VACCINE MANDATES: Employers consider compulsory COVID-19 shots - PAGE 4

JUNE 2021 SPECIAL REPORTS PANDEMIC RISK MANAGEMENT PAGE 27 WORKERS COMP PAGE 31 PROPERTY INSURANCE PAGE 35

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Ad Template.indd 3 5/21/21 7:48 AM PRESIDENT Steve Acunto (Greenwich) [email protected]

PUBLISHER Keith Kenner (Chicago) [email protected] COVER STORY EDITOR Business Insurance profiles Gavin Souter (Chicago) the winners of its 2021 [email protected] Break Out Awards, which DEPUTY EDITOR honor potential future leaders Claire Wilkinson in the U.S. insurance industry. (New York) [email protected] The 40 honorees from across the country represent some of ASSISTANT EDITOR Louise Esola the most promising individuals (New Orleans) working in insurance and risk [email protected] management. PAGE 14 SENIOR REPORTER Judy Greenwald (San Jose) [email protected]

REPORTER Angela Childers INSIDE (Chicago) [email protected]

REPORTER Matthew Lerner SPECIAL REPORT: PANDEMIC RISK MANAGEMENT (New York) [email protected] In response to high-profile event cancellations due to the pandemic, contingency insurers have cut capacity and raised rates. Meanwhile, the hard-hit restaurant sector COPY CHIEF John Obrecht has adopted new ways of doing business, creating new exposures. PAGE 27 (Chicago) [email protected]

COPY EDITOR Brian Gaynor SPECIAL REPORT: WORKERS COMPENSATION (Portland) [email protected] Employers and insurers increasingly are realizing that physical injuries often include a mental component that can lead to prolonged claims and higher costs; early ART DIRECTOR Jeremy Werling intervention and treatment are key. PAGE 31 (Cincinnati) [email protected] DIRECTOR OF RESEARCH, NEWS ANALYSIS WORKERS COMP PLANNING AND INSIGHTS More employers are considering mandating COVID-19 Andy Toh (Chicago) FOR BREAKING NEWS vaccinations for returning workers. PAGE 4 [email protected] COVERAGE, VISIT MAJOR ACCOUNTS DIRECTOR - businessinsurance.com RISK MANAGEMENT NORTHEASTERN U.S. & INTERNATIONAL Ron Kolgraf Non-fungible tokens pose unique risk management (Boston) questions for art dealers. PAGE 6 [email protected] SENIOR VICE PRESIDENT, INTERNATIONAL BUSINESS DEVELOPMENT PERSPECTIVES Stephen Acunto Uruguay’s state insurance company dominates the nonlife Artificial intelligence has (Princeton) market, requiring innovation from competitors that want [email protected] made identifying and to boost their market share. PAGE 11 HEAD OF SALES, EVENTS preventing ergonomic risks & REPRINT SALES MANAGER much easier, write Timothy Susan Stilwill (Nashville) Lohrmann and Marcus [email protected] Fichtel of Chubb Global VICE PRESIDENT OF MARKETING Risk Advisors. PAGE 39 VIEW FROM Brian McGann (Buffalo) OFF BEAT THE TOP [email protected] Some doctors are DIGITAL AD OPERATIONS MANAGER LEGAL BRIEFS having a cow over Jordan Kilty the USDA’s latest MITCH BLASER (Raleigh) Recent court opinions PAGE 12 [email protected] recommended daily Mitch Blaser founded DIGITAL MARKETING MANAGER OPINIONS allowance of dairy private equity-backed Jen Jonasson Vaccine promotion strategies; insights products. PAGE 42 Mosaic Insurance (Chicago) [email protected] from award winners. PAGE 38 Holdings Inc. in Bermuda in February to focus on MARKETING & EVENTS MANAGER Brittany Collins MARKET PULSE specialty risks. His long (Lafayette) Products, deals and more PAGE 40 career has included nearly [email protected] 30 years at Marsh & McLennan Cos. Inc. Mr. Blaser, who MARKETING & EVENTS SPECIALIST Beth Wojdyla PEOPLE also worked at Swiss Re Ltd. and Ironshore Inc., discusses (Chicago) Insurance industry moves PAGE 41 the strategy behind Mosaic. PAGE 13 [email protected]

SUBSCRIPTIONS & SINGLE COPY SALES BUSINESS INSURANCE (ISSN 0007-6864) Vol. 55, No. 7, Copyright © 2021 by Business Insurance Holdings, Inc. is published monthly by Business Insurance Holdings, Inc., 1030 Lake Avenue, [email protected] Greenwich, CT 06831. Accounting, business, circulation and editorial offices: PO Box 1010, Greenwich, CT 06836. Call 954-449-0736 to subscribe. Periodicals postage is paid at Greenwich, CT. 954-449-0736 Printed in the USA. POSTMASTER: Send address changes to Business Insurance at PO Box 1010, Greenwich, CT 06836.

BUSINESS INSURANCE JUNE 2021 3 NEWS ANALYSIS

PROTECTION PROTOCOLS Nine out of 10 employers in the U.S. and United Employers lean toward mandatory shots Kingdom plan to require or strongly BY ANGELA CHILDERS encourage workers [email protected] to be vaccinated for COVID-19, according to a he demand for COVID-19 vaccines has survey conducted declined, and with only about 40% of the in March by Arizona T U.S. population fully inoculated as of late State University’s College of Health last month, employers are taking another look at Solutions and funded whether to mandate workers get vaccinated. by The Rockefeller But such mandates can leave employers on the Foundation. hook for lost workdays and injuries stemming Researchers polled from vaccine reactions and create additional com- nearly 1,400 munications, tracking and recording challenges. employers — 71% As of late May, 49% of 18- to 65-year-old indi- of which were U.S.-based, with viduals in the U.S. were fully vaccinated — far less the remaining 24% than the 70% needed to achieve herd immunity, based in the U.K. according to the U.S. Centers for Disease Control — reporting that: and Prevention. “A lot of employers thought, as soon as (vaccines) vaccination rates. … After much deliberation, and not significant,” she said. “If there is a sig- became available, that people were going to jump MUSC Health has decided to make it an expec- nificant reaction, it’s likely to be work-related. in and get them,” said Michele Tucker, Sacramento, tation that all care team members be vaccinated It’s certainly not worse than a COVID claim at 90% California-based vice president of enterprise oper- against COVID-19.” this point.” will require or ations at third-party administrator CorVel Corp. Many employers had been wary of forcing vac- Employers who opted for a mandatory vaccine encourage COVID-19 “They’re feeling somewhat compelled to move cinations, given the potential for side effects and policy previously needed to worry about record- vaccination. toward mandatory requirement of the vaccine.” that the U.S. Food and Drug Administration ing any serious adverse reactions on their Occu- After first leaving the decision up to employees has approved the vaccines only on an emergency pational Safety and Health Administration logs. and offering an incentive, the Houston Methodist use basis. However, the agency switched gears in late May, hospital system recently said it would require its However, some countries are implementing vac- declaring on its questions and answers section that 59% will incentivize 26,000 employees to be vaccinated for COVID-19 cination mandates for health care workers. On it “does not wish to disincentivize employers’ vac- employees to be or be subject to suspension and/or termination. April 1, Italy approved an emergency decree that cination efforts” and would not enforce recording vaccinated. The Medical University of South Carolina imple- all health professionals must be vaccinated for the requirements related to worker side effects from mented a similar mandate. coronavirus. Those who refused had the option to COVID-19 vaccinations through May 2022. “I have spoken to countless hospital leaders across be transferred to non-patient-facing duties or be The change, “might encourage an employer to the country who plan to mandate COVID-19 suspended without pay for up to a year, according go mandatory because that’s one less downside 60% vaccination soon,” said Dr. Marc Boom, Houston to the British Medical Journal. they would have to worry about,” said Brent Clark, will require proof Methodist’s president and CEO, in an email to all “Health care and front-line employers have been partner in the Chicago office of Seyfarth Shaw of vaccination employees dated April 23 that was forwarded by “a little bit more aggressive” with their vaccine LLP. “But I tend to think it wasn’t recordability from employees. a spokeswoman to Business Insurance. Dr. Boom efforts, finding “much more of a need for man- that is causing hesitancy (in mandating vaccines). also said he expects nearby Memorial Hermann dating or strongly encouraging” vaccinations, said It more is a function of the employer’s desire to Health System and Baylor College of Medicine to Adam Kemper, Fort Lauderdale, Florida-based give the employees choice.” issue their own coronavirus vaccination mandates. partner with law firm Kelley Kronenberg P.A. Regardless of whether an employer mandates 84% A former registered nurse at Houston Methodist Ms. Tucker, who works with a number of hos- or merely encourages vaccinations, it’s crucial would allow recently went public with her decision to leave her pital systems and medical centers in the U.S., has to communicate with employees, said Kathryn COVID-19 vaccinations to be job rather than get the vaccine. seen several more clients move toward mandatory Bakich, Washington-based senior vice president administered to their “For us to optimize patient safety, we must have vaccines recently after fewer employees than antic- and national director of health care compliance at employees at their higher vaccination rates across MUSC Health,” a ipated opted to be vaccinated. employee benefits consultancy Segal Co. facility if supplies spokeswoman for MUSC said in an email. “Large She has also seen a few vaccine-related workers “Having a very clear and understandable set of were available. numbers of patients are not coming to health care comp claims in the past month as a result of the policies and explaining those up front is really Source: The Rockefeller facilities because of our care team members’ lower mandates, but they’re “very small, not expensive important,” she said. Foundation

COMPULSORY VACCINE POLICIES RAISE WORKER CONFIDENTIALITY CONCERNS mployers that mandate COVID-19 president and national director of health as a disability or sincerely held religious inoculation, but also boosters, said Michele vaccinations for their workforce care compliance at employee benefits belief, that could violate federal law, Tucker, Sacramento, California-based E need to be prepared to verify consultancy Segal Co. “We’re getting a according to the Equal Employment vice president of enterprise operations at inoculation, keep track of boosters and lot of questions about what has to be Opportunity Commission. third-party administrator CorVel Corp. ensure they’re complying with relevant kept confidential, who can see it, who While employers tend to push these “Shot records are going to be privacy laws, experts say. cannot see it … You don’t want it in a types of tasks to human resources, Ms. important,” she said. “If (employers) “(Companies) have to decide how personnel file.” Bakich said it’s much better to create make it mandatory, they’re going to to protect the confidentiality of the Simply recording a “yes” or “no” for a secure intake to track vaccinations — have to monitor the boosters. It’s information” they’re collecting, consider vaccination status is not protected, such as a secure online portal — or have probably going to have to be an ongoing what kind of proof of vaccination according to the U.S. Centers for Disease everyone email one single person who is vaccination program with new strains they will require and how they will Control and Prevention. But if employers trained in confidentiality procedures. coming out — like getting the flu shot maintain confidentiality, said Kathryn ask follow-up questions or include They also need to be sure they’re tracking every year, but a little different.” Bakich, Washington-based senior vice reasons for vaccine declinations, such not only the initial one- or two-dose Angela Childers

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REGULATORS EYE TOKENS Digital artwork creates new risks AS ASSETS Christie’s/Beeple BY MATTHEW LERNER he regulatory status of [email protected] non-fungible tokens, T which is being considered he sale of digital artwork represented by the U.S. Securities and by non-fungible tokens — essentially a Exchange Commission, T point on a digital ledger or blockchain could have implications that confirms ownership of an original — for insurance coverage is gaining traction in the art world, attract- related to the tokens. ing the attention of regulators and posing In an April 12 letter to unique risk management questions for auc- the SEC, Arkonis Capital tion houses, dealers and others involved in LLC, a broker-dealer that the transactions. says it is “very familiar with In March, Christie’s auction house sold the blockchain technology and digital artwork “Everydays: The First 5000 digital assets,” said the SEC Days,” by Mike Winkelmann, who goes by “needs to provide regulatory the name Beeple, for an eye-popping $69 clarity with respect to the million. The sale heightened the profile of regulation of a new form of the emerging art format. digital assets —non-fungible Other NFT art includes videos and tokens.” Arkonis said, “We recordings. The assets are often bought and believe in certain instances sold using the cryptocurrency ether on the NFTs may be securities.” Ethereum blockchain. Should NFTs be viewed as Uncertainties concerning the commercial financial instruments, “that exposures created by such digital art sales are will have big implications” rapidly becoming the subject of discussions for their regulation, said Paul in the insurance industry. King, senior vice president, “I’ve been having discussions with one of executive and professional our clients on NFTs and what that entails,” risk solutions national said David Ktshozyan, a Los Angeles-based advisor, for USI Insurance senior associate with law firm Clyde & Co. Services Inc. in Dallas. “One of the things that really spurred Uncertainty about the interest in it was the $69 million sale in The digital work “Everydays: The First 5000 Days,” by Beeple, sold for $69 million at Christie’s. classification of NFTs “opens March at Christie’s,” said Mr. Ktshozyan, questions about regulation who represents insurers. “a handful” of inquiries from customers seek- president and CEO, Huntington T. Block and what potential risk Traditional art and auction houses face ing to insure digital assets, including NFTs Insurance Agency Inc., a Washington-based transfer some may need to very different risks than are present with and bitcoin collections. fine art unit of Aon PLC. It could be “a bit contemplate,” said Jackie digital art, he said. Ms. Schipf said the specie segment of of a stretch to come up with a hypothetical Quintal, who heads up “Typically, in a traditional art setting, one is Axa XL’s business includes cryptocurren- claim scenario to which a tradition- Marsh LLC’s U.S. worried about physical damage to a physical cies and a bit of cold storage involving bit- al fine art insurance policy would digital asset group piece of art,” in transit, at auction, possibly coin, “things that are not art-related but are favorably respond,” he said. in New York. from mishandling, Mr. Ktshozyan said. more like valuable commodities.” Coverage For example, if a collector lost Ms. Quintal With NFTs “you don’t have those same for NFTs may ultimately involve some sort the encryption key or the pass- cited the anti- concerns and you don’t have those same of hybrid product with cyber, fine art and word to a hard drive containing money laundering risks because everything is on the internet,” potentially other components, she said. the NFT artwork, the digital file concerns he said. Fine art insurance policies are designed to would still exist and the loss would of regulators Jennifer Schipf, global chief underwriting cover physical loss or damage only. If a work therefore be financial and not physical, as also potentially officer of fine art and specie in New York for of art, such as an NFT, has no physical form, Mr. Dunn said. relevant to NFT sales, Axa XL, a unit of Axa SA, said she has had it cannot suffer such damage, said Joe Dunn, There may, however, be significant risk depending on the ultimate management concerns for those involved in classification and regulation RECENT NFT SALES: SKYROCKETING PRICES the sale of NFTs. of NFTs. “The first place you’re going to look, but Such regulation and Asset Date of sale Adjusted price (USD) not the only place, is your errors and omis- scrutiny could also sions insurance — is there anything from a potentially create a directors Everydays: The First 5000 Days March 11, 2021 $69.3M coverage exclusion standpoint that would and officers liability preclude coverage?” said Paul King, senior exposure, Mr. King said, potentially touching on lines Cryptopunk #7804 March 10, 2021 $7.6M vice president, executive and profession- al risk solutions national advisor, for USI such as Foreign Corrupt Insurance Services Inc., based in Dallas. Practices Act coverage Beeple’s CROSSROAD Feb. 25, 2021 $6.6M “I think there’s certainly an E&O com- The discussion of NFT ponent to it,” but policyholders should regulation, even extending 1st tweet of Twitter CEO Jack Dorsey March 22, 2021 $2.9M confirm if their existing policy language is to money laundering, is broad enough or doesn’t directly or indirectly “pretty wide ranging, but that intersection is a real Cryptopunk #6965 Feb. 19, 2021 $1.6M exclude advising on the sale of digital assets, said Jackie Quintal, who heads up Marsh thing,” Mr. King said. Source: News reports LLC’s U.S. digital asset group in New York. Matthew Lerner

