Impact on the Fine Art Industry

Approximately USD $200 million to $300 million of art

losses post-Sandy

Some insurers will no longer insure art that is kept in

basements in Chelsea

Impact of Sandy was global as collectors from around the

world had art in New York – on consignment to galleries or

stored ahead of the fall auctions

Galleries and their warehouses 20 miles apart sustained

damage from the same flood

Insurers are adjusting their underwriting

11

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 Take a Proactive Approach

Be reasonable to storm warnings

Artworks displayed on the wall should be at least 4-5 feet above the floor

Pay special attention to outdoor art

Don’t utilize the basement area as storage; place items on tables

Routinely inspect your pipes

Any equipment/technology should be kept at least 4-5 feet off the floor

Prepare an emergency disaster plan

12

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 When Disaster Strikes:

Call your broker and/or claims representative at the

insurance company for guidance

Have a conservator on stand-by

Keep an inventory handy

13

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 Contact Information – XL Catlin

Farzina Coladon

Underwriter – Fine Art & Specie Insurance

Email: farzina.coladon@xlcatlin.com

Phone: (416) 342-8694

14

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227 We’re recognized for our client focus

15

XL Catlin received the highest numerical score among 11 insurers in the J.D. Power 2016-2017 Large Commercial Insurance Studies. 2017 study based on 2,218 total responses, measuring the

opinions of risk professionals in the U.S. and Canada with commercial insurers, surveyed April – June 2017. Your experiences may vary. Visit jdpower.com

“Highest Customer Satisfaction among

Large Commercial Insurers,

Two Years in a Row”

© 2018, XL Group Ltd. All rights reserved.

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227

© 2017, XL Group Ltd companies. All rights reserved. 16

THANK YOU!

Foundation

RGB 66/70/76

Teal

RGB 12/196/182

Lilac

RGB 165/159/206

Olive

RGB 128/138/0

Ocean

RGB 106/163/203

Coffee

RGB 183/147/122

Sand

RGB 214/211/202

Peach

RGB 255/150/126

Red

RGB 237/28/36

Pink

RGB 255/51/102

Yellow

RGB 255/234/100

Black

RGB 0/0/0

Cream

RGB 255/252/227

XL Catlin is the brand used by XL Group Ltd’s (NYSE:XL), insurance and reinsurance subsidiaries.

These provide property, casualty, professional and specialty products to industrial, commercial and

professional firms, insurance companies and other enterprises throughout the world.

XL Catlin’s insurance companies offer property, casualty, professional and specialty insurance

products globally. Businesses that are moving the world forward choose XL Catlin as their partner.

To learn more, visit xlcatlin.com/insurance.

XL Catlin’s reinsurance companies are among the world’s leading reinsurers. They offer products that

include aerospace, property, casualty, marine and specialty. The world’s top insurers choose us to

help move their businesses forward. To learn more, visit xlcatlin.com/reinsurance.

We are the organization clients look to for answers to their most complex risks and to help move

their world forward. To learn more, visit xlcatlin.com.

17

About XL Catlin