Tag Archives: police

How to Picture the Future of Driverless

Picture this:

The year is 2025. A call comes to the police station—someone has broken into a local home. A drone is deployed to the address and arrives within five minutes. The drone feeds video to the station and to the closest autonomous (driverless) police vehicle. The drone guides the police car to the location. The officer in the car (we’ll assume he’s human, for now!) isn’t actually driving; he’s an occupant, watching the drone’s video feed. He can see the suspect fleeing, and he researches other crimes in the neighborhood along with potential suspects. The drone estimates the perp’s height and weight, and the officer can see his clothing and a possible gun in his belt. The police officer communicates with other officers in the area to coordinate the capture. As the suspect runs, his description and location is fed constantly to all nearby police vehicles, and he is surrounded within 15 minutes of the initial call.

This is far from fiction. The international consulting firm Frost and Sullivan predicts that 180,000 driverless cars will hit the U.S. market in 2020. That’s less than 1% of today’s annual new car market, but that’s just the beginning!

Just about every major car manufacturer (as well as Google, of course) is developing autonomous vehicles, and the competition is getting  more intense as the demand for collision avoidance features grows. Just as drones are spreading (if not yet regulated), driverless cars will become widely accepted. Americans love to drive, but there are too many undeniable advantages to autonomous cars.

The first one is safety. According to the U.S. Insurance Institute for Highway Safety  (IIHS), 94% of all car accidents are caused by human error. Nearly two million crashes could be avoided if human error were eliminated. That’s not to say that driverless vehicles won’t crash, but, as the technology improves, crash rates will drop like a rock. In 2025, if our roads are still packed with commuters, the occupants of many vehicles will be reading, answering emails, video conferencing and browsing the web. In other words, they’ll be working. A recent Morgan Stanley report predicted that driverless cars could add $5.6 trillion (yes, with a ‘T’) to the global economy because of the combination of a steep reduction in accidents and the dramatic increase in productivity. It is estimated that in 2035 autonomous cars will account for 25% of all cars.

Back to the police force. As driverless cars evolve, routine traffic monitoring will drop, high-speed chases will slowly decline (with drone help) and smaller police forces will focus on more serious crime. Cameras will capture everything—both from the ground and the sky. Officers will become highly trained in electronic law enforcement. Efficiency will rule!

Of course, these are just predicted outcomes. This policing panacea isn’t all roses; it will not eliminate the need for community relationships, direct contact with neighborhoods and personal contact in law enforcement. Furthermore, while vehicle collisions will fall, the cost and maintenance of autonomous cars will remain extremely expensive in the near future. Currently, it costs about $150,000 to equip a driverless car. But that cost will drop to $7,000 by 2030 and to $3,000 by 2035.

Nothing’s perfect. Every emerging concept or technology brings unexpected challenges and unintended consequences. But it appears that autonomous automobiles will emerge soon, and it’s likely that some day we’ll say they are “here to stay.”

For today, I guess I’ll have to drive myself home. What a chore.

Verified Burglar Alarms Reduce Losses

At a recent International Security Conference (ISC) law enforcement seminar, Chief Chris Vinson of the Texas Police Chiefs Association explained why verified burglar alarms work better: “We will give [them] the priority response [they] deserve. We will arrive on the scene in time to make an arrest. And making those arrests [is] what it is all about because when you increase arrests, you reduce the crime rate. When you reduce the crime rate, you are reducing property loss. When you reduce that property loss, it reduces the insurance rate for those property owners. When those insurance rates drop down [and] the crime rates drop down, then the property values go up, which makes our constituents happy.”

The burglar alarms matter so much because, with a video-verified burglar alarm, an operator at a central station can review on video what is happening at the site before calling 911 center. The operator serves as a virtual eyewitness to a crime in progress. And, when police are sure a crime is being committed, they respond faster and make more arrests.

(To see an excerpt from the seminar, click here:  https://www.youtube.com/watch?v=nX3IzynaUUY)

A recent meeting between several of the major alarm companies and Verisk discussed how best to collect and quantify the advantages of professionally monitored video-verified alarm solutions for the insurance industry. Insurers are looking for technology and data to help them contain costs, and law enforcement and alarm response times are a crucial component. In April 2015, the largest police chiefs association in the country passed a resolution endorsing verified alarms and priority response.