6 JUNE 2021 BUSINESS INSURANCE Pandemic fuels rise in attacks on health staff

BY ANGELA CHILDERS And while basics like surveillance cam- [email protected] eras, security guards and panic buttons are prevalent, only some health care employ- iolence against health care workers ers provide training in de-escalation tac- has been on the rise in recent years, tics and violence intervention and have a V and the COVID-19 pandemic has code system for violent incidents similar made the risks even worse for doctors, to those used for clinical emergencies, Mr. nurses and support staff. Duncan said. Lawmakers at the federal level and in Hospitals should conduct training at more than a dozen states have introduced a minimum every year, including active legislation to mandate that health care shooter drills, and senior leadership employers implement violence preven- should do tabletop exercises and review tion programs, and experts say resources their violence prevention plans annually, and training are crucial to help mitigate Ms. Elias said. the problem. If an incident does occur, the employer Violence against health care providers is should use it as an opportunity to reeval- the third-leading cause of serious work- uate its violence prevention program, she place injuries in the health care industry, said. “If you had a workplace violence situ- generating at least $540 million a year in ation, you want to, after the incident, make workers compensation costs, according to sure you bring all those key players together Liberty Mutual Holding Co. Inc.’s 2020 vention standards. “The best way to reduce in different iterations for a long time,” the and talk about what went well, what could Workplace Safety Index. the probability and severity (of violence) Occupational Health and Safety Admin- we improve in the response,” she said. “COVID-19 certainly has both exac- against health care workers is thoughtful istration does not have a specific standard Ms. Popp said simple, “almost main- erbated existing sources of violence and planning and mitigation techniques, facil- related to violent incidents in health care tenance-type” fixes should not be over- opened up new areas of confrontation ity design and robust reporting,” he said. facilities, said Lisa Stand, senior policy looked, such as ensuring all exterior doors between health care providers, patient advisor for policy and government affairs are secured at all times, lights that burn families and the general public,” said Jeff “COVID-19 certainly has both at the Silver Spring, Maryland-based out are replaced immediately, security Duncan, Boston-based senior vice presi- American Nurses Association. cameras are working, and safeguards are dent and chief underwriting officer of the exacerbated existing sources of “OSHA has demonstrated that even put in place if staff feels unsafe in certain health care practice at Liberty Mutual. though there is no standard, they will use areas of the premises. Violent incidents against health care violence and opened up new areas of the general duty clause” to cite health care If neglected, “those are the things that workers have been rising and extending employers that fail to take steps to pro- allow violence to escalate sometimes beyond the emergency room and hospital confrontation between health care tect workers, said James Sullivan, Wash- without being identified” and should be to non-acute settings, such as physician ington-based co-chair of the OSHA addressed before adding more preventive offices, said Pamela Popp, Denver-based providers, patient families and the and workplace safety practice at Cozen measures, such as metal detectors, physi- executive vice president and chief risk offi- general public.” O’Connor P.C. and former chairman cal barriers and other security upgrades, cer of GB Healthcare, a division of Galla- of the Occupational Safety and Health she said. gher Bassett Services Inc. Jeff Duncan, Liberty Mutual Review Commission. “There is a real issue PROPOSED LEGISLATION “We’re seeing an increase (in violence) with assaults on nurses. … It’s a recog- Thirteen states have introduced legislation this across all of the health care settings, and nized problem, and that’s why you see the year that would require some type of prevention although it’s a little challenging to make a laundry list of unions and other employee plan, committee or program to protect health correlation right now, it does appear that In February, federal lawmakers introduced organizations pushing for (H.B. 1195).” care workers from workplace violence: the pandemic has made it worse,” she said. H.B. 1195, which would require health care Most large hospital systems have a ME People are fearful and “have a feeling of a employers across the country to create a violence prevention program, but it’s AK VT NH lack of control” due to the coronavirus, and comprehensive program and processes to not always effectively communicated to WA MT ND MN WI MI NY MA RI as a result are more likely to enter health prevent violence against health care work- supervisors, and training can be over- ID WY SD IA IL IN OH PA NJ CT care facilities in an agitated state, Ms. Popp ers. Thirteen states have also introduced looked, said Renata Elias, Dallas-based OR NV CO NE MO KY WV MD DE said. This can cause what should be a calm legislation that would create minimum senior vice president in the consulting CA AZ UT KS AR TN VA NC DC conversation to escalate quickly to shoving standards for health care workplace vio- solutions practice of Marsh Advisory, a NM OK LA MS AL SC or other types of violence, she said. lence prevention plans and training. unit of Marsh LLC. “It’s great to have a HI TX GA Mr. Duncan said the industry lacks While guidelines for preventing violence plan or program in place, but it’s no good FL “broad, consistently followed” violence pre- in health care settings have “been around if you don’t train and exercise,” she said.

TRAINING, ANONYMOUS REPORTING SYSTEMS CAN HELP CURB WORKPLACE VIOLENCE

ealth care facilities can have robust Advisory, a unit of Marsh LLC. Njoki Wamiti, senior vice president of show how the report and the solution violence prevention plans, but if “The big concern from people is they Ironshore Insurance, a Liberty Mutual helped improve security for all, she said. H employees fear being reprimanded for want to be anonymous … and feel like they company. “They may think this is normal, “People are fearful of reporting because calling security or are afraid they might be can make a phone call (to a hotline) when so there is no need to report it.” they don’t know what happens to the overreacting, the measures are less likely they see something,” she said. “Having Employers need to train workers on information once it’s shared,” Ms. Popp to be effective, experts say. that open dialogue to let employees situational awareness — being aware that said. “As soon as you can, show them that Procedures must be in place for know there is a safe place to speak out is if a situation makes them uncomfortable action is taken and that it’s a positive recording incidents and near-misses, and important.” it’s time to ask for help, said Pamela Popp, thing that they are reporting. Near-misses staff need to feel comfortable making a Health care staff can “almost get Denver-based executive vice president are the same type of thing. We have to get report and know how to do so, said Renata immune” to violent incidents, particularly and chief risk officer of GB Healthcare, a them to trust that we’re going to use the Elias, Dallas-based senior vice president in verbal abuse, because of how common division of Gallagher Bassett Services Inc. information to make things better.” the consulting solutions practice of Marsh they are in the health care setting, said It’s equally important to follow up and Angela Childers

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CYBER New capacity enters D&0 sector RANSOMS TEST MARKET ecuritization could be in as prices, exposures increase cyber insurance’s future, S but for now policyholders and insurers are grappling BY JUDY GREENWALD with the challenges posed by [email protected] ransomware. Those were among the he management liability marketplace issues discussed during faces numerous challenges, including an sessions of the Minneapolis- T increase in fiduciary liability lawsuits, as based Professional Liability it braces for expected SPAC-related losses. Underwriting Society’s 2021 These were among the themes during this cyber symposium, which year’s Professional Liability Underwriting was held virtually May 5-6. Society’s annual directors and officers sym- Joe Mann, CEO of posium, which was held remotely April 28 Washington consulting and 29. firm Arete Advisors LLC, Even before the pandemic, the industry said there are about 30 faced several challenges, including anticipat- ransomware variants ed hikes in premiums and retentions, as well circulating, with more as more class action derivative lawsuits, said criminals threatening to Christine Williams, New York-based CEO, release exfiltrated data. “It financial services group, at Aon PLC. just ratchets up the chaos “We’re continuing to see portfolio adjust- and the crisis scenario ments overall out of the gate,” and rates that happens,” he said. continue to experience upward pressure, or SPACs, presents opportunities for the objection claims, Ms. Barrett said. “There’s a Criminals are more she said. D&O liability insurance market, insur- lot there and we’re just kind of waiting and sophisticated and persistent, However, there have been about a dozen ers are approaching the issue cautiously, watching.” and activists, nation new entrants into the management liability speakers said. Stephen Sills, CEO of New York-based states and disgruntled market in the United States and London, SPACs, also called “blank check compa- Bowhead Specialty Underwriters, said the insiders continue to cause Ms. Williams said. “It’s early days, but I nies,” are shell companies formed for the accelerated process in which companies cybersecurity concerns, said think they will be able to provide some purpose of raising capital to acquire exist- go public under SPACs “creates a lot of Phil Venables, New York- ample capacity,” she said. ing businesses and usually have two years to problems.” based chief information Chris Warrior, London-based head of make an acquisition after their initial public Typically, bringing a company public security officer for Google commercial management liability U.K. for offering. involves “a long baptism under fire and a lot Cloud, a Google LLC unit. Berkshire Hathaway Specialty Insurance The structures allow the privately held of training,” Mr. Sills said. Now, “you just Insurance executives Co., said the market is at a crossroads, with businesses acquired to become listed with- add water and instantaneously become a said the cyber insurance London insurers stepping up with an appe- out going through a traditional initial public public company,” he said, adding that he is market may move toward tite to provide new capacity. offering. not sure all of the CEOs and managers of securitization of cyber SPACs unfold in stages, including the these companies are used to the constraints risk, although it will take “There are a lot of SPACs out there pre-announcement stage before it has made they must work under in that particular several years for that an acquisition; the point where it merges environment. market to develop. looking for merger partners with the selected private company; and the There is also potentially a “huge aggrega- Andy Marcell, New York- post-merger or “de-spac” stage, when there is tion problem here” from a D&O liability based CEO of Aon PLC right now, with a lot of money and a combined company. Companies may seek perspective, as SPACs go through their unit Aon Reinsurance D&O coverage at all of these stages. stages, he said. Solutions, said there are lots of IPOs in the pipeline.” “There are a lot of SPACs out there look- Insurers are concerned about aggrega- some coverages that can be isolated to create “discrete, Kevin LaCroix, RT ProExec ing for merger partners right now, with a lot tion, with the possibility they can be hit by of money and lots of IPOs in the pipeline,” the same event multiple times, said Jaimie bespoke coverages.” said Kevin LaCroix, executive vice president Hunter, Brooklyn-based senior vice presi- “If we do our jobs in Beachwood, Ohio, for RT ProExec, a dent at Guy Carpenter & Co. LLC. correctly on the retail The reasons why so many of the new division of R-T Specialty LLC. Change has already occurred in the once side, the demand for the entrants are in London or Bermuda rather SPACs are an opportunity, but “at the same “sleepy” fiduciary liability market because of coverage will increase” than the United States was also discussed. time you know that you’re going to see losses the growing number of excessive fee claims and create the additional In the U.K., entities have the ability to get just because of the sheer volume of activi- lawsuits being filed, executives said. capacity needed, he said. up to speed fast, and freedom of rate and ty,” said Allison H. Barrett, New York-based The fiduciary space recently has taken “an Mr. Marcell said insurance form, while in the U.S., new markets are head of North America financial lines for abrupt and sudden turn” because of these and reinsurance brokers forced to go through individual states, “and American International Group Inc. claims, which are class actions brought have to be able to provide there is a lot of work that has to be done to “There’s some risk inherent in these trans- against defined contribution plans in con- some underlying data with get the entity’s paper ready to go,” said Jack actions,” she said. Clearly, the SEC is “look- nection with allegations that recordkeep- regard to outcomes against Kuhn, CEO, insurance, at Vantage Risk Ltd. ing to slow down the process but not stop ing and other expenses that they charge are a set of deterministic in Berkeley Heights, New Jersey, whose par- it,” she said. unnecessary or unreasonable, said Alison scenarios. “I think we will ent company is Bermuda-based. There are questions as to what happens Martin, Pittsburgh-based fiduciary prod- get there as an industry, Meanwhile, although the explosive growth when SPACs de-spac. “That’s candidly uct manager and senior vice president at hopefully,” he said. in special purpose acquisition companies, where we see a lot of risk,” including merger Chubb Ltd. Judy Greenwald

BUSINESS INSURANCE JUNE 2021 9 NEWS ANALYSIS Cannabis insurance options shifting

BY MATTHEW LERNER coverage, including D&O and errors and [email protected] omissions insurance, have been particularly difficult and could benefit from expansion, he insurance climate for cannabis oper- he said. ators and related companies remains The best way to describe cannabis D&O T cloudy, but it is improving and should is “a hard market within a hard market continue to do so. — very firm and difficult to operate in. Developments ranging from the prospect It’s very difficult to buy limits up to and of looser federal restrictions to improving above $10 million,” said Ben Sibthorpe, policy language could benefit the industry. Denver-based vice president in the man- Capacity for cannabis operators and agement liability division of CannGen related businesses remains constrained, Insurance Services. Fewer than 10 insur- however, with some markets such as direc- ers currently write such coverage, he said. tors and officers liability insurance partic- Sebastian Alia, New York-based depu- ularly difficult. ty general counsel at Hudson Insurance Two bills before the U.S Congress could Group, described the cannabis D&O potentially remove some of the more sub- market as “a hard market on steroids.” stantial barriers facing cannabis operators Cannabis “adds so many additional when buying insurance (see related story). uncertainties” as a new industry with little Only four states have no laws relating available data and regulation that offers to legal marijuana use — Idaho, Kansas, “so much gray area,” he said. Nebraska and South Dakota, according to a U.S. senator and vice president, and Mr. “the No. 1 ask” from cannabis operators Matt Grimes, vice president of the can- the National Conference of State Legisla- Stewart spoke recently during a series of is still capacity, as many are not able to nabis specialty group at Hub Internation- tures. In all other states it is either legal- webinars on the cannabis sector produced secure limits they desire, especially for al Ltd. in Chicago, said the brokerage ized, decriminalized, allowed for med- by Business Insurance. total insured values. is introducing a new D&O product for ical use, or allowed for medical use and Capacity constraints continue to create The Clarifying Law Around Insurance the cannabis sector. Hub has created an decriminalized. problems for cannabis operators, accord- of Marijuana Act of 2021, which would indemnity vehicle that “uses company-is- Ian Stewart, chair of the national canna- ing to webinar series participants, with the provide a federal safe harbor for insurers sued stock as collateral to provide for an bis and hemp law practice at Wilson Elser D&O sector being acutely tight. covering cannabis businesses where sale of increased limit structure,” he said. Moskowitz Edelman & Dicker LLP in Charles Pyfrom, Livermore, Cali- the drug is legal, could help broaden insur- Meanwhile, policy wording standardiza- Los Angeles, said there is a “domino fornia-based chief marketing officer of ance markets for cannabis operators, Mr. tion is expected to evolve along with the effect” among states legalizing or fur- CannGen Insurance Services LLC, Stewart said. cannabis industry itself, and regulators are ther legalizing cannabis in various forms, which covers cannabis businesses, said The markets for management liability helping play a role in the quest for stan- including New York and Virginia which dardized policy language. recently acted, with New York choosing CONTROL OF LEGISLATURES LEGAL MARIJUANA USE “We’ve found the departments of insur- full recreational adult use. n Democratic n Republican n Recreational and medical use n Medical use ance have been incredibly flexible in our “At the state level, things are not slowing n Split n Unicameral/nonpartisan n CBD/Low THC product law n No laws conversations and filings,” said Joseph down,” he said. Jonas, product manager, commercial The drug remains illegal, however, at lines, in Northwood, New Hampshire for the federal level. Cannabis is classified as the American Association of Insurance a Schedule I narcotic by the U.S. Drug Services. Enforcement Administration. Schedule I From a claims perspective, some stan- drugs, substances or chemicals are defined dardization of terms would be welcome, as drugs with no currently accepted medi- said Gerrit Nagarwalla, claims manager cal use and a high potential for abuse. at Canopius Group Ltd. in St. Charles, There have been “some encourag- Illinois. ing signs” for the cannabis sector, said More standardization of policy language Andrew Kline, senior counsel for Perkins as the insurance market for cannabis Coie LLP in Denver. Mr. Kline, who matures would be beneficial, especially to worked for President Biden when he was Source: National Conference of State Legislatures (via AP) claims people, Mr. Nagarwalla said.

FEDERAL CANNABIS LEGISLATION COULD CLEAR AIR FOR HESITANT INSURERS he difficult but improving insurance after passing the House in 2019. Banking Act, said Ian Stewart, chair of the of state and federal agendas. “Once market for cannabis operators in The Clarifying Law Around Insurance national cannabis and hemp law practice members of Congress have a vested T the United States may get a boost of Marijuana Act of 2021, introduced at Wilson Elser Moskowitz Edelman interest, this becomes a bit of a different from two pieces of legislation before in the House in March, would provide & Dicker LLP in Los Angeles, during issue,” she said during the webinar series. Congress, one of which has already a federal safe harbor for insurers a series of webinars on the cannabis The proposed laws are also passed the House of Representatives. covering cannabis businesses in states sector produced by Business Insurance. garnering support from insurance The Secure and Fair Enforcement where sale of the drug is legal. “There is very much a ‘trickle up’ effect,” industry organizations, including the Banking Act of 2021, or SAFE Banking Senators and representatives from said Michelle Rutter Friberg, deputy American Property Casualty Insurance Act, in April passed the House with states that have legalized cannabis could director of government relations at the Association and the Reinsurance more than 100 co-sponsors and be more supportive than previously of National Cannabis Industry Association in Association of America. must clear the Senate, where it died federal legislation such as the SAFE Washington, referring to the dovetailing Matthew Lerner

10 JUNE 2021 BUSINESS INSURANCE INTERNATIONAL

MARKET DEVELOPMENTS Updated May 2021 PROFILE: URUGUAY n The coronavirus was officially confirmed to have reached Uruguay on March 13, 2020, Uruguay’s nonlife insurance market is relatively small, and the full impact of the generating $868.19 million in premiums in 2019. COVID-19 pandemic will not Market penetration per capita remains fairly modest be known for some time. although comparable with neighboring countries, and any potential increase in the immediate future is likely n During late 2020 there were to be moderate. Auto insurance dominates the nonlife 16 insurance companies sector; the second most significant class is workers registered to operate in the compensation insurance, which is obligatory for most nonlife sector, dominated employers. There is unlikely to be any major change to by the state-owned Banco nonlife premium distribution in the foreseeable future. de Seguros del Estado, The market will continue to be dominated by Banco which in 2019 held a 63.14% de Seguros del Estado, the state insurance company, share of total premiums. and competing insurers will require greater innovation n Auto continues to form the GLOBAL to increase their market share. Auto and property 63 largest class of business P/C MARKET will continue to be the main lines of business for AREA for the nonlife portfolio, RANKING private insurers, and competition for new and existing representing over 37% business will continue to intensify. of market premiums in 2019. BSE leads the account, holding over 45% MARKET SHARE PROPERTY of motor premiums. 14.7% 68,037 CONSTRUCTION square miles n Competition for new and & ENGINEERING existing business across 1.1% most lines continues to be strong. Despite this, rates LIABILITY 2.4% have generally remained POPULATION stable or shown only a small MARINE, decline. Market participants AVIATION & AUTO suggest that dramatic rate TRANSIT 37.4% cutting for new business 3.2% does occur, particularly in property classes. MISC. 3.4 4.1% million n There continues to be interest WORKERS in the market from new SURETY, BONDS COMPENSATION entrants and several have & CREDITS 32.8% approached the regulatory 4.2% authority, including a number MARKET CONCENTRATION from neighboring Argentina. MARKET GROWTH n Public-private partnership In millions, U.S. dollars projects may present Life Nonlife opportunities for the 1,000 construction sector and 80.3% ultimately those insurers market share of top three insurers that underwrite the class. 800 n Companies have expressed a need for adequate legislation 600 for the sector, such as framework regulations to 2021 GDP CHANGE govern intermediation. 400 (PROJECTED)

200

0 3.0% 2015 2016 2017 2018 2019 Source: Axco Global Statistics/Industry Associations and Regulatory Bodies

COMPULSORY INSURANCE NONADMITTED INTERMEDIARIES MARKET PRACTICE n Auto third-party n Professional indemnity Nonadmitted insurance is not Intermediaries do not have to be The Superintendency of Financial liability cover (errors and omissions) permitted in Uruguay because authorized to do insurance business Services is aware that some nonlife cover for foreign the law provides that insurance in Uruguay. They are allowed to insurance business is illegally placed n Workers compensation reinsurance brokers must be purchased from local place business with nonadmitted overseas, but the volume is not n Aviation hull (where authorized insurers, with insurers in the classes for which believed to be significant. There n Liability insurance for the maximum take-off some exceptions. Among the such placements are permitted. have been no recent reports of companies operating weight exceeds six exceptions is insurance on the Brokers involved in nonadmitted any unauthorized insurers illegally within ports tons), third party, crew international transport of goods. placements do not have to warn selling insurance in Uruguay. and passenger liability n Shipowners liability for buyers that their insurer is not marine oil pollution n Personal accident subject to local supervision. (financial guarantee cover for public Information provided by Axco. or insurance) transport passengers For free trial access to global insurance intelligence, visit axcoinfo.com.

BUSINESS INSURANCE JUNE 2021 11 LEGAL BRIEFS

Court of Appeals in Cincinnati last year, in Noelle Lee v. Robert J. Fisher et al. Mr. Knoxville, Tennessee-based CIC sued to Fisher is the San Francisco-based compa- DOCKET stop an IRS reporting requirement for ny’s chairman. microcaptives, which are also known as The complaint charged the company 831(b) captives. with breach of fiduciary duty, aiding and Over the past several years, the IRS abetting breach of fiduciary duty, abuse of has won several court rulings in which control, unjust enrichment, and violation it alleged that microcaptives are not of securities law and regulation. engaged in insurance and are instead used The court held the company’s exclusive CONTRACTOR ADMITS by wealthy individuals and family busi- forum provision is valid. “Plaintiff does TO OSHA VIOLATION nesses to avoid taxes. As part of its inves- not point to any statute or judicial deci- tigations into microcaptives, in 2016 the sion that clearly states that enforcing the A New Jersey general contractor IRS imposed rigorous reporting require- forum selection clause would contravene admitted in federal court to wilfully Restaurants’ case ments on captive managers involved with a strong public policy,” the court said in violating Occupational Safety and microcaptives that it suspected might dismissing the case. Health Administration standards in avoids dismissal be used for tax evasion. Managers that Other companies have been charged in the death of a roofing worker in a did not meet the reporting requirements similar diversity suits, including Face- fall, the U.S. Department of Justice n Physical damage is not necessarily faced stiff penalties. book Inc. Another San Francisco judge reported. Derico Ferreira, owner visible to the eye, a federal district court CIC sued the IRS alleging that the dismissed the Facebook case, Natalie of Newark-based Trustworthy LLC, said in refusing to dismiss a COVID- reporting requirements violated the Ocegueda v. Mark Zuckerberg, et al., citing pleaded guilty to one count of 19 business interruption lawsuit filed by Administrative Procedure Act and the the company’s Delaware forum selection willful violation of OSHA standards Alabama restaurants. Congressional Review Act and that it clause as among her reasons for doing so. by failing to provide fall protection Three restaurant companies, including required congressional review before Under A.B. 979, which was signed into to employees installing a roof on North Birmingham-based Serendipitous going into effect. law by California Gov. Gavin Newsom a two-story house. The company LLC, had argued that the terms concern- The IRS countersued, arguing that last year, publicly traded companies in did not have a guardrail installed ing “loss” under Cincinnati Insurance CIC’s suit was barred by the Anti-In- the state must have at least one minority and provided no personal fall Co.’s coverage were ambiguous, according junction Act. That law requires taxpayers director by Dec. 31, 2021. protection to its workers on the to the ruling by the U.S. District Court in to pay a disputed tax and then sue for a roof, according to court documents. Birmingham in Serendipitous LLC/Melt et refund if it is later deemed invalid. Sompo files suit al. v. Cincinnati Insurance Co. Writing for a unanimous Supreme UNDER ARMOUR AGREES TO SEC SETTLEMENT The insurer had argued the restaurants Court, Associate Justice Elena Kagan in Bryant crash had not identified the physical loss or said: “A reporting requirement is not a Sports apparel manufacturer Under n damage to property needed to trigger tax; and a suit brought to set aside such a A Sompo International Holdings Ltd. Armour Inc. has agreed to pay $9 coverage, according to the ruling. rule is not one to enjoin a tax’s assessment unit has filed suit seeking a declaration million to settle U.S. Securities “The restaurants have alleged facts that, or collection. That is so even if the report- it is not obligated to indemnify the heli- and Exchange Commission charges if proven, constitute actual physical loss of ing rule will help the IRS bring in future copter company that allegedly arranged it misled investors. The SEC said their buildings and furniture during the tax revenue — here, by identifying sham the flight in which basketball star Kobe the Baltimore-based company pandemic,” the ruling said. insurance transactions.” Bryant was killed last year. misled investors as to the bases “The fact that the COVID-19 virus The case was remanded for further pro- Nine people, including Mr. Bry- of its revenue growth and failed has not physically altered the restaurants’ ceedings. ant, his daughter Gianna and the pilot, to disclose known uncertainties property does not mean that coverage nec- were killed on Jan. 26, 2020, when their about its future revenue prospects. essarily is not available for impacts to the Sikorsky helicopter crashed en route from The SEC said that by the second property that are invisible to the naked eye. John Wayne Airport in Santa Ana, Cali- half of 2015, Under Amour’s “The policy language indicates that fornia, to Camarillo Airport. internal revenue and revenue the insurer understands that an insured Santa Ana-based OC Helicopters, growth forecasts for the third may suffer physical loss without physical which allegedly had provided flight oper- and fourth quarters of that year alteration of property because the policy ations for Mr. Bryant, his family and his began to indicate shortfalls from excludes from coverage some expenses businesses, was named as a defendant in analysts’ revenue estimates. incurred because of invisible substances four lawsuits filed by Mr. Bryant’s widow like vapor and fumes,” it said. “Cincinnati and others in the crash, according to the UTAH SECURITY FIRM could have excluded invisible substances lawsuit, Endurance Assurance Corp. vs. OC SETTLES FTC CHARGES like viruses but did not,” the ruling said, Helicopters LLC, which was filed in U.S. A Utah home security and in denying Cincinnati Insurance’s motion District Court in Santa Ana. monitoring company has agreed to to dismiss the case. Sompo unit Endurance Assurance, pay $20 million to settle Federal A Cincinnati spokeswoman said in a which provided a policy with a $10 mil- Trade Commission charges it statement, “Our commercial property Diversity suit against lion limit for bodily injury and property misused credit reports to help insurance policies require direct physi- The Gap dismissed damage to OC Helicopters, has defended unqualified customers obtain cal loss or damage to property and do not the company subject to a reservation of financing for the company’s n provide coverage in this case.” A federal district court dismissed a rights, according to the lawsuit. products and services. The diversity lawsuit filed against The Gap The lawsuit says Endurance is not obli- agency said Provo-based Vivint High court reverses Inc., citing the company’s bylaws, which gated to provide insurance coverage to the Smart Homes Inc. had agreed designate the Delaware Court of Chan- company under the non-owned aircraft to pay a $15 million civil penalty microcaptives ruling cery as the exclusive forum for claims. liability endorsement in its policy that and an additional $5 million to Plaintiff Noelle Lee alleged in the deriv- excludes “rotowing” aircraft, which would compensate injured customers. The n The U.S. Supreme Court ruled that a ative lawsuit, which was filed in U.S. Dis- include the Sikorsky helicopter. FTC charged that Vivint violated captive manager’s challenge to a report- trict Court in San Francisco in September Endurance is seeking a declaration from the Fair Credit Reporting Act by ing requirement for microcaptives is not 2020, that the clothing retailer had failed the court that the claims asserted against improperly obtaining credit reports barred by federal law, reversing a federal to create any “true racial or ethnic diver- OC Helicopters do not fall within the to qualify potential customers appeals court ruling in the case. sity” on its board or in its top leadership scope of its coverage and that it does not for financing for its smarthome In CIC Services LLC v. Internal Revenue roles despite its written proclamations to have a duty to defend or indemnify OC monitoring and security products. Service, which was heard by the 6th U.S. the contrary, according to the complaint Helicopters or reimburse defense costs.

12 JUNE 2021 BUSINESS INSURANCE VIEW FROM THE TOP Mitch Blaser MOSAIC INSURANCE

What are the challenges of starting What are the lines of business and they are usually noncorrelated Q up multinational operations Q you are starting with? risks. These are typically more isolated in the middle of a pandemic? activities and events and our reinsurance We are focused on seven lines program takes the top off our exposure. Some are the obvious ones of just Aof business and these are highly So you have less frequency and you Anot being able to sit around a table specialized. They are really difficult lines can control the severity in these lines — especially with Lloyd’s, which is 300 to be in, they require a high technical of business. It also comes back to the years old and it started in a coffee knowledge to write the business, they technicalities in the underwriting, too. shop so everything’s been face-to-face. are very relevant in terms of today’s But the world has done a great job economies and we expect they will be Are you looking to expand the adapting. It’s not that the office is dead critical to the new economies going Q number of classes of business? and we’ve lost what we had before, it’s forward so the demand and risk will grow. Mitch Blaser founded private more about we’ve gained the ability to Cyber is an example; it’s a tough line We will be opportunistic. If a equity-backed Mosaic Insurance operate in a virtual environment. We but if you have the right people who Abusiness opportunity is there — we’ve now know how to get together, coalesce know how to support the line and you already looked at a few and there may Holdings Inc. in Bermuda in around ideas and make things happen are able to build that business, you would be one that we follow up on — that February to focus on specialty virtually that we just didn’t do before. think of it not only being relevant today fits our model, that has a niche area risks. The company’s main I found the biggest disadvantage but it’s not going away anytime soon. of focus, that requires really technical was more on the admin side, when underwriting and talent capability, we underwriting vehicle is a Lloyd’s you need signatures and the actual have an opportunistic model for those of London syndicate, but it also documentation for what you’ve already situations. That does not mean we are plans to partner with third-party agreed to. People have started having looking for x, y or z, but if x, y or z shows to create legal documents behind the up and it fits the model, we’ll pull the capital providers. Mr. Blaser’s documents to support the fact that trigger. It comes down to people. long career in insurance has you don’t have a wet signature. We found ways to get it done but it slows People look at private equity-backed included nearly 30 years at you down a bit on the admin side. Q companies and think they’ll last Marsh & McLennan Cos. Inc. about five years before there’s a recap After some time at Swiss Re You have about 45 people on staff, or a sale or an IPO. What’s the story Q but how many have you actually met? with your private equity backing? Ltd., he joined Ironshore Inc. in 2007, where he also worked When you’re focusing on starting a new With Golden Gate Capital, we have with his co-CEO at Mosaic, Acompany you think about the people Aa perpetual fund structure, so they you know, so I’ve met about three-quarters are long-term holders. It’s so hard to Mark Wheeler. He recently of the team at some point in my career. predict what the future will bring, but spoke with Business Insurance the ability to have that flexibility is huge Editor Gavin Souter about the Now that you have operations up Political violence is another one. so we can monetize if that becomes Q and running, what’s your strategy? Who would have thought a year ago a critical opportunity for some reason concept behind Mosaic and its that the U.S. would be a big market for or they can hold for up to 20 years. So strategy. Edited excerpts follow. The underpinning of our hybrid model political violence coverage? The world we have a ton of flexibility in how we Ais the talent that we are able to attract is changing dramatically. Political risk, work together, in how we build the and hire, in parallel with the building of which is basically governments behaving company and eventually monetize. our technology platform. Not having a badly, faces the same kind of issue. legacy infrastructure is almost as important For transactional liability, each month Most companies have one as not having a legacy balance sheet. seems to set a record for mergers and Q CEO, but you have co-CEOs. The centerpiece of our model is our acquisitions, so that will probably be our What’s the thinking behind that? Lloyd’s syndicate, so getting that up and biggest line. We’ll also be in financial running was absolutely critical and that’s institution lines and professional liability. We worked together for years. One been one of the time-consuming things Another way to think about these lines Aof the hats I wore at Ironshore was that we’ve done on a virtual basis. In terms of business is that they are lines that CFO, and I got to know Mark really well of the initial focus those are the key boxes brokers typically have problems placing. that way. We worked together building that we want to be able to tick, so that the international franchise of Ironshore. we can get our underwriters underwriting Isn’t there something to be We have a very close friendship as well and align our partners on the capital side. Q said for balancing a book of as a partnership, and we seem to be able We are talking to different types of business with less volatile lines? to leverage each other’s strengths — he capital to support us, between consortiums can focus a lot on the underwriting side, and trade capital, and we’ll also have some There is a degree of volatility in these and I can focus on the running of the less traditional capital supporting us. Alines, but there’s not the frequency, business side. It’s a great complement.

Who would have thought a year ago that the U.S. would be a big market for political violence coverage? The world is changing dramatically. Political risk, which is basically governments behaving badly, faces the same kind of issue.