The Texas Police Chiefs definition of a verified alarm requires Central Station monitoring with operators specifically trained to review videos and communicate the pertinent information to law enforcement. Home surveillance systems might work as a nanny-cam but lack the protocols and processes for alarm response provided by the central station. (Here is a link to the Texas Police Chiefs resolution on verified alarms:  http://www.ppvar.org/_asset/wfdzry/TPCA-Priority-Response-Resolution-2015.pdf)

Without technology and new policies, property losses will only get worse as the number of officers declines. At the recent ISC conference, officials from Akron, Ohio, and Chula Vista, CA, said their police departments had already shrunk because of budget cuts, forcing them to reconsider response to alarms — responding to false alarms represents between 8% and 15% of total calls for service at the 911 center. Akron adopted a “verified response policy” in 2014, and over the past year burglaries went down 5%, with increasing arrests.

Retired Capt. Gary Ficacci said Chula Vista was policing 260,000 people with 212 police officers, one of the leanest staff/population ratios in the county. The economic downturn caused the city to lose about 40 officers and provided the impetus to change the alarm ordinance to promote a form of verified response. Chula Vista figures it spends more  than $100,000 in officers and staff for every arrest made in response to a burglar alarm, but video verified alarms could cut that number significantly.

How much better can verified burglar alarms actually be? Radius Security in Vancouver, Canada, just completed a short study of its verified alarms compared with the traditional, unverified alarms. For Radius, its verified alarms were 1,000 times more effective. The arrest rate for unverified alarms is between 0.08% and 0.02%, while arrest rates for verified alarms are often in double-digit percentages.

Why? Because law enforcement treat a verified alarm like a crime in progress instead of something highly likely to be a false alarm.

Texas Chief Vinson says, “The calls that truly merit a higher priority response, those get pushed to the top. Those get the response they need to actually make arrests, and that is what we are all going for here, because if you take that guy off the street that is committing the offenses and you’ve solved that crime you have probably solved a handful of crimes that occurred before that he has already committed that he confesses to. And then you prevent all the crimes that he is not going to commit while he is sitting in jail. So, it is a big deal to make arrests on one of these calls, because it makes a difference in the actual crime rate that affects that city.”

(For video on Radius Data, click here:  https://www.youtube.com/watch?v=AlXMGu-lT7g)

Police Shooting Shows Gaps in Work Comp

Timely response and clear communication are critical for handling workers’ compensation claims. However, when it comes to gathering information, “timing” might be just as important as “timely.” A story out of Ft. Worth, TX highlights that the process needs to be a well-choreographed dance, or significant problems can arise.

Fort Worth Mayor Betsy Price publicly admonished CorVel Enterprise Comp for asking “inflammatory questions” of a police officer the morning after he was shot and seriously wounded in the line of duty.

The officer, a 19-year veteran of the Fort Worth Police Department, was shot in the abdomen while he and another officer responded to a mother’s 911 call asking for help with her son. The son, who was barricaded in a bedroom, opened the door and shot the officer. Both officers returned fire, killing him. The officer underwent surgery at Texas Health Harris Methodist Hospital.

Mayor Price, in a letter to CorVel, said the company’s workers’ compensation representative showed up at the hospital the morning after the shooting and proceeded to ask questions of the family, officers and hospital staff. The letter calls the questions “inflammatory” and criticizes the timing “as one of our police officers rests in a hospital bed recovering from gunshot wounds received last night.” The mayor is requesting CorVel CEO Gordon Clemons and his staff meet with her to “determine the facts and get to the bottom of this matter.” The company did not respond for the initial newspaper article and, as of this writing, still does not appear to have responded publicly.

I must state unequivocally that we do not know what questions were asked, or in what tone they were delivered. Clearly, however, people were upset by what they perceived to be an entirely inappropriate line of questioning, and people’s perceptions will be their reality. The questions might have been of a simple, by-the-book initial claims investigation nature. Given the emotionally charged atmosphere, however, I would suggest the timing was likely poor. Perhaps the best question that could be asked in that highly volatile 24-hour period should have been, “How can we help?” [Editor’s Note: It now appears that this question was, in fact, the point of the visit, but communication was poor. Here is a link to a followup column by the author. ]

This highlights such a critical issue for our industry. If there are two things workers’ comp is routinely criticized for, it is lack of timeliness and of communication. After all, we are the industry that invented the concept of “hurry up and wait.”

Under normal circumstances, having a workers’ comp representative present and involved within 24 hours would be a great thing – assuming, of course, that the representative did not make it a confrontational affair. Yet, somehow, an employee in this case has produced the opposite effect, angering an injured worker’s family, his associates and employer – the client responsible for paying the bills.

Perceptions can have lasting and damaging effects. Unfortunately for the workers’ compensation industry, perception is not something we spend a great deal of time worrying about.