BUSINESS INSURANCE JUNE 2021 13 many other ways to make use of innova- — were reviewed by BI editors. After tions that were brought into their own by selecting finalists, we contacted references the circumstances of the past year. to learn more details about the nominees’ The 40 honorees selected for the awards achievements. program represent some of the most tal- In the following pages you can read NORTHEAST he rising industry stars that we ented leaders emerging in the industry. interviews with all of this year’s win- PAGE 15 honor with the 2021 Business To be eligible for the award, nominees ners and learn their top tips for working Insurance Break Out Awards not must work in commercial insurance or remotely, advice on navigating the hard only adapted to a new way of related sectors and cannot have worked in market and ideas on attracting more working during the coronavirus the field for more than 15 years. young people into the industry, among T pandemic but found ways to excel To maintain diversity in geography and other things. On the lighter side, you amid the challenging conditions. types of organization, the honorees are can also learn about their new hobbies, Making use of technology to stay in grouped in four regions of the United favorite meals and all-time top movies — touch with colleagues and provide clients States: Northeast, South, Midwest and “The Shawshank Redemption” and various with enhanced services will likely outlast West. All the nominations — which “Star Wars” episodes appear to have been lockdown restrictions, and the future highlighted the nominees’ client-service lockdown hits. Gavin Souter, editor SOUTH leaders of the industry will no doubt find skills, expertise and leadership qualities PAGE 18 2021 BREAK OUT AWARDS WINNERS

NORTHEAST SOUTH MIDWEST WEST Charlotte Allen Emily Beach Chris Butler Stephanie Bozzuto Commonwealth Financial Network Marsh LLC Velocity Risk Underwriters LLC Bozzuto & Associates Insurance Page 15 Page 18 Page 21 Services Inc., a unit of Acrisure LLC Page 24 Neuris Chalas Edward Brown Gerran Geyser Swiss Re America Holding Corp. Wiley Rein LLP CNA Financial Corp. Will Cea Page 15 Page 18 Page 21 Brown & Riding Insurance Services Inc. Olivia Derderian Renee Bruns Cody Griffin Page 24 Great American Insurance Group Arthur J. Gallagher & Co. Zurich North America MIDWEST Page 15 Page 18 Page 21 Ashley Fong Carpe Data Kevin Johnson Latosha Ellis Laura Johnson PAGE 21 Page 24 Munich Re Specialty Insurance Hunton Andrews Kurth LLP Axa XL, a unit of Axa SA Page 15 Page 18 Page 21 Shannon Gundersen Atlas General Insurance Services, Marek Krowka Felipe Garcia Stacie Kroll a unit of Risk Placement Services Inc. American International Group Inc. Alliant Insurance Services Inc. Arthur J. Gallagher & Co. Page 24 Page 16 Page 19 Page 22 Jessica Hanneman Kimberly Mann Daniel Jones Bradley Nebel Marsh & McLennan Agency LLC Marsh LLC Aon PLC BMS Group Page 25 Page 16 Page 19 Page 22 Brett Richesin Raymond Mascia Kevin McCarthy Rob Quast Alliant Insurance Services Inc. Anderson Kill P.C. IBTX, a unit of Acrisure LLC The Kroger Co. Page 25 Page 16 Page 19 Page 22 Conor Sweeney Lian Phua William Nichols Lacy Rex WEST CNA Financial Corp. Axa XL, a unit of Axa SA Amwins Group Inc. Oswald Cos. Page 25 PAGE 24 Page 16 Page 19 Page 22 Chris Theveny Christopher Pizzo Karen Salmon Sam Tashima Crum & Forster Holdings Corp. Fox Rothschild LLP Gallagher Bassett Services Inc. Aon PLC Page 25 Page 17 Page 20 Page 23 Caroline Thompson Miranda Rodriguez Robert Webber David Wald Cowbell Cyber Inc. Brookfield Asset Management Inc. Burns & Wilcox Aclaimant Inc. Page 26 Page 17 Page 20 Page 23 Amy Torres CFC Underwriting Ltd. Page 26

14 JUNE 2021 BUSINESS INSURANCE NORTHEAST

more intense than I’ve ever seen. One what’s worked is carving out 40 minutes advantage is having really strong con- for a walk and to get some fresh air. trols; applications are including the con- trol side in greater detail. Stronger con- What should the industry do to attract trols make you a better risk. Strengthen more young people to work in it? your controls. We need to do a much better job of out- reach. As a whole, we haven’t put enough How will your work change going forward? of an effort into outreach and a market- It changes constantly, and the pandem- ing perspective. Some of our financial ic pushed it even faster. The pandemic industry peers do a great job of that from has pushed many companies to speed a marketing perspective. up some strategies, like looking at doing more frequent scenario tests and revis- What is something about you that would surprise people? CHARLOTTE ALLEN 37 iting risk appetite. Things that weren’t NEURIS CHALAS 38 common before are now top of mind. When I was younger, in elementary then Manager, enterprise risk Head, facultative property North America high school, I was very competitive in Commonwealth Financial Network What should the industry do to attract Swiss Re America Holding Corp. martial arts and even competed to be in more young people to work in it? Waltham, Mass. New York the Olympics. Risk management is naturally kind of Charlotte Allen joined Commonwealth behind the scenes and doesn’t get as Neuris Chalas joined Swiss Re in 2013 What’s one habit or hobby you Financial Network after brief stints as much recognition as more visible roles. after five years as an underwriter for gen- adopted during the pandemic? both a teacher and working for her Maybe we need to be more visible — in eral property and inland marine at Crum Cooking. It’s become a passion. I never father’s roofing company. “Lots of risk our organizations, in our industry — and & Forster and Great American Insur- cooked regularly prior to the pandemic. there,” she said of the latter. Her desire show our value from behind the curtain. ance Co. He was recruited out of college I’ve always loved Italian food, so I start- to chart her own course brought her to by Crum & Forster into its underwriter ed learning how to make some of it at Commonwealth 10 years ago. “In our What is something about you training program. Mr. Chalas was pro- home. That’s something that definitely jobs, helping your company manage risk, that would surprise people? moted from national team leader to Swiss only happened because of the pandemic. you’re helping to protect a company that I grew up on a farm and I know how to Re’s North American head of facultative Otherwise, I would have continued with you care about,” she said. drive a forklift. property reinsurance in April 2020. my routine of eating out too much.

What’s your advice on navigating What’s one habit or hobby you What’s your top tip for All-time favorite movie? the current insurance market? adopted during the pandemic? working remotely? “The Shawshank Redemption” It’s so hard right now. All the forms Backgammon. I’m starting to really like Really boxing out your time. Creating we have to fill out have become more backgammon. My husband and I have pockets of time when you’re going to step What is your favorite meal? detailed; a good example is cyber liability. been doing that a lot. I’m a little more away from your makeshift office, laptop Anything Italian. Specifically, the spicy What we have to complete now is much competitive than I thought I was. or wherever you are working. For me, rigatoni at Carbone (in New York).

What’s your advice on navigating the that time for family, for working out, etc. current insurance market? We’re tightening up a little on appetite What’s your advice on navigating and doing a more thorough evaluation the current insurance market? of each account. I keep communication Understanding the nuances of the mar- open with my brokers and try to under- ket right now and the customers and the stand the needs of the insured. clients through that lens. It’s not a one- size-fits-all market, and the dynamics How will your work change going forward? are different in different lines, segments, Right now, what I’m focusing on is man- geographies. You must take a very lasered aging a larger staff, moving from one to approach. two. I am working toward more of a management role, which will bring an How will your work change going forward? OLIVIA DERDERIAN 32 added dimension. KEVIN JOHNSON 34 The biggest change will be around the way we engage with our partners. The Master underwriter President, insurance programs What should the industry do to attract element of more frequent and more casu- Great American Insurance Group more young people to work in it? Munich Re Specialty Insurance al engagements will supplement in-per- New York Emphasize flexibility, working from home. Philadelphia son meetings. People are more attracted now to flexibility. “There’s a need for people who under- Working from home is a big attraction. It’s Kevin Johnson joined Munich Re What should the industry do to attract stand the technical side of environmental important to have some sort of flexibility. Specialty right out of school through its more young people to work in it? insurance,” said Olivia Derderian, who underwriting graduate trainee program We need to continue to engage with the has been with Great American Insurance What’s one habit or hobby you adopted and became president of the programs colleges and universities that are building Group for six years and is preparing to during the pandemic? business unit in October 2019 after 12 the pipeline. Outside of that, the industry expand her staff. Trained as an environ- Yoga. I had never really gotten into years with the company. The son of needs to do better at articulating why insur- mental engineer at Manhattan College, yoga before, but during the pandemic it former Pennsylvania deputy insurance ance is a great career for a broader audience. she was told by a friend’s mother of the gave me something to do before work commissioner Stephen Johnson, Kevin insurance industry’s needs for environ- now that I don’t have to commute. I do Johnson was deliberate about choosing What’s one habit or hobby you mental engineers. Prior to joining Great short classes, 25 minutes online, and have his career, beginning with the risk man- adopted during the pandemic? American, she worked for Langan Engi- found that to be very helpful. agement program at Temple University. Taking regular long walks has become part neering and Environmental Services. of my routine around getting away from All-time favorite movie? What’s your top tip for working remotely? my desk. Good lunchtime walks. I even What’s your top tip for working remotely? I love the movie “Moonstruck.” Scheduling, on the personal as well as got a fitness watch to keep me honest. Set a schedule for yourself. Stick to a rou- professional front. Scheduling personal tine — the same routine every day. Work What is your favorite meal? time … has been important for me over All-time favorite movie? out in the morning, for example. It’s between pizza and shawarma. the past year. Making sure to carve out “The Shawshank Redemption.”

BUSINESS INSURANCE JUNE 2021 15 NORTHEAST

space from work. shake and in-person meeting, but my What’s your advice on navigating top tip would be to stay connected to the the current insurance market? people that you work with. You have to be flexible and open-mind- ed. Listen to your clients, hear them out, What’s your advice on navigating what their concerns are. The market’s the current insurance market? evolving so much at the moment. Always be curious. You need to think about what the risks are, how they How will your work change impact your client’s business and how to going forward? effectively present them to the insurance There is more embrace from an indus- market. Communicating and managing try standpoint of insurtech, technology, expectations with clients and insurers is AI, predictive analytics. The industry also essential to make sure there are no MAREK KROWKA 36 is adapting well from a data standpoint KIMBERLY MANN 32 surprises at the end of the day. and modernizing infrastructure, using Chief underwriting officer, North Senior vice president What should the industry do to attract America financial lines data capture and real-time analytics. Certainly, a willingness to embrace Marsh LLC more young people to work in it? American International Group Inc. working from home. Philadelphia If COVID taught us anything it’s that there New York are so many unforeseeable risks. Campaign- What should the industry do to attract Kimberly Mann’s insurance career ing around the risk and the changing world Marek Krowka, who was promoted to more young people to work in it? started out in the mailroom at Marsh and environment is probably the best way to chief underwriting officer in February, The insurance industry needs to do a bet- in 2012. She had just graduated from reach young people who are active in that. runs AIG’s North America financial ter job of marketing itself and the many Clemson University in South Carolina lines, including public and private direc- facets of what is involved in insurance, and, unsure of her career path, settled on What is something about you tors and officers liability coverage, cyber effectively conveying that it’s a home for a six-month temp assignment. Within that would surprise people? and professional liability. Prior to that, all types of talent — lawyers, data scien- a few weeks she had interviewed and I climbed Mount Kilimanjaro in 2019. he spent some 14 months overseeing tists. The opportunities are endless. moved into the environmental practice as public and private nonprofit portfolios an advisory rep. She’s worked in Marsh’s What’s one habit or hobby you at AIG. He joined AIG after 10 years at What’s one habit or hobby you environmental group ever since. adopted during the pandemic? Arch Capital Group. adopted during the pandemic? I spent the winter learning how to ski. I’ve been doing a lot of yard work. I had What’s your top tip for working remotely? What’s your top tip for working remotely? some trees taken down and split a bunch We work in such a people business that What is your favorite meal? Make sure to step away from your office. of firewood. I’ve been fixing things you have to do your best to connect with As a Philadelphian born and raised, I’m It’s so easy to be in your office or in front around the property — something out- your clients as much as possible, wheth- going to have to go with the cheesesteak. of your computer all the time. You need doors that was there and needed to get er it’s through Zoom meetings or phone But to be clear, it’s got to be a true Phil- to make sure to preserve some personal done. calls. It’s never going to replace the hand- adelphia cheesesteak.

ple the COVID-19 pandemic. A ton of possible on the phone and walking around business interruption coverage claims in your apartment or house is good so as have been filed in the last year, and not to be sitting down all the time. while those lawsuits are similar to prior business interruption claims they are also How will your work change different, and they present new wrinkles going forward? that attorneys and policyholders need to The definition of innovation is going to adapt to. As a policyholder attorney, you be very different. Part of how insurers need to be able to roll with the punches. can be innovative is to look at how people are working and communicating in this How will your work change going forward? new reality. In terms of the practice of law, in the near future more things are going to be done What should the industry do to attract more young people to work in it? RAYMOND MASCIA 36 virtually, like court appearances and depo- LIAN PHUA 37 sitions. I don’t know if it’s going to last for- Insurance has not done a good job of Shareholder Underwriting manager, ever, but it’s going to be here to stay for a bit. political risk, credit and bond communicating that it is an innovative Anderson Kill P.C. industry. Younger professionals don’t Axa XL, a unit of Axa SA New York What is something about you realize insurance is trying to disrupt and that would surprise people? New York innovate with the future. If they could While at St. John’s University School I coach a youth hockey travel team, hear the testimonials of other young of Law in Queens, New York, Raymond which is nice because it gives me some Lian Phua started in the industry in 2006 insurance professionals that would be Mascia hadn’t considered being a policy- interactions outside of the business world as a risk analyst at a boutique credit insur- more helpful. holder insurance attorney, but a summer where I get to mentor kids and meet er. She had seen the job posted on New associate position at Anderson Kill in some great parents. York University’s career site and thought What is something about you 2008 changed that. Inspired by how the it sounded intriguing. Ms. Phua studied that would surprise people? attorneys came up with creative insur- What’s one habit or hobby you economics as an undergraduate at NYU I’m first generation. My dad is from ance coverage arguments for clients, he adopted during the pandemic? and has a deep interest in world affairs and Singapore, my mum is from China, but joined the firm in 2009. He left in 2013 Photography. I took a trip to Africa two the global economy. A risk analyst role at I’m from the Jersey Shore, and I went to to clerk for a district judge in New York years ago and I bought a camera and I QBE North America followed, then an high school with someone from the show but returned two years later to build his started getting into it and then I stopped. MBA from Columbia Business School “Jersey Shore.” insurance practice. When the pandemic hit, I had a lot of before she joined Axa XL in 2013. downtime and I went out and did a lot What’s one habit or hobby you What’s your advice on navigating of street photography in New York City. What’s your top tip for working remotely? adopted during the pandemic? the current insurance market? Try to maintain a morning routine as I’ve taken an interest in all things interior Policyholders and their attorneys need to What is your favorite meal? much as you had when you were working design — how to do more with less, how stay ahead of the game. Take for exam- Pizza. in the office. Doing conference calls if to make your space feel comfortable.

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a Zoom call where we’re discussing the I’m home I find myself having to pivot intricacies of insurance regulation when from being a wife, a mother, to being an the 3-year-old runs into the room half- employee. I like to structure my days start- dressed covered with paint is not exactly ing the day prior, so that I have everything a professional look. at my disposal to be in the work mindset.

What’s your advice on navigating What’s your advice on navigating the current insurance market? the current insurance market? Innovation and flexibility are as import- Start your discussions early to avoid any ant to success in the insurance business as surprises. I recommend starting renew- they are to any other business. Success in al discussions 60 to 90 days in advance, this industry in the coming years will rest but the earlier the better. Even for those with those who accept that rather than who have a clean loss history who expect CHRISTOPHER PIZZO 36 those who push back against it. MIRANDA RODRIGUEZ 31 no surprises I would advise to expect the unexpected. Partner and chair, insurance practice group How will your work change going forward? Vice president, risk and insurance Fox Rothschild LLP We’ve all learned that our geographic Brookfield Asset Management Inc. How will your work change going forward? Morristown, New Jersey location is not necessarily directly relat- New York As a risk manager it’s incumbent upon ed to productivity. That stands in con- us to think outside the box and in ways Christopher Pizzo learned the insur- trast to our industry’s 50-state regulatory Miranda Rodriguez entered the insur- where we perhaps haven’t had much focus ance business on the job. While attend- scheme, which is by its nature defined by ance industry in 2010 through a gradu- previously. The pandemic is the perfect ing the University of Miami School of geographic boundaries. Navigating that ate rotation program at Willis Towers example. No one could ever have expect- Law he interned at a small insurance ser- tension in the future will be a challenge Watson PLC. After studying finance ed we would be in a global pandemic and vices company. Upon his graduation, the for our business, and I suspect we will all at Fordham University, she had envi- that our way of life would be so severely company asked him to join the business have to continue the process of broaden- sioned a career in banking but changed altered. Being aware, cognizant, doing as associate general counsel. That was in ing the horizon of our practice. tack. At Willis she worked with several your research, asking the right questions, 2009. Later he started his own law firm, high-profile clients, including Brookfield availing yourself to a broader knowledge was a partner in the corporate practice of What is something about you Asset Management. When Brookfield base — all goes a very long way. a national law firm, and then joined Fox that would surprise people? approached her to join its team in 2013, Rothschild in 2019. One of my favorite hobbies and interests she jumped at the chance. What is something about you is power sports — wave runners in the that would surprise people? What’s your top tip for summer, snowmobiles in the winter. What’s your top tip for working remotely? I’m a DIYer, so I enjoy building. I’m very working remotely? Being organized with your day. COVID handy with miter saw tools. Keep your kids on another floor of the All-time favorite movie? has presented all of us with challenges, house. I have three little kids and they “Goodfellas.” I’ve been a (Martin) Scorsese and everyone’s situation is different. I’m in What is your favorite meal? are the best thing in my life, but having fan my entire life. the office a few days a week, though when Mediterranean — hands down.