We are a statutorily driven industry, going through the regulated processes day after day after day. It is sometimes easy to forget that there is a human being attached on the other side of that claim, and that our actions are continually creating perceptions about us and our trade. That lack of awareness on our part can lead to costly errors, and that may be exactly what has occurred in this case.

We do not have the full details; this is a one-sided story to date. What we do know is that something riled the mayor enough to write that letter and take the entire matter public.

In one way, her actions accent a positive point of the story, as they show an employer actively engaged in the welfare of an employee, as well as the management of his recovery. It is something we need to see far more of across the nation.

As for the CorVel employee involved, we do not know if the person was a competent employee just trying to perform the processes required of the job — or is living proof that a company is only as good as the biggest idiot on its payroll. It really doesn’t matter, as the perceptions of the one side are the only ones that are of concern at a public level.

Those perceptions tell us that proper timing may be more important than proper timeliness, and that showing compassion is essential. Sometimes, we can show compassion just through proper timing.

5-Year Analysis Of Pharmacy Burglary And Robbery Experience

Background
Burglaries and robberies represent a significant expense to pharmacies in the United States. Beyond direct insurance costs, which are driven by loss experience, pharmacists experience financial, business interruption and psychological costs. Pharmacists are concerned about armed robberies, and even finding that a store has been burglarized overnight can be upsetting and cause the expenditure of thousands of dollars in an effort to prevent reoccurrence. Beyond what is covered by insurance, customers pay deductibles that can easily be exceeded as a result of criminal efforts to gain entrance. Pharmacists that are victimized face hours of dealing with police, the Drug Enforcement Administration, board of pharmacy, contractors and their insurance company. As state and national efforts increase to address the underlying problem of prescription drug diversion, pharmacists face increasing administrative and regulatory compliance costs.

When we seek methods to effectively combat the problem, it is important to understand the larger problem of prescription drug diversion and how it fuels pharmacy burglaries and robberies. Described by the Centers for Disease Control as having reached epidemic proportions in the United States, demand for prescription narcotics, coupled with a widely available supply, create an environment that is ripe for criminal activity.

  • While the U.S. represents only 4.6% of the world's population, we consume 80% of the global opioid supply.
  • Five million Americans use opioid painkillers for non-medical use.
  • We experience almost 17,000 deaths from prescription narcotic overdoses annually. In a 4 year period, that is more deaths than we experienced during the Vietnam War.
  • Morphine production was at 96 milligrams per person in 1997. By 2009, that number increased eight-fold.

The origins of the problem are complex, but are based on a cycle of over-prescribing that has occurred over the past two decades. While well intentioned, liberal prescribing coupled with aggressive marketing, incentives and even encouragement to physicians to relieve pain at all costs sparked the fire. Unchecked by adequate physician education on drug diversion and dependency, and a lack of appropriate chronic pain management protocols, demand and dependency increased. As demand increased, so did production levels, opportunities for profit and creative methods of diversion.

Pharmacy crime involves every part of the distribution chain from manufacture through wholesale, retail, and ultimately to the end user. Pharmacists have been victims of deceptive practices, prescription fraud, employee diversion, burglaries and robberies. According to the Centers for Disease Control, prescription drug diversion, measured by drug overdose deaths and pharmacy crime, is at epidemic proportions.

National And State Actions Taken To Address The Problem
Significant efforts continue to be taken at the national and state levels to combat the problem, with various degrees of success. Each of these has a direct impact on how customers conduct business. Unfortunately, most will have no short term impact on reducing the probability of pharmacy burglaries, robberies or employee diversion.

Prescription Drug Monitoring Programs — Inputting data on prescriptions written and prescriptions filled, particularly for opioid based narcotics is an effective measure for identifying doctor shoppers, abusers and other drug seekers. While the programs are in place in 49 states, most do not connect with each other. This allows a drug seeker to get a prescription in one state and have it filled in another. Use of the program varies significantly by state between being mandatory, voluntary or somewhere in between. In addition, many of the programs are set up on a “free trial” basis for 5 years. As the trial periods are expiring, funding is becoming difficult to continue the programs, notably in California and Florida. Most pharmacists support these programs; however, there has been some resistance by major chains and various state medical associations — in large part objections are based on the time it takes to enter data.

Drug Courts — Intended to allow persons committing crimes to recover, many of these courts eliminate or significantly reduce sentencing for burglars and, in some cases, robbers. This results in a significant level of resentment by pharmacists who are victims of crime.

Drug Enforcement Administration Strike Forces — In the past several years, the Drug Enforcement Administration has shifted a major portion of resources from illicit drug enforcement activity to prescription narcotics. One of the focal areas has been on monitoring the flow of narcotics to pharmacies. These efforts have resulted in sanctions and subpoenas against distributors such as Cardinal Health and Amerisource Bergen, as well as arrests of physicians and pharmacists. In some areas of the country, there are complaints of narcotic shortages as distributors restrict shipments. This pushes drug seekers to other states and areas where enforcement is not as aggressive.

Changing Prescription Patterns — Where states have increased penalties against prescribing physicians and pharmacists for filling prescriptions when they “should have known better,” some physicians have decreased or stopped writing scripts for certain narcotics and some pharmacists have pulled them from the shelves. As chronic pain treatment guidelines are implemented and physician education on drug diversion and addiction increases, we can expect tighter controls on the management of prescription narcotics.

Treatment For Abuse And Addiction — A reality in the war against prescription narcotic diversion is that the demand exists and that the long term solution requires treatment programs that take time, cost money and are much more difficult to manage than writing and filling prescriptions. Until these programs become more available and acceptable, drug seekers will continue to find ways to obtain narcotics, including committing crimes against pharmacies.

Key Findings Presented In This Report
This report covers a 5-year analysis of burglaries and robberies occurring to Pharmacists Mutual customers.

These claims impact our bottom line. Data collected comes from claims department data as well as interviews with each customer victim by our claims department over the past two years. In many cases (where requested by the customer or due to the nature of the loss), follow-up investigation is also conducted by risk management. Information obtained has been used to educate customers, underwriters and field representatives about how the crimes are committed and preventive measures that can be employed to minimize the extent of loss.

What we've learned:

  • Frequency of pharmacy crimes (81% of PMC crimes are break-ins vs. armed robberies) has been relatively flat over the past 5 years compared to policy count. While we've seen an 18% increase in crimes over the past 5 years, policy count has grown by 21%. RxPatrol, the only other national pharmacy crime database, has seen a slight decrease over the past 2 years, however, 60% of RxPatrol reports are for armed robberies, primarily to national chains, and much of this decrease may have been as a result in aggressive measures to address the robbery problem in chain stores such as Walgreens and CVS.
  • Total incurred and average costs have increased steadily over the past 5 years.
  • Almost 70% of the crimes we see are under $5,000. 50% of costs come from the 9% of claims that are in excess of $25,000.
  • In 52% of cases, criminals enter through the front door or front window. One indication is that video surveillance, while at times helpful in identifying perpetrators, does not deter crime. Some of the most expensive burglaries have been those where criminals entered through the roof. Examination of these and side wall entries indicates the approach targets areas of the pharmacy that may not be adequately protected by alarm systems, or to circumvent motion detectors.
  • In 1/3 of cases, police respond within 5 minutes. When they do, arrests result in 21% of cases. Unfortunately, most crimes take less than 2 minutes. Bottom line, if they can get in, chances are they will be successful and will get away. In areas of the country where police response times exceed 30 minutes (rural and municipalities with budget constraints), pharmacies are effectively unprotected.
  • Most state boards of pharmacy require alarms, but situations remain where alarms are not present, are not functional or are ineffective. In many cases, maintenance and testing are non-existent, and there are suspicions that alarm codes may have been compromised.
  • If a criminal wants to try and burglarize or rob a pharmacy, the pharmacy will likely incur property damage. However, the size of the loss can vary from a few hundred dollars to tens or even hundreds of thousands of dollars depending on control measures that are in place.

    What really makes a difference in keeping loss costs low?

    • A well-designed, tested and reliable alarm system. Alarm codes need to be protected and police response needs to be adequate.
    • Protecting doors and windows to slow down or eliminate the possibility of entry. If the crooks cannot gain entrance within a few minutes, they will usually leave.
    • Installing a safe. The overwhelming majority of criminals are in and out in less than 2 minutes. Locking target drugs in a sound, well-secured safe can make a significant difference in the size of the loss.
    • Having a plan and training employees on what to do if a robbery occurs. This can mean the difference between life and death.

What We've Done At Pharmacists Mutual And What We Will Be Doing In 2013

  • Over the past two years, we have met with over 15 pharmacy associations and buying groups, have published numerous white papers and articles in our semi-annual publication “Pharmacists Mutual Risk Management” and have spoken with hundreds of customers who have experienced pharmacy crime first hand.
  • We have identified vendors of security products based on our loss experience. Where possible, we have arranged discounts for PMC customers who use these services.
  • In the fourth quarter of 2012, we provided training to underwriters about pharmacy trends and tools to assist them in evaluating protection levels at pharmacies and to address specific deficiencies.
  • For 2013, we will be implementing a pharmacy security evaluation matrix. The matrix, based on probability and loss severity data, will be used to assist pharmacies in assessing risk and in underwriting evaluation.
  • We plan to continue publication and education efforts.