Celebrating our Break Out Stars! Laura Johnson Lian Phua 2021 Honoree, Midwest region 2021 Honoree, Northeast region

AXA XL is committed to building a global workplace that works for everyone; one in which all employees are treated with dignity and respect and where individual differences are encouraged and valued. Know You Can axaxl.com BUSINESS INSURANCE JUNE 2021 17 AXA, the AXA and XL logos are trademarks of AXA SA or its affiliates. AXA XL is a division of AXA Group providing products and services through three business groups: AXA XL Insurance, AXA XL Reinsurance and AXA XL Risk Consulting. © 2021

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colleagues every day. make sure you are interacting with those you would interact with if you weren’t What’s your advice on navigating working remotely. the current insurance market? The biggest thing on the broker side is How will your work change having as much information that you going forward? can gather as to why the market is in the The world of cybersecurity and data situation it’s in. You have to give tough privacy is constantly changing, and messages to your clients every day. There the cyber insurance market is relatively are other economic and macro items young. The risks and coverages will con- happening around their business. Also, tinue to evolve, and my work will evolve. supply them with data and analytics. What should the industry do to attract How will your work change more young people to work in it? EMILY BEACH 34 EDWARD BROWN 36 going forward? Educate them. Insurance involves things Senior vice president, account executive Everybody has realized that we can work Partner that happen that aren’t supposed to hap- Marsh LLC remotely and still be successful on the Wiley Rein LLP pen. You get to deal with a lot of cut- Atlanta broker side, working with clients. It has Washington ting-edge issues and technology. It’s fun. allowed us to be more nimble and flex- People who get into the industry actually A summer internship at Marsh in ible. That was lacking in the insurance Cyber liability and data security issues like it. It’s just getting them in the door Atlanta was “a dream come true” for industry prior to this. were emerging just as Edward “Ted” in the first place. then-University of Georgia undergrad Brown was starting his legal career after Emily Beach, who agrees she’s one of the What’s one habit or hobby you graduating from George Mason Univer- What’s one habit or hobby you few who arrived in the insurance industry adopted during the pandemic? sity School of Law. A strong background adopted during the pandemic? with a degree in risk management and I have never been into fitness or working in finance, including a master’s in busi- I started brewing beer. insurance. She says one of the best ways out. I didn’t start right at the beginning ness administration degree from Virginia to recruit young talent to the industry is of the pandemic, but later I felt so anx- Polytechnic Institute and State Univer- What is something about you to visit campuses and offer internships. ious about being around the house, so I sity, helped stir his interest in one of the that would surprise people? found a gym I liked and started taking costliest risks facing any organization. That’s a hard question to answer. I am an What’s your top tip for working remotely? spin classes and exercising every day. “I have seen so much now and the one open book. I like the outdoors and peo- Staying organized with whatever meth- thing that surprises me is how surprised ple will know that about me right away. od works for you, whether it’s an online All-time favorite movie? companies are when they are targeted,” calendar or agenda. Write your to-do list. I go back to my childhood, and my favor- he said. “It can happen to anybody.” All-time favorite movie? Stay engaged with colleagues. It makes ite movie is “Now and Then.” It’s light- “Forrest Gump.” I am also a financial you feel like you are still part of the orga- hearted and reminds me of my friends What’s your top tip for working remotely? nerd and I lived through the period, so I nization even though you are not seeing whom I am still very close with. Keep a schedule. Keep interacting and also enjoyed “The Big Short.”

keeping the engagement going — just important to step away from your desk asking, “Hey, how are you doing?” and be in a different space.

What’s your advice on navigating How will your work change going forward? the current insurance market? We are going to be very busy for some Communication and empathy go hand in time. The business model of law firms is hand. Have that conversation with your going to change in terms of the ways that client, what they are trying to achieve, we leverage technology, whether that is where they are … and relay that to the meeting with clients remotely, less travel, carriers. Many clients are trying to save some sort of a hybrid work schedule. It’s a few dollars to keep doors open. Have exciting but took a pandemic for us to see that open mindset to keeping coverages how much technology we could leverage you need. to help clients and have work-life balance.

RENEE BRUNS 37 How will your work change LATOSHA ELLIS 42 What should the industry do to attract Area client service director, small business going forward? Associate more young people to work in it? Arthur J. Gallagher & Co. The biggest thing I am excited about is Hunton Andrews Kurth LLP We have to be more inclusive, not just Atlanta we have moved to a remote environment. Washington with young people but with women and Our talent pool is no longer limited to people of color. The younger genera- After studying psychology as an under- one place. We have a tremendous ability Having a few family members already tion, those sorts of things are important grad and planning to continue her edu- to get the right talent. working in insurance, Latosha Ellis said to them. Inclusion will attract younger cation to become a clinical psychologist, she tried to avoid the industry. But after people. That, and making more room at Renee Bruns took a summer job with What is something about you getting a business degree from the Uni- the table for new people. insurance broker Hylant Group. That that would surprise people? versity of Cincinnati that’s precisely where changed her career direction, but she I love adventure. I am a big traveler, and she landed, working as an underwriter for What’s one habit or hobby you said the early training has proved use- I try to do as much adventure as possi- several companies and learning everything adopted during the pandemic? ful in talking with small-business clients ble. Scuba diving. Parasailing. And I am from claims to marketing to policy ana- Roller skating. I used to skate when I was and understanding their needs, especially working on my pilot license. So much lytics. An MBA followed and later a law younger. During the pandemic I saw all amid the challenges of the pandemic. of my life (as a person in a wheelchair), degree and job offers: “There was a demand of these Tik Tok videos of people roller people are telling me, ‘No, you can’t do from the insurance industry for litigators.” skating and they looked so cool. What’s your top tip for working remotely? that.’ Let me prove you wrong. I want to Stay connected with your team and live life and enjoy it. What’s your top tip for working remotely? All-time favorite movie? your clients. There are a lot of ways to Just have a separation of office and living. “Pretty Woman.” do that — Zoom calls, web calls, phone What’s one habit or hobby you Keeping business business and personal calls, text messages. Talking about things adopted during the pandemic? personal is easy with those boundaries. What is your favorite meal? that are not always work related is key to I had two plants, and I now have 17. We could work for 24 hours so it’s Hamburgers and fries.

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How will your work change going forward? tle earlier so that around 6 p.m. you can put We have yet to see the impact of the the phone down and spend time with fam- pandemic in the insurance market. One ily or maintaining your own well-being. thing that is changing is having conver- sations that you don’t have an answer for, What is your advice on navigating and that is new in my line of work. the current insurance market? We’re in a hard market, so we’re going to What should the industry do to attract see a significant increase in the amount of more young people to work in it? new business — so your underwriters will Have young folks attract young folks. be busier than they typically have been. It Have younger brokers and younger pro- can be hard to get a quote, so try to stay in fessionals reaching out to universities. constant communication with your under- writers and partner carriers, knowing that What is something about you you may not have a bindable document. FELIPE GARCIA 32 that would surprise people? DANIEL JONES 30 First vice president, public entity I am a singer and music is my passion. Senior broker What is something about you Alliant Insurance Services Inc. I used to be the lead singer of a boy band Aon PLC that would surprise people? Lake Mary, Florida called XY Limited and performed in music Miami It would probably be that I am a former venues on Sunset Boulevard in California. (NCAA) Division I athlete. I played Raised by immigrant parents, Felipe I still like to jam here and there with some After working as a stock trader, Daniel football at Northwestern University and Garcia said he was driven early to pur- karaoke sessions now, or sing my daughter “DJ” Jones started out in the insurance enjoyed those four years. Also, I’m not sue his education. A strict father who to sleep, reliving the good old days. industry in 2014 as a personal lines agent. ashamed to admit I’m still a pretty avid instilled a passion to “do what is expect- Although focused on becoming a finan- video-gamer. ed and more” also helped fuel the drive What’s one habit or hobby you cial adviser, he was urged by a friend who that led to an “accidental” career in adopted during the pandemic? worked in Aon’s Chicago office to try What is a hobby or habit that you insurance. Mr. Garcia, who specializ- I got a pandemic dog, a golden retriever. commercial insurance. Shortly after, he adopted during the pandemic? es in creating cyber liability insurance I became a dog person. interviewed for a middle-market broking During the pandemic I became a father programs for public entities, said he is position and has worked within the prac- for the first time, so I would say that I driven by challenges. All-time favorite movie? tice group ever since. started a hobby of researching child The original “Jurassic Park.” development. What’s your top tip for working remotely? What is your top tip for working remotely? Treat it like you would any day, working What is your favorite meal? Aside from time management, my biggest All-time favorite movie? in the office. For me, it’s getting up, tak- Anything Mexican because of my heri- advice is trying to find a work-life balance. “Remembering the Titans,” because with ing a shower and getting dressed — not tage, but Italian and Cuban are up there, My struggle has been figuring out when my former football and sports back- being in pajamas all day. Having a sched- which is why I married someone who is to shut down work and focus on family. I ground, I can appreciate the great themes ule like you would in the office. both Cuban and Italian. would say to maybe start the workday a lit- in that movie.

lar workday; that’s what sets me up for moment to breathe. I wish I had done the day. more of that.

What’s your advice on navigating What’s your advice on navigating the current insurance market? the current insurance market? It’s a challenging market, so tactics used Manage expectations — don’t wait until in the past to create positive outcomes the last minute for surprises. People live for clients may no longer work. It’s not in fear of delivering bad news, but it has just about placing insurance, it’s how we to be delivered at some point. provide a better risk management solu- So, managing expectations and explain- tion to clients. It also means explaining ing the facts behind the situation to cli- claims and looking at loss trends and ents is important. We sit between retail- developing strategies on how to improve ers and underwriters, and we don’t want KEVIN McCARTHY 36 those trends. WILLIAM NICHOLS 43 to surprise anyone at the last minute. Vice president, property & casualty What should the industry do to attract Chief operating officer, Amwins Brokerage How will your work change going forward? IBTX, a unit of Acrisure LLC more young people to work in it? Amwins Group Inc. I don’t think a permanent remote sit- Addison, Texas Industry leaders need to be active in Charlotte, North Carolina uation will persist for our business, but mentoring people and working with uni- some meetings and conversations may Majoring in finance and economics, versities and other groups to reach high A background in investment bank- not require travel. I do hope video per- Kevin McCarthy was well suited for an school and college students. Whatever ing and finance gave William Nichols sists and that people don’t revert back to insurance career. That opportunity came their interest, they need to know that an acquired knowledge of mergers and just using the phone, because it’s nice to when a family friend at an insurer told there is a fit in the insurance world. acquisitions and insurance. In 2007, when be able to see a face. him about an internship there. That he was looking for a change in venue, a led to a love of the industry, a job and What’s something about you friend at Amwins suggested he look into What is something about you eventually to a position as a producer at that would surprise people? the company. Mr. Nichols was hired as that would surprise people? IBTX, an agency partner of Acrisure, That my choice of music anytime — head of M&A and has never looked back. I married my high school sweetheart. My where he recently became a partner. whether working out or working — is parents also met in high school and got hard-core metal, which you would prob- What’s your top tip for working remotely? married, so it must be a family tradition. What’s your top tip for ably not guess by my outward appearance. Take a break. You can go from meeting working remotely? to meeting, but unlike the office there’s What’s one habit or hobby you Take a shower and get dressed every What’s one habit or hobby you no walk in the hallway and no conversa- adopted during the pandemic? morning as if you’re going to the office. adopted during the pandemic? tion opportunities because we oversched- Family dinners. Because there has been Also, have a space that is dedicated to Meditation. It’s been a great way for me ule ourselves when we’re at home. You less travel, there has been more time for your work — my laptop doesn’t leave to clear my mind and focus on the day, go from meetings to the dinner table and dinners with the family. I’ve also enjoyed my office at home. I treat it like a regu- and to decompress at the end of the day. there is no time to decompress. Take a cooking and grilling.

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claim pre-COVID, my advice in this mar- What’s your advice on navigating ket is to think creatively by turning to new the current insurance market? technology and more creative alternatives Communication is key. I’ve seen what’s to push resolution. working for us and what’s not working for our competition. Communication is How will your work change going forward? one of the most complex but most simple Because the court systems have been shut things we can do. It requires time, effort down and we haven’t seen trials for more and care. than a year, we have to prepare for what a trial will look like once things open up. What should the industry do to attract more young people to work in it? What should the industry do to attract The industry as a whole has done a good more young people to work in it? job as far as reaching out to college gradu- KAREN SALMON 39 I was once part of a summer program ROBERT WEBBER 32 ates. I think we need to do a better job of where interns rotated through the compa- reaching out to people already in the work- Vice president, health care ny’s insurance departments. It turned out Associate managing director force — anyone in finance, economics. Gallagher Bassett Services Inc. that 100% of them ended up remaining Burns & Wilcox What is something about you Houston in the insurance industry. This shows that Metairie, Louisiana it’s about putting them into a hands-on that would surprise people? As an undergrad, Karen Salmon was a situation for finding their niche. Robert “Cain” Webber was promoted in I am an avid dog person. My wife and I philosophy major at Indiana University, December to associate managing direc- started working for a number of canine where she became interested in bioeth- What is something about you tor of Burns & Wilcox after serving as organizations in 2015 and have fostered ics and health care ethics. After receiving that would surprise people? underwriting manager for its Louisiana north of 75 and probably close to 100 her law degree from New England Law, I have completed five ultra-marathons. I operations. He joined the wholesale bro- dogs over the past five or six years. she pursued a career in insurance law am also a triathlete and I race with a team kerage and managing underwriter in 2010 and health care, which took her to South out of Colorado called Base Performance. after graduating from the University of What’s one habit or hobby you Carolina and Georgia. In January, Ms. Mississippi with a risk management and adopted during the pandemic? Salmon started at Western Litigation, a What’s one habit or hobby you insurance degree. Kayaking. I’ve been going about three or division of Gallagher Bassett. adopted during the pandemic? four times a week. One thing Louisiana has I became a certified yoga teacher and What’s your top tip for a lot of is water. I do tend to go out after big What’s your advice on navigating meditation is a daily habit. My inspiration working remotely? rainstorms. When the water changes that the current insurance market? was my sister, who was diagnosed with Have a set space. Having a designated much so quickly, you never know how the A majority of jurisdictions have pushed stage-4 colon cancer and underwent six place to work is very important. The river is going to have changed. trial dates into 2022 or have not set dates. months of chemotherapy. She inspired dining room, the living room table, just As the claims goal for our clients is to me to connect with others, starting from doesn’t work for me. I believe in efficien- What is your favorite meal? deliver the same or better lifecycle as a a place of kindness. cy and focus. My wife’s eggplant parmigiana.

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What’s your advice on navigating always approach with the humility to the current insurance market? learn. Incorporate new insights into how Stay flexible. The rules we thought gov- you underwrite and how you approach erned don’t govern. We’re in a hard mar- your customers. ket, but are we really in a hard market with all the capital that continues to flow How will your work change in? Using underwriting as an example, going forward? you need to go beyond what a broker The whole concept of going virtual is tells you they need because the way that being pulled forward and accelerated you get the win may not be what they are because of COVID. We had to quickly asking for. You may have an idea that a adapt what we were doing and we saw broker hasn’t considered. a lot of new capabilities, but that’s just a microcosm of where the world is heading. What should the industry do to attract CHRIS BUTLER 35 GERRAN GEYSER 41 Increasingly leveraging data, technology more young people to work in it? and virtual solutions and incorporating Senior underwriter, large commercial We have to continue to engage with Vice president, risk control that into your service offering is probably Velocity Risk Underwriters LLC colleges and universities — I think CNA Financial Corp. the biggest change I see on the horizon. Chicago that’s huge — continue internship Chicago programs and reach out to people who What is something about you Chris Butler became interested in don’t know that insurance might be Gerran Geyser had every intention of that would surprise people? insurance after he landed an internship for them. And we need to encourage becoming an accountant but became a I grew up in South Africa. It was a fasci- at RLI Corp. On returning to the Uni- people to bring their authentic self to financial analyst after a job offer from nating time to grow up there because we versity of Illinois at Urbana-Champaign, work — that’s especially important to Arthur Andersen fell through when the were going through a lot of change with he took electives as a finance major that young people. firm collapsed during the Enron Corp. South Africa coming out of the apartheid would position him to enter the industry. scandal. In 2007, he joined the insurance years. People sometimes find that surpris- Specializing in property, after a couple of What is something about you industry in a financial planning position ing because I’ve lost most of my accent by jobs he helped launch Velocity’s Chicago that would surprise people? at CNA and has since held a variety of virtue of living here for a long time. office in 2018. I’m a very shy person and I spend a lot of financial, underwriting and risk control time and effort being outgoing. One of positions. What’s one habit or hobby you What’s your top tip for the things I did when I moved to Chicago adopted during the pandemic? working remotely? was to take improv and writing classes at What’s your advice on navigating I lived in a large condo building and run- Communication. Pick up the phone, Second City. the current insurance market? ning up and down stairs was one way to don’t just email or IM. It’s hard to build Always keep an open mind and contin- stay fit. a culture remotely so it’s things like a All-time favorite movie? ue to learn. The market is changing and Zoom happy hour or a daily team call “Star Wars: Episode III.” I know it’s in evolving so quickly, and as an organiza- All-time favorite movie? that are pivotal to success right now. the prequels, but it’s surprisingly complex. tion you need to stay very nimble and “The Shawshank Redemption”

When I talk to domestic underwriters, pretty difficult. Especially in the E&S they’re constantly raving about what kind world, you have to be at the forefront of of rate they can get — it makes me kind dissecting … these new and emerging of sad and jealous inside. We don’t have risks while also protecting the bottom that same dynamic on the international line at the same time. side. There’s so much uncertainty in the marketplace right now. How will your work change going forward? How will your work change going forward? I definitely think there is not going to 2020 really showed us that work- be as much travel. A lot of companies ing remotely can work. But insurance have found they can get just as much remains a relationship business, and it’s done working remote. I also feel like really hard and challenging to continue we’re going to have more collaboration CODY GRIFFIN 35 with those relationships when you can LAURA JOHNSON 32 on accounts going forward. Now that we only talk over the phone. are remote and things are happening over Vice president and head of international casualty Underwriting manager for E&S general liability videoconference, I find that we’re collab- Zurich North America What is something about you Axa XL, a unit of Axa SA orating more with other offices outside Schaumburg, Illinois that would surprise people? Chicago just Chicago. I’m an introvert. No one believes me, but Cody Griffin originally planned to use I swear to you I am. One of the leading Laura Johnson never considered a job What is something about you his finance degree from the University of functions of my job is to be market-fac- in insurance until Arthur J. Gallagher that would surprise people? Northern Colorado to become a stock ing and to continually meet new peo- & Co. recruiters announced internship I’m a bit of an adrenaline junkie. I’ve trader, but graduating in 2008 amid ple. I’m exhausted at the end of the day opportunities at a job fair at Illinois State been bungee jumping five times. the Great Recession prompted him to because I really do have to push myself to University. She scored a coveted intern- change plans. After landing an insurance get out there. ship and has been in the industry ever What’s one habit or hobby you internship at Liberty Mutual Holding since, beginning as a broker at Gallagh- adopted during the pandemic? Co. Inc., he knew he’d found his career. All-time favorite movie? er-owned Risk Placement Services Inc. Pelotoning — and does my baby count Mr. Griffin spent seven years with I like anything 1920s gangster-relat- and joining XL Catlin as an underwriter in as my hobby? I feel like my whole world American International Group Inc. ed, and I’m also a big fan of westerns. 2014. Although the avid traveler has been has revolved around him in this past year. before joining Zurich North America in Anytime “The Good, the Bad and the grounded due to the pandemic, she says January 2020. Ugly” comes on, I’ll sit through the entire working from home has given her more What is your favorite meal? thing. I enjoy the nostalgia. time to spend with her 1-year-old son. Definitely my mom’s lasagna. You can’t What’s your advice on navigating beat it; it’s the best dish I’ve had in my the current insurance market? What is your favorite meal? What’s your advice on navigating life and now the go-to dish when some- For international it’s a little bit different I like anything that is related to Mexican the current insurance market? one gets engaged, has a baby, passes than what we see on the domestic side. food. I love spiciness, I love cheesiness. The excess market has definitely been away. A lot of love goes into that meal.

BUSINESS INSURANCE JUNE 2021 21 MIDWEST

is the time I’m shutting off my computer I certainly see that in today’s market, and dedicating time to family.” we’re doing less face-to-face. I absolutely want to go back to face-to-face — that’s What’s your advice on navigating the the most important part of this industry. current insurance market? Those relationships created in person … Communication — just being open and they are absolutely the backbone of the transparent throughout. Tell a story using industry. the headlines to show how and why we got here. It helps people get level set that What should the industry do to attract this is the current cost of doing business. more young people to work in it? We need to educate them. We need to be What should the industry do to attract present. Other industries get a lot more more young people to work in it? publicity. Whether it’s through market- STACIE KROLL 38 Internship programs, training programs, BRADLEY NEBEL 34 ing, mentorships, college guest speaking mentorship programs. We’re going to or whatever it may be, we have to do a Executive director, higher education practice Senior vice president and Chicago have a massive wave of seasoned lead- property/casualty branch manager better job communicating that insurance Arthur J. Gallagher & Co. ers who are exiting the industry … and isn’t simply selling door-to-door — there BMS Group South Hadley, Massachusetts a lot of them are starting to think about are so many different facets. succession planning. The key is to keep Chicago Stacie Kroll joined Arthur J. Gallagher those young leaders engaged and get What’s one habit or hobby you in 2020 to head up the broker’s higher them up to speed on the technical and As the third generation of his family to adopted during the pandemic? education practice based at its Rolling institutional knowledge that these sea- work in the insurance industry, Bradley I would say I have expanded this hobby: Meadows, Illinois, headquarters after soned leaders have. Nebel knew what he wanted to do after coffee. We have a local roaster in town, spending eight years in risk management college and began his career as an under- and we now regularly have coffee shipped for Five Colleges Inc., a consortium of What is something about you that writing assistant at his father’s managing in — different roasts and beans from all Western Massachusetts colleges. The would surprise people? general agency. In 2020, he joined BMS over the world. It’s a nice little adventure Navy veteran remains deeply committed I’m a reality TV junkie. I love Bravo TV Group after four years at Aon PLC to having different types of coffee delivered to higher education and enjoys educating — “The Real Housewives,” “Vander- take on the challenge of running and to the house. her clients in her new position. pump Rules” — I can’t get enough of it. expanding its Chicago office. All-time favorite movie. What is your top tip for working remotely? All-time favorite movie? What’s your advice on navigating I’m definitely in the comedy sector. “The Time management. Through COVID It’s probably a tie between “Shawshank the current insurance market? Hangover” is one of those phenomenal we went from working from home to Redemption” and “Wedding Crashers,” Patience and creativity — it’s what the movies. And “Caddyshack.” living at work. It’s so easy to just work because “Shawshank Redemption” has market demands. nonstop and prioritize it over everything the best characters and story arc, and What is your favorite meal? else. Set those boundaries … say, “This “Wedding Crashers” is comedic gold. How will your work change going forward? Cheeseburgers, all day.

making sure we’re spending time work- I’m reading a lot of resources around the ing through issues and connecting on a technical side and staying current on what’s personal level. going on. We’re having a lot of conversa- tions with clients to get them to under- How will your work change stand, “These are the basic things you need going forward? to have in place” — really shining a light For most people virtual is going to be a on the inadequacies of cyber security. new component of how we work. Every- one is going to have to embrace some How will your work change going forward? elements of work from home. It will be It’s going to be more integrated — tech- interesting transitioning back into the nology and in-person experiences. The key office and making sure everyone has the is flexibility and being able to really make right balance. the experience personal for each client

ROB QUAST 34 What’s one habit or hobby you LACY REX 38 What should the industry do to attract Director of insurance and claims adopted during the pandemic? Vice president, cyber strategic leader more young people to work in it? The Kroger Co. It’s a hobby I had before — golf. It has Oswald Cos. We need to focus more on the niche cov- Cincinnati been one of the only ways I can continue Cincinnati erages. Like executive risk and how that to get physical activity. I have dramat- really would pair well with certain college Certified public accountant Rob Quast ically increased my volume of golf this Lacy Rex “fell into” the insurance degrees and finance. And cyber liabil- joined The Kroger Co. seven years ago, year — rounds were up, handicap was business after graduating with a history ity, if you have a technical background starting in the finance department before down. degree from Indiana University, when a or really just an interest. Focusing on moving into his current role. As the risk friend recommended her for a job in the areas that are not auto insurance, home management leader for the grocer, he has All-time favorite movie? industry. The research skills she learned insurance, and that perception of what worked to ensure the needs of its large “Wedding Crashers.” I like movies where in college have come in handy, though, insurance is. essential workforce are being met during I can totally zone out. I don’t want to be helping her get to the root of fact pat- the COVID-19 pandemic, including overly engaged; I just want to relax, laugh terns in challenging cyber situations. In What’s one habit or hobby that you rolling out more telemedicine offerings a little bit and chill out. her spare time, Ms. Rex likes to garden, adopted during the pandemic? and purchasing personal protective equip- knit and spend time outside with her two Meditation. Generally, when I’m feeling ment to keep employees safe and healthy. What is your favorite meal? German Shepherds and three-pawed like I need to be a little more centered, I guess I’m kind of traditional. I like just Havanese rescue dog. especially when things are chaotic, tak- What’s your top tip for a nice steak and a glass of red wine. I love ing a couple of minutes really helps with working remotely? going to a steakhouse or I don’t mind What’s your advice on navigating reflection. Meditation and jazz. Really trying to make things personal cooking up one at home. On a Sunday the current insurance market? again. Spending time with team mem- night, get the steak out, marinate it, get The cyber liability space is so dynamic. What is your favorite meal? bers, brokers, carrier partners — just a glass of wine — that’s my happy place. It’s honestly getting really, really difficult. Tacos and margaritas.

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cise. Working with different time zones companies that do more will put them- can be challenging, and it isn’t easy when selves in a position to get advantageous you’re tethered to the computer. rates across every line.

How will your work change How will your work change going forward? going forward? As organizations transform and their The global pandemic created a new bur- risks become more complex, the value den on the need for risk management we get from face-to-face interactions to be connected to the most up-to-date can’t be overstated. Even though we data in real time. That will continue well have great technologies, like Zoom and into the future, because the risks keep WebEx, which means we don’t have to growing, whether from environmental travel as much, there is significant value changes, regulatory changes, new digital SAM TASHIMA 33 from sitting down with an underwriter DAVID WALD 34 risks or social-related unrest. The risk or a client. manager’s job is expanding exponentially. Director and actuary CEO Aon PLC What should the industry do to attract Aclaimant Inc. What should the industry do to attract Bloomington, Minnesota more young people to work in it? Chicago more young people to work in it? From a diversity aspect, as well as attract- What isn’t advertised enough is the As the son of a math teacher, Sam ing people — I am Japanese-American As a venture capitalist with a technol- pace of change and innovation. All the Tashima always assumed he would have — I think one of the biggest things we ogy background, David Wald was less necessary components are already here; a similar career. As he prepared for col- can continue is participate in mentor- than enthusiastic when his girlfriend’s it’s about packaging and messaging and lege, however, a teacher suggested he ship and advisory programs at universi- father suggested collaborating on an finding the right way to engage a younger look into actuarial science. That led to ties, because some students may not have app for the insurance industry. Fast-for- audience today. an actuarial science major at the Univer- exposure to insurance. ward, he and his now father-in-law are sity of Minnesota and an internship at co-founders of Aclaimant, which offers What is something about you Liberty Mutual Insurance Co. In 2009, What is something about you a tool designed to house information and that would surprise people? he accepted a position at Aon and also that would surprise people? data and streamline processes for risk and I was a competitive chess player in mid- began working toward an MBA degree, I am a big Star Wars fan, and I play a safety managers. dle school and high school in national which he also completed at the Univer- card game called Star Wars CCG that competitions and had a couple of decent sity of Minnesota. ran from 1995 to 2001. After a 13-year What’s your advice on navigating finishes. hiatus, I got back into it. It’s a small, the current insurance market? What’s your top tip for great community. Businesses taking proactive steps to What is your favorite movie? working remotely? better themselves will outperform every “The Shawshank Redemption.” I have What’s been most useful is making sure I All-time favorite movie? time, and the insurance markets will good memories of watching it with my carve out time for lunch and some exer- “The Empire Strikes Back.” react. So even if the market is hardening, dad, growing up.

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time on Zoom calls. of declines and the prices are going up. So get more information and details on What’s your advice for navigating the what the insured actually wants — what current insurance market? their buttons are, essentially — and then Make sure you really focus on an insur- work with the market and get creative ance broker that understands your niche so you get a price that makes sense, but industry and understands the current you are still getting the coverage that the insurance climate, so they can properly insured is most concerned about. Don’t insure your risk with the right carriers have the same answer for every deal but providing adequate coverage and pric- personalize each deal for the insured and es. Interview a few different brokers and the market. select a broker that best meets your needs and has the expertise you’re looking for. What should the industry do to attract more young people to work in it? STEPHANIE BOZZUTO 38 WILL CEA 29 What should the industry do to attract Get college kids more exposure to the Cannabis insurance broker more young people to work in it? Senior vice president property/casualty side. When they think Bozzuto & Associates Insurance Services Inc., Our industry, compared to others, is very Brown & Riding Insurance Services Inc. of insurance, people think of a life insur- a unit of Acrisure LLC slow to adapt to new technology and Los Angeles ance salesperson, but when you really Campbell, California change. Not just technology, but culture look at the property/casualty insurance needs to change, and diversity needs to Will Cea joined Brown & Riding in business, it’s a very social setting. It can After working in marketing for a happen within this industry. Those fac- Los Angeles after graduating from The be a lucrative job if you want it and it wholesale insurance brokerage, Steph- tors will bring more younger people into Master’s University with a degree in can give you a lot of freedom, too — it anie Bozzuto in 2016 joined Bozzuto the industry. business, finance and management. Spe- doesn’t always have to be 9 to 5. & Associates, where she co-founded its cializing in property and inland marine, Cannabis Connect Insurance business. What is something about you he moved to the wholesaler’s Chicago What is something about you She works with insurers and managing that would surprise people? office in 2016 to broaden his experience that would surprise people? general agencies and has held commit- I ventured out of the insurance industry beyond the earthquake risks he handled I’m actually a pretty small guy — like tee and board seats with the Cannabis for a period of time and pursued cosme- in California. Back in Los Angeles since 5'8", 160 — but when I was born, I was Chamber of Commerce, National Can- tology. I was a hairdresser for a couple 2019, he is one of the youngest princi- the biggest baby in the hospital. nabis Industry Association and Califor- of years. pals at the brokerage and places business nia Cannabis Industry Association. nationwide. All-time favorite movie? What’s one habit or hobby you “Limitless.” What’s your top tip for adopted during the pandemic? What’s your advice on navigating working remotely? My husband and I bought a speed boat. the current insurance market? What is your favorite meal? Staying connected through social media. It became such a fun hobby for us that we Look for win-win deals. The property The Nozawa Trust Me at Sugarfish, a ... Also, I would say getting face-to-face go out boating every weekend. market is pretty hard, and you get a lot sushi restaurant.

night, but I’ve found it’s really critical get dressed, have a good breakfast, have for me to actually go for a walk or step your coffee and then get into a designat- outside, even if it’s just out your front ed workspace, so you can prioritize your door, just to distance yourself from your work and eliminate outside distractions. workspace. What’s your advice on navigating What’s your advice on navigating the current insurance market? the current insurance market? My advice for navigating the current insur- Don’t be afraid to try new things. It ance market would be to really focus on might take awhile to implement new and build relationships with your produc- technology, and you might not know that ers and allow that to grow your business. it could lead to improvements until you go through with it. There’s a lot of new How will your work change going forward? ASHLEY FONG 29 technology that we might be afraid to use SHANNON GUNDERSEN 32 Going forward, we will continue to have because the insurance industry is built on a collaborative and hybrid work envi- Director of technical operations Senior underwriter, GoQuote manager a lot of history but there are things that ronment, so we will remain having the Carpe Data could help that you might not see unless Atlas General Insurance Services LLC, flexibility of working from home, yet we a Risk Placement Services Inc. company Santa Barbara, California you take that leap. will also have a dedicated workspace that San Diego we can go into to interact with our peers. Ashley Fong was one of the first What’s one habit or hobby you employees of Carpe Data when she adopted during the pandemic? In her dual role of senior underwriter What should the industry do to attract joined the data provider as a quality I got really into the stock market. Like a and manager of GoQuote, Atlas’ online more young people to work in it? assurance engineer in 2016. She brought lot of people, I started trying to under- rating platform, Shannon Gundersen Focus on internships and nurture pro- with her a degree in studio arts but had stand stocks more and used the time to acts as a prime liaison between under- grams within the college community, as also studied computer coding while get more involved. I have made some writing and operations. She spearhead- well as mentorship programs for entry at the University of California, Santa profit, but I am not counting all of it yet; ed internal and external training and level positions. Barbara. In her current role she works we’ll see how the long holds go. development for GoQuote, which has with insurance industry clients on their become a dominant premium driver for What is something about you data needs. All-time favorite movie? Atlas’ workers compensation line. Ms. that would surprise people? “My Neighbor Totoro” — I have a lot of Gundersen holds a bachelor’s degree in That I started my career right after What’s your top tip for good childhood memories watching that, English/language arts teacher education graduation and have been at the same working remotely? and I love the story and the message. from Cal State Long Beach. company since. Make sure you actually step away from your home office or workstation. It’s What is your favorite meal? What’s your top tip for working remotely? All-time favorite movie? easy to roll out of bed and get to working A classic breakfast platter with bacon, It would be starting every day as if you “Sweet Home Alabama.” It’s a feel good, and then continue working through the eggs, toast, hash browns. were still going into the office. Get up, romantic comedy.