Pharmacy Crime Frequency

Number of Pharmacy Commercial Policies

National Data

Pharmacy Crime Total Incurred Claims Cost

Pharmacy Crime Average Incurred Claim Cost

Frequency by Size of Incurred Loss

Robbery vs. Burglary

Method of Entry

Average Cost by Method of Entry

Video Surveillance

Arrest Rates and Video Surveillance

Police Response Times

Arrest Rate by Time of Response

Alarm Notification

Alarm Response Average Cost

Alarms and Sales

Copper Theft Solution Reduces Claims For Construction Sites

Copper theft presents a significant challenge for loss control.

Unlike other property crimes where “recovery” goes a long way toward mitigating the loss, such as the recovery of a stolen car in an auto theft, the recovery of the stolen copper seldom impacts the size of the claim.

Copper theft is different because the damage done to a building stealing a few hundred dollars' worth of copper can cost insurers tens of thousands of dollars to repair. The typical copper theft claim involves the damage done ripping wires and plumbing out of walls or the coils from a rooftop HVAC system. In vacant buildings, thieves target water lines and sprinkler systems as well as the electrical wiring. Once a vacant property has been hit, thousands of dollars must be spent to bring it back up to code before it can be occupied. It is this “collateral damage” that makes copper theft claims so expensive to an insurance company.

The key to reducing copper theft claims is prompt police response. The faster law enforcement arrives, the less time thieves have to damage the property. Faster police response is what wireless video alarms deliver and why they are a valuable tool for loss control against copper theft.

Copper theft has impacted insurance companies across North America, becoming a mainstream problem covered by television news. The following reports from television news underscore much of what this article is attempting to communicate — a new paradigm to mitigate risk and reduce claims impacting the real world from Virginia to Arizona.

Construction crime is a close cousin to copper theft and has been a black hole for risk management with few affordable solutions. The nature of construction risk is temporary and this means that wired surveillance cameras and alarm systems are simply too expensive and cumbersome to install to make them cost-effective.

The technology challenges are significant: in addition to limited budgets there is often no power, no phone lines, and no easy access to internet. Policy holders do not want to spend large amounts of money for temporary infrastructure that has no value after the job is done. For construction, human guarding is the most obvious approach, but it is beyond the budgets of many job sites. With guarding cost prohibitive, from a loss control perspective there have been very few affordable options for mainstream policy holders to protect their projects. Construction remains a problem child for many insurers who are forced to raise deductibles and implement exclusions to make construction profitable.

The following newscast from Buffalo, New York describes the challenges of securing a construction site and successes found with wireless video alarm systems.

While human guards have become too expensive and unreliable for many sites, technology is improving and loss control has a new tool to secure construction sites. Portable wireless video alarms give loss control professionals an affordable tool to deliver police response to a job site before the damage occurs. These new wireless camera/detectors (called MotionViewers) sense an intruder and send a short video clip of the incident over the cell network to a central monitoring station for immediate review and police dispatch and priority police response.

The immediate review/response with a monitored video alarm has proven more effective than human guards as the sensor/cameras are installed in multiple points across the job site to detect and report any activity. The crucial factor in reducing claims for copper theft is immediate police response, and video verified alarms make all the difference — the monitoring central station operator is a virtual eyewitness to the crime.

Police treat a video verified alarm as a crime-in-progress — they respond faster and they make arrests. Case studies on video verified alarms have arrest rates of over 50%. One construction site in Arizona had 40 arrests over four months on a single site. Arrests make a difference because one arrest prevents an additional 30 crimes — copper theft is typically done by habitual thieves who target construction sites or vacant property.

To be affordable and effective, the camera/sensors must be easy to install, without the cost of trenching cables and running wires. Power is a challenge as many construction sites have only temporary power provided by generators during working hours. Many vacant building have no power at all.

The wireless Videofied alarm systems need no infrastructure to secure a site. They operate for months or even years on batteries, communicating over the cell network to the central station. These portable MotionViewers are more effective than fixed cameras because they can be moved to protect the assets on a job site as the project evolves. Portability is important because construction theft is often an inside job by a subcontractor familiar with the delivery and location of expensive materials or assets — and they know the locations of fixed cameras and how to avoid them. In contrast, magnetic mounts on the wireless MotionViewers enable the job supervisor to move the cameras, placing them on steel studs and tool cribs at the end of the day to protect what is most at risk.

Wireless video verified alarms for outdoor applications mean that loss control professionals have an effective tool to fight copper theft that is affordable enough for implementation by their policy holders. For more information visit www.videofied.com.