24 JUNE 2021 BUSINESS INSURANCE WEST

of the house and do something you enjoy. fan of using internal instant messaging systems. What should the industry do to attract more young people to work in it? How will your work change The industry needs to be more motivation- going forward? al and inspirational about what we can do I can see some meetings transitioning to for companies. It’s such amazing careers, Zoom, or some sort of online platform. with unlimited opportunities. I also think If COVID-19 were to occur again, we’ve we need to be more effective in our mes- got a good template moving forward on saging toward college-age students. how to navigate that, but I am certain- ly old school and prefer face to face, the What is something about you golden handshake. I’m a people person. that would surprise people? I love meeting people in person. JESSICA HANNEMAN 31 I grew up living a traditional Alaska BRETT RICHESIN 34 lifestyle, hunting and gathering almost What is something about you Senior vice president, director of business relations everything we ate, and I am also a former Assistant vice president, account executive that would surprise people? Marsh & McLennan Agency LLC Miss Alaska USA. Alliant Insurance Services Inc. You probably would be surprised that Anchorage, Alaska Fresno, California I like to go surfing and be in the ocean as What’s one habit or hobby you much as possible. Jessica Hanneman earned a bachelor’s adopted during the pandemic? Brett Richesin, who focuses on a wide degree in psychology with a minor in Yoga. Marsh McLennan Agency really spectrum of agricultural and food indus- What’s one habit or hobby you communications from the University of encouraged us to stay active during the try accounts, has been in the insurance adopted during the pandemic? Alaska Anchorage Honors College, where pandemic, so they hosted yoga classes twice business for 11 years. He grew up in the It’s strange to admit it, but disc golf. It’s she graduated magna cum laude. She a week. I actually participated in almost all industry, learning from his father, who like combining Frisbee with golf, essen- began her career at Marsh McLennan in of them, even when I was pregnant. owns a health insurance brokerage in tially, so you play 18 holes, but instead 2015 as a sales professional. After serving Fresno. He worked in health insurance of swinging clubs and using a golf ball, as vice president, director of business rela- All-time favorite movie? for two years after graduating from col- you’re throwing a specialized Frisbee. I tions, beginning in December 2019, she “The Notebook.” It’s a love story about lege, then switched to property/casualty. picked that up just because of the ability was named senior vice president, director people from different classes of society to be outside. It’s just a whole lot of fun. of business relations, in April of this year. that were forbidden to be together. In What’s your top tip for the end, they manage to make it work. working remotely? All-time favorite movie? What’s your top tip for working remotely? When you’re working remotely, com- I would put anything directed by Michael To always stay energized. At Marsh & What is your favorite meal? munication is absolutely key and doing Mann, and probably put “Heat” at the McLennan Agency we really encourage Pad kee mao. It’s a Thai dish. I spent a a better job of staying in touch not only top of the list. It’s hard to beat Al Pacino people to take a break during the day, month traveling through Thailand, and with your clients but with your colleagues and Robert De Niro going head-to-head maybe through lunch time, and to get out that’s my all-time favorite meal. and the marketplace. I have been a big in that movie.

before starting work and, after I finish give yourself a workplace setting. work, we do another walk, for another mile or two. It’s good exercise, and it How will your work change also ensures that the dog doesn’t drive me going forward? crazy all day long while I’m trying to work. Not too much. Even working from home I’d spend a few days in the office. I’d like How will your work change to get back to seeing clients — I haven’t going forward? seen a client in more than a year now. The pandemic was eye opening to a lot of That will be the real change, to see peo- people about what humans are capable of ple again. In this industry, even your and has probably challenged a lot of the competitors become your friends. There traditional thought of how work needs is not a lot of angst towards each other, to be done. But I think that after all this, so it’s nice. It’s like I’m missing seeing CONOR SWEENEY 34 people will come out a lot stronger than CHRIS THEVENY 36 some of my friends. they were before. Assistant vice president and commercial officer Regional underwriting director, What should the industry do to attract contract surety CNA Financial Corp. What’s one habit or hobby you more young people to work in it? Crum & Forster Holdings Corp. Denver adopted during the pandemic? If we can get more visibility in the I actually got married during the pan- Orange, California college setting and more information Conor Sweeney joined CNA’s trainee demic We had originally planned to about surety, you would see more program in 2011 in New York after have a wedding but had to cancel, so A job hire through Monster.com interest in the industry — particularly graduating from the University of Cal- instead we picked up the paperwork brought Chris Theveny into the insur- since the surety industry has a good ifornia at Santa Barbara with a degree from the county clerk’s office and signed ance industry and ultimately to Allied starting salary, but not a lot of people in economics. After completing the it ourselves. Colorado is really loose on World. There he entered the contract know that. Getting the word out is CNA program in 2012, he worked as a wedding requirements. You don’t even surety business, where he uses his important. front-line underwriter. In 2015, he was need a witness; you can actually marry analytical skills. In 2019, when Allied recruited to run technology underwriting yourselves. It wasn’t what we had imag- World exited the surety business, he What’s one habit or hobby you for the central United States, spanning ined, but it was perfect for 2020. joined sister company Crum & Forster, adopted during the pandemic? 11 states, and was promoted to his cur- where he runs the West Coast surety I do a lot of walking the dog. I’ve also rent position two years ago. All-time favorite movie? business. gotten more organized and better at The original “Star Wars.” I watched it making to-do lists and prioritizing. What’s your top tip for thousands of times as a kid. What’s your top tip for working remotely? working remotely? What is your favorite meal? My top tip is to establish some sort of a What is your favorite meal? Limit distractions. When I first worked Any type of sushi. My dad was a chef. He routine. My wife and I start every morn- There are few foods that I don’t like, but at home I’d have the TV on, and I’d end introduced me to sushi when I was 9 and ing with walking our dog up to two miles I really like good sushi. up watching it instead of working. Try to I’ve loved it ever since.

BUSINESS INSURANCE JUNE 2021 25 WEST

them to meet for 15 minutes virtually. level of office attire.

What’s your advice on navigating How will your work change going forward? the current insurance market? A silver lining of the last year’s events was We understand that ransomware attacks that it was a shared experience, and with are on the rise, and more risks are coming so many people working from home we in that have a claims history. We are tak- were able to get a rare glimpse into per- ing a deeper look to see if the company has sonal lives, like pets and kids popping into recovered and put in the correct controls, video calls, which was a reminder that we to get comfortable with that risk. Now is are all human and coping together. a good time for companies to look at their Technology allowed us to have that risks and their cybersecurity safeguards. closeness. Going forward, we’ll go back to some of the traditional ways of con- What should the industry do to attract CAROLINE THOMPSON 34 AMY TORRES 35 necting, however, it’s good to remain more young people to work in it? flexible and continue utilizing all Cowbell Cyber Inc. Young people are interested in creating Assistant vice president resources available to accommodate the Head of underwriting efficiency and being more innovative in CFC Underwriting Ltd. changing needs, and that includes a high Los Angeles the approach to risk. More integration of San Francisco use of technology. The new challenge technology will help to attract young peo- will be how do we keep that fresh and With her father being a reinsurance bro- ple into insurance. We’re getting there. After eventually deciding against her meaningful. ker, entering the insurance industry was a original career choice of the law, Amy natural for Caroline Thompson. The sub- What is something about you Torres needed a job quickly and start- What is something about you ject of her senior thesis at Providence Col- that would surprise people? ed out in the insurance business as a that would surprise people? lege was micro insurance, and her intern- I used to be a synchronized swimmer and receptionist. Twelve years later, she I used to run to work when I lived in San ships included time at Lloyd’s of London. I competed nationally. It was hard work has worked in operations and as a retail Francisco, and it was very hilly, so people She started her insurance career at Beazley but a great experience. broker, wholesaler and underwriter on would be surprised that I’d just run there. PLC, where she developed an interest in coverages ranging from workers compen- I’ve completed three marathons to date. cyber underwriting. In 2019, she joined What’s one habit or hobby you sation to professional liability. Currently, Cowbell, where she recently wrote a poli- adopted during the pandemic? she specializes in cyber insurance. All-time favorite movie? cy form for a new product launch. Long walks. I hadn’t really explored my “The Wedding Singer” — I love a good neighborhood by foot, so I started doing What’s your top tip for working remotely? rom-com, and I also love the ‘80s music. What’s your top tip for working remotely? long walks with some friends in the Establish a routine and whatever that Reach out to employees you don’t normal- neighborhood, and I ended up finding routine might look like, it should not What is your favorite meal? ly interact with. We put together a pro- all these beautiful staircases in the area. include working in PJs. Getting dressed Dim sum. The variety makes it fun, it’s gram where we match up people in differ- I also picked up tennis — a safe, low- is crucial to getting yourself in the mind really delicious, and it reminds me of my ent departments each week and encourage contact activity. set to start the day, even if it’s not to the childhood.

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PANDEMIC RISK MANAGEMENT

Event cancellation coverage sees shakeup

BY JUDY GREENWALD [email protected] INSIDE he event cancellation insurance sector was hit hard by the pandemic, with billions of dollars in reported claims, and insurers have responded with dramatically higher rates and tighter capacity. GAP IN THE MARKET High-profile sports tournaments, such as the Wimbledon tennis Some insurers see new opportunities in the T championship and the NCAA basketball tournament, bought hundreds contingency market while others depart. PAGE 28 of millions of dollars in coverage limits prior to the pandemic. Since the losses poured in, several insur- theatre performances, conferences, festi- RESTAURANT MAKEOVERS ers have left the market, but others have vals and major sporting events. emerged to take their place, and more Prior to the pandemic, the biggest losses The pandemic has ushered in new ways of doing capacity may be added (see story page 28). to hit the market were weather-related business, shifting risk profiles. PAGE 29 Event cancellation insurance compen- (see chart page 28). sates organizers and others for expenses Pre-pandemic policies often included BUSINESS INTERRUPTION and lost revenue related to the cancella- communicable disease exclusions but also U.K. test case could have wide influence on tion or postponement of an event. The offered a “buy-back” option under which coverage disputes. PAGE 30 insurance, which can be standalone or policyholders paid an extra amount to part of a broader package, covers indoor and outdoor events, including concerts, See EVENTS page 28

BUSINESS INSURANCE JUNE 2021 27 SPECIAL REPORT EVENTS Continued from page 27 remove the exclusions from their policies. Such buyback options are not expected to be offered for the foreseeable future. Experts estimate COVID-19-related losses were in the $6 billion to $9 billion range, although there is not yet a final tally because some companies have ongo- ing multiyear policies. The pandemic has “been the single big- gest loss ever experienced in the history of contingency underwriting,” said Greg Stevning, Indianapolis-based vice presi- dent in Marsh LLC’s U.S. entertainment and media industry practice. Major markets, including Chubb Ltd., London, have entered the market. These Rates have increased as much as four The pandemic has “been the single Swiss Re Ltd., W.R. Berkley Corp., include Convex Group Ltd.; Apollo Syn- times from what they were prior to the Munich Re, Markel Corp. and Ameri- dicate Management Ltd.; Arch Syndi- pandemic, although most rates are dou- biggest loss ever experienced in the can International Group Inc. unit Tal- cate, part of Arch Capital Group Ltd.; bling or tripling, said Lou Novick, Wash- bot Underwriting Ltd. have withdrawn, Fidelis Insurance Holdings Ltd.; Cincin- ington-based national director-associa- history of contingency underwriting.” observers say. A Berkley spokeswoman nati Global, a unit of Cincinnati Finan- tions in the nonprofit practice at Arthur Greg Stevning, said in an email it has not yet fully left cial Corp.; and International General J. Gallagher & Co. Marsh LLC the market. Insurance Co. Ltd., brokers say. John Beam, Charlotte, North Caroli- But several insurers, particularly in “This is an opportunity,” said Francis na-based sports entertainment practice Hernandez, head of contingency for Cin- leader for Willis Towers Watson PLC, cinnati Global, who joined the operation estimates capacity has been reduced from COVID-19 exposure in The Nether- with others from Chubb last year. “We $750 million to $1 billion per risk to $300 lands, while Germany is moving in that are seeing rate increases, which is great,” million to $400 million. direction, and there has been a call for a and narrowing of terms and conditions “We’ve seen a much more conservative similar approach in the United Kingdom. and reduced systemic exposures, he said. underwriting posture, a narrowing of Switzerland also is planning such a fund, The new entrants “have a little more the coverages,” as well as a reduction in according to reports. CANCEL COVER flexibility” than other insurers, enabling capacity, said Roger Sandau, Austin, Tex- There is demand for cancellation cov- Cancellation insurance can cover them to offer better terms and conditions, as-based managing principal with EPIC erage in catastrophe-prone areas, includ- events canceled due to: and maybe better rates, said Leigh Ann Insurance Brokers and Consultants. ing California, Texas, Florida and in Las ✖ Weather Rossi, chief operating officer, sports and Insurers have excluded global catastroph- Vegas, Mr. Stevning said. Policyholders entertainment group, for NFP Corp. in ic events from the coverage and inserted are planning large events for 2021 and ✖ Terrorism Plainview, New York. very broad cyber exclusions, he said. 2022 although some smaller events may ✖ Natural catastrophes, Robbie Thompson, executive director of Event organizers can still buy cancella- not be held, he said. including fire, tornadoes, the Minneapolis-based Professional Lia- tion insurance, “you just cannot include “We see the outdoor musical festi- hurricanes and earthquakes bility Underwriting Society, which runs communicable disease coverage with your val business coming back gradually,” ✖ Power outages about 75 conferences annually, said, “We policy,” said Nathan Nicholas, president although perhaps more likely with fes- ✖ Labor strikes will see our terms and conditions change and CEO of Nicholas Hill Group Inc., a tivals having 5,000 to 10,000 attendees ✖ Civil commotion and make it more difficult, or potential- Colorado Springs, Colorado-based bro- rather than 30,000 to 40,000, he said. ✖ National mourning periods ly impossible, to get event cancellation kerage, whose clients include Wichita, Organizations seeking cancellation ✖ Nonappearance of key speakers, coverage of pandemic-related events, and Kansas-based Running USA, a running insurance should start looking for cov- performers or athletes anticipate our costs will go up.” industry organization. erage early, experts recommend. “I The organization, which has been Alistair MacLean, London-based glob- would strongly suggest” policyholders ✖ Nonavailability of a site insured with Lloyd’s of London syndi- al product leader, live entertainment, for start talking to their brokers as soon as ✖ Lower number of cates, has not had any claims because of Allianz Global Corporate & Special- possible, said Andy Thompson, Lon- expected attendees arrangements it made with its conference ty, an Allianz SE unit, said a govern- don-based senior vice president with Source: Business Insurance interviews hotels, he said. ment-backed entity has been created for Lockton Cos. LLC. Some insurers see opportunity in tight cancellation market hile some big names have exited the circling the area but have yet to put their said, however, “If more markets were to enter, more … but I do think the market will make event cancellation insurance market capacity down in this space,” said James I think we would have seen them by now.” its way back there.” W since the onset of the COVID-19 Davies, divisional director at London-based John Beam, Charlotte, North Carolina- Jason Sampson, London-based contingency pandemic, more insurers are expected to EC3 Brokers. based sports entertainment practice leader underwriter at Beazley PLC, said in an email enter the sector, some experts say. Some will likely enter the market in the for Willis Towers Watson PLC, said, “The that, while the losses’ full impact remains “You’ll see some around the fringes,” said next six months, and while some will commit market’s healthy and it will continue to to be seen, the outlook is positive. “While Francis Hernandez, London-based head of for the long term, others will be “more evolve in a positive manner,” assuming some uncertainty remains as to when we will contingency for Cincinnati Global, a unit of opportunistic,” he said. something else disruptive does not occur return to ‘business as usual,’ we are already the Cincinnati Insurance Cos., which is one Alistair MacLean, London-based global over the next couple of years. seeing an uptick in demand for contingency of the new entrants into the market. product leader, live entertainment, for Allianz “We’re still only a year away from (the coverage,” he said. “There are others who are definitely Global Corporate Specialty, an Allianz SE unit, pandemic). It’s going to take a year or two Judy Greenwald

28 JUNE 2021 BUSINESS INSURANCE Policy revamps, coverage reviews required as pandemic serves up new restaurant risks Reuters BY CLAIRE WILKINSON services, even taking COVID-19 out of [email protected] the equation, rates have increased any- where from 20% to 50%, said Josh Miller, urbside pickup, delivery, outdoor din- vice president, account executive-food and ing and online ordering have reshaped beverage practice, at Lockton Cos. Inc. in C restaurant spaces and generated new Kansas City, Missouri. “It could poten- revenue streams during the pandemic, tially go higher if they shift to first-party making it vital that risk managers stay delivery,” he said. engaged with insurers and review their As for alcohol, many state governors coverage as renewals approach. signed executive orders temporarily allow- Risk transfer needs may have shifted ing bars and restaurants to offer alcohol during the pandemic and, in a hard mar- take-out or delivery orders during the pan- ket, policy terms and conditions have demic, and a growing number of states, tightened, triggering potential coverage including Florida and Texas, have enacted gaps for restaurants. laws making the changes permanent. Especially coming into the first insurance Alcohol-to-go is a viable way for restau- renewal from the pandemic, discussions rants to bring in a new revenue stream, with underwriters are critical to commu- but protocols need to be in place, Mr. nicate any business changes and the risk Miller said. management improvements that restau- TOTAL SPENT AT U.S. online ordering, she said. Each state has its own statutory require- rants have made, said Jonathan Price, RESTAURANTS IN 2020 Risk managers in the restaurant sector ments regarding whether a restaurant can senior director, risk and insurance, at Main U.S. customers spent $434 billion on online food need to get clarity on the new bacteria offer alcohol-to-go and practices around Event Entertainment Inc., based in Dallas. orders in 2020 and some $264 billion (61%) of exclusions that insurers are trying to add “what you can sell, who can purchase it, “We have all changed through this past that was at restaurants that had offered only to policies, Mr. Price said. “We always and how it needs to be sealed,” he said. sit-down dining prior to the pandemic. year,” whether it’s a shift to work-from- had the typical foodborne illness, salmo- Restaurants need to check on the avail- Phone In store Online home employees, supplying personal pro- $900B nella, E. coli coverage. Now you’re seeing ability of liquor liability coverage, said tective equipment in the workplace, or cre- $769.5B insurers introduce blanket bacteria exclu- Seth Johnson, Clearwater, Florida-based ating a socially distanced restaurant space, $800B sions,” he said. president, RT Binding Authority, a part $51.8B said Mr. Price, who is also the immediate $700B “It’s important that risk managers get of RT Specialty LLC, a division of Ryan past president of the Risk & Insurance the carvebacks … and understand how an Specialty Group. $600B Management Society Inc.’s Dallas-Fort $283.3B exclusion could potentially impact tradi- “Even pre-pandemic, this was a very Worth chapter. $500B tional coverage that they thought they had difficult line of coverage,” depending on “The carriers need to understand $400B last year,” Mr. Price said. the state in which a restaurant operates, improvements we’ve made as a restaurant While curbside pickup in general is not he said. $300B as well as the changing landscape of restau- viewed by underwriters as high hazard, if Dram shop laws in many states hold rants that may (now) offer alcohol, or food $200B $434.4B Amount spent online restaurants use their own employees for businesses, including bars and restaurants, where only sit-down delivery, or even have added first-party $100B $263.7B dining was offered delivery, that is “quite a wrinkle,” said Ron liable for serving or selling alcohol to indi- food delivery that they didn’t do histori- prior to the pandemic Levitt, president, Chicago, and a casualty viduals who later cause death or injury to cally,” he said. Source: PYMNTS.com broker at CRC Group LLC. another person or property damage. Kristi Whistle, Louisville, Kentucky- “In general, food delivery is not the most Some states, such as Virginia and Mary- based managing director and leader of she said. In the case of third-party delivery, savory class of business in the industry,” land, are lenient from a dram shop perspec- Marsh LLC’s Restaurant Center of they should be “reviewing those contracts Mr. Levitt said. Certain insurers specialize tive, but others are strict, Mr. Johnson said. Excellence, said changes that restaurants … ensuring that the indemnification lan- in it and underwrite it thoroughly to make If a restaurant has a $2 million general implemented to be successful, such as guage is adequate,” Ms. Whistle said. sure safety procedures are in place, he said. liability policy, it might only be able to buy technology upgrades for online ordering Alcohol-to-go is a new exposure and a By outsourcing delivery to third parties a liquor sublimit of $100,000 or $200,000, and delivery of food and alcohol, changed substantial enough change that restaurants such as DoorDash and Grub Hub, restau- for example. Getting full liquor liability their exposures. need to notify and have discussions with rants can mitigate the risk and the cost of coverage in more restrictive states can be Restaurants that have entered the delivery their insurers, Ms. Whistle said. There liability coverage, he said. “difficult and potentially expensive,” Mr. space need to understand the ramifications, could also be some cyber risk at play with For restaurants that offer food delivery Johnson said.

CLAIMS INCREASE EXPECTED AS WORKERS ADAPT TO REIMAGINED DINING SPACES taff shortages in the restaurant based in Southfield, Michigan. While many restaurants added staff at AmTrust Financial Services Inc. sector could result in an uptick in Multiple drive-thru lanes, controlling to enhance cleaning and sanitation “Now as we get to the back end of S claims going forward as reimagined traffic and keeping employees safe in line with Centers for Disease and the pandemic, we’re seeing a separate restaurant footprints bring new in hot and cold weather all had to Control and Prevention guidelines, the set of issues as restaurants deal with hazards and the need for additional be worked through, she said. shift to takeout and the introduction of staff shortages,” Mr. Zender said. risk mitigation strategies, experts say. “Normally, the standard restaurant shortened menus led many restaurants to Restaurants have to determine As restaurants moved their services injuries we see are slips, falls, cuts, reduce their staff to the bare minimum. whether they can operate with the same outside, it drastically changed how burns. … Now the hazards are out This meant that many senior number of shifts as when they were certain tasks, such as order taking, in the parking lot, like being struck employees changed to roles that fully staffed or whether they are a five- were done, said Cindy Smail, a senior by a car, trips and falls but over a were unfamiliar to them, said Matt day-a-week operation as opposed to a vice president in the consulting curb as opposed to on the wet floor Zender, Las Vegas-based senior vice seven-day-a-week operation, he said. solutions group of Marsh Advisory, of a restaurant,” Ms. Smail said. president, workers’ comp strategy, Claire Wilkinson

BUSINESS INSURANCE JUNE 2021 29 PERSPECTIVES Business interruption case provides clarity

he United Kingdom’s regulator for directly to specific extension clauses. other issues would have impacted the busi- insurance and financial services — ness in any event. Expected revenue would, the Financial Conduct Authority Orient-Express Hotels case and therefore, be the same as actual revenue; in — last year brought a test case on the complexity of the trends clause other words, there would be no loss. T behalf of commercial policyhold- The decision in the FCA case overruled ers against various insurers regarding a precedent set by the 2010 Orient-Express Impact on UK policyholders COVID-19 claims under property damage Hotels Limited v. Assicurazioni Generali business interruption policies. The FCA Spa case, despite some of the judges being For many businesses, their policies case, which found mainly for the policy- common to both cases. In Orient-Express, didn’t have an exclusion for pandemic holders, has implications and consequenc- there was damage to a hotel in New Orle- risks, in which case insurers would be lia- es for the global insurance industry. ans following hurricanes Rita and Katrina ble, even if the intention was only to cover The FCA case, which went straight to in 2005. The disputed business interrup- business interruption losses that related the U.K.’s highest court, provides some tion loss is calculated by comparing expect- to physical damage. Clarity of cover was clarity concerning coverage, and this clarity ed revenue with actual revenue. Expected achieved for those with infectious dis- will be reflected in insurance policies in revenue should reflect trends in the busi- ease extension clauses, or hybrid exten- the future. This will help policyholders to ness in a ‘but for’ scenario — the FCA case sions. For those that don’t have policies make informed decisions about coverage referred to this as the “counterfactual.” matching the test case disputes continue. for infectious disease risks; although it now The Orient-Express decision stated that The FCA continues to apply pressure on appears that decision may actually be out expected revenue should be ‘but for the insurers; it continues to publish data on of their hands. damage’ using a strict interpretation of the number of claims that remain unre- Many insurance leaders have argued the wording (instead of ‘but for’ the hur- solved for each insurer. that systemic risks, such as global pan- ricane). With minimal damage, this left It is worth also noting that this is just demics, may be more appropriate for gov- the claim much lower. It assumed that the the beginning of the claims process. We ernments to take rather than insurers. If hotel and its expected revenue would have are now in the “quantification machinery” such coverage were to be provided by the been impacted by the hurricane in any phase where it is the forensic accountants insurance industry, pricing would become event, whether the hotel was damaged who step in to establish the expected rev- an issue. Insurers are being honest about or not. The trend therefore reflected the enue for these businesses, and quantify decisions to exclude pandemic coverage devastation already created by the hur- the losses. from future policies, for many, that was ricane, and expected revenue was much always the intention anyway. Even spe- lower as a result. Implications for US disputes Caroline Woolley, is a director cialist non-damage business interruption The FCA case found that expected and practice leader, investigative policies exclude pandemic. revenue should, in fact, be “but for” the In the United states, policies may include insured peril (not the damage). Orient-Ex- a communicable disease endorsement that accounting group, at forensic Business interruption is complex press losses should have been much higher; carries a sublimit significantly less than accountants Meaden & Moore expected revenue should have been ‘but the actual loss sustained. By and large, in London. Meaden & Moore The U.K. FCA case was groundbreak- for’ the hurricane. In the FCA case, it was U.S. litigation has been on a case-by-case ing — some say radical — but it could not “but for” the disease, therefore stripping basis, with most courts ruling in favor of work on behalf of insurers in cover all bases. According to the FCA, out the impact of the pandemic and the insurers. Some plaintiffs have sought to the quantification of claims, there were more than 60 insurers involved, lockdowns from expected revenue. This centralize the resolution of business inter- but also work as a single expert. with 700 different types of policies, and massively increases the calculation of loss. ruption cases in multi-district litigation over 370,000 policyholders were affected. A decision that now provides clarity for procedures; however, the MDL panels She can be reached at It has, therefore, been of incredible signif- all involved. have largely rejected plaintiffs’ attempts to [email protected]. icance. There were 21 policies chosen to be consolidate such cases, finding that there representative for the actual case. The pro- Pre-trigger losses was no commonality between the various Michael Vannucci is a partner, cess was expedited and significant savings If the impact of the insured peril is appar- defendants and that the cases involved investigative accounting group, in time and money were achieved. ent in the performance of the business different insurance policies with varying The main coverage extension clauses before the policy is triggered, that trend coverage provisions and exclusions. in the firm’s Los Angeles office. reviewed by the court were: should not be included in the calculation of Even though the FCA case concerns n He can be reached at Infectious disease. expected revenue in the counterfactual. A U.K. law, the world has taken note and n Denial of access (by order of civil logical decision, as the aim of the insurance similar principles are being considered [email protected]. authority). is to put the insured back in the position elsewhere, including the U.S. The Ori- n Combined (or hybrid) whereby cover is they would have been before the loss. ent-Express case involved a U.K. compa- provided for denial of access (by order Some insurers were found to have robust ny and U.K. law but a U.S. site, so it has between wordings for reinsurance purpos- of civil authority) as a result of infec- exclusions, so no coverage was granted. always been of interest, and its dismissal is es, as there can be different wordings and tious disease. Pure denial of access with no mention of important for insurers globally. different exclusions. There were some key findings that have disease, might be covered depending on Other issues continue to arise. For Many questions remain, the big one far-reaching implications for future insur- the category of business, but even if cov- example, we have seen examples where being: “Does the impact of coronavirus ance cover and claims around the world, ered, the losses would be minimal. The there is a lack of consistency in word- constitute physical damage?” The answer, including: case referred to “what was covered but not ing between insurers on the same risk, so far, is “no” in most places around the causative vs. what was causative but not which resulted in only a portion of the world, where courts accept that proper- Extension vs. exclusion covered.” In essence, the insured peril — claim being paid, as some insurers had an ty damage policies remain ring fenced Extensions expressly provided now take denial of access to premises — was not exclusion in place and some did not. A for property damage and tangible perils. precedence over general exclusions. In the the cause of the loss. Any calculation of situation which may seem bizarre to any- Some U.S. courts have ruled that coverage future, insurers will need to make intention expected revenue in the counterfactual one outside of the industry. Also, we have might be available, but the cases are com- absolutely clear and link those exclusions would be “but for” the insured peril; all the seen disputes related to inconsistencies plex. Business interruption is never simple.

30 JUNE 2021 BUSINESS INSURANCE SPECIAL REPORT

WORKERS COMPENSATION

Mental health front and center in comp claims

BY LOUISE ESOLA [email protected] INSIDE ental health treatment, once avoided in workers compensation claims that did not involve a compensable psychological injury, is now on the table in the claims management arena as employers and insurers increasingly NAVIGATING PSYCH CLAIMS M accept that many physical injuries often include a mental component. Mental claims can be complex, but early intervention Failure to address mental health issues Stunted recoveries and often unnec- may improve chance of positive outcomes. PAGE 32 can prolong a claim, leading to more time essary treatment also add to costs, Mr. off work and higher costs, experts say. Lupinsky said. WORKER STATUS IN FOCUS “The question is always, ‘Why should “We are paying for it in (pain manage- we pay for this?’ Well, we are already pay- ment) injections and surgeries,” he said. Legal cases revisit whether benefits apply ing for this,” said David Lupinsky, Sac- “I say, ‘Get to the core of the issue and to temporary workers or contractors. PAGE 33 ramento, California-based vice president pay for that.’” of digital health and innovation for Cor- The injured worker in the example was REBUTTING COVID-19 PRESUMPTION Vel Corp. For example, he encountered “catastrophizing” — thinking that the Employers need to create policies and a claim in which a worker with a minor worst had happened and that he would document compliance. PAGE 34 but painful musculoskeletal injury, one only get worse, which is a belief that month into treatment, began to say he would never return to work. See MENTAL HEALTH page 32

BUSINESS INSURANCE JUNE 2021 31 SPECIAL REPORT

senior vice president of case management Once a mental problem is identified, the MENTAL HEALTH and clinically integrated programs at Sedg- first approach can be for claims handlers wick Claims Management Services Inc. — and front-line providers — to talk to Continued from page 31 “Just because there is anxiety and depres- the injured worker about the psychosocial sion ... we emphasize it does not have to be barriers. spells problems for physical recovery, Mr. a psych claim.” “An individual needs to understand that Lupinsky said. Dr. Marcos Inglesias, Hartford, Con- a lot of these (mental) reactions, being WORK INJURY & DEPRESSION: Claims professionals are starting to necticut-based vice president and chief depressed or stressed or anxious, are normal A CORRELATION realize that they must consider an injured medical director of Travelers Insurance and that’s where case managers can come A study of 332 injured workers in 2016 by worker’s psychological hurdles, said Cos., said the biopsychosocial model leans into play,” Ms. Blue said. “Oftentimes, the Institute for Work & Health in Toronto Mariellen Blue, Wayne, Pennsylvania- on “yellow flags,” indicators that a claim being able to talk about it can go a long found that depression was a common based national director of case manage- warrants some intervention beyond man- way in it not becoming a long-term issue.” symptom following a work injury. ment services at Genex | Coventry, part of agement of the physical injury. Solutions aren’t complex — goal setting, n Half of the workers surveyed said they Mitchell International Inc. The mental component for insurers is life coaching and even a focus on sleep frequently felt symptoms of depression at “One of the things that is important “not their problem, but if you want to help management can help, Dr. Inglesias said. some point in the 12 months following the injury. Almost one in 10 were diagnosed by a to remember is physical injuries do have the injured employee and you want to help For workers who may need something physician with depression during this period. psychological types of impact,” she said. the claim along, it might make sense to more, cognitive behavioral therapy, or talk “Regardless of what is the cause of your help the individual in the problems they therapy that aims to change a person’s way n 10% of workers worsened in terms of their depressive symptoms over the 12-month injury … that physical injury would pre- are having,” he said. of thinking about their injury or pain, is period and about 25% of participants saw cipitate psychosocial responses. If the Acceptance of mental components in fast becoming part of claims management improvement in their depressive symptoms. claims person is not looking beyond the comp claims is changing because insurers, solutions. At the 12-month mark, 75% reported not (physical) this will undoubtedly increase using data analytics and injured worker Mr. Lupinsky said such therapy sessions feeling depressed. the duration of the injury and result in questionnaires, can more quickly iden- can take place once a week for 12 to 15 n Not feeling depressed one month after a long-term issues.” tify such issues. “They know there is a visits and can provide injured workers with work injury seemed to be a good indication Other mental health issues that can com- belief system you need to impact instead “tools to reframe” their thinking. “It can that an injured worker would remain feeling that way over the course of the next plicate a claim include perceived injustice, of something just physiological” to bet- be really incredible to see what they can 12 months. About 60% of all participants when a worker feels his or her employer ter manage and eventually close the claim, turn around in that short period of time,” did not feel depressed one month following has wronged them; kinesiophobia, the fear Mr. Lupinsky said. he said. their work injury. of movement; depression; and anxiety. Referrals represent another avenue for While data on the success of such tech- Such terms are part of the comp industry’s identifying potentially problematic claims, niques is hard to find, the industry is flood- emerging lexicon of the “biopsychosocial and providers are becoming better attuned ed with anecdotes on the effectiveness of weight with the help of therapy, thereby model,” referring to mental elements that to a person’s mental roadblocks that may cognitive behavioral therapy. avoiding surgery and enabling the closing can weigh heavily on the trajectory of a be affecting recovery, according to experts. Stacey Caldwell, a Ridgefield, Washing- of his claim, she said. claim despite not being part of a compen- Michelle Despres, vice president of phys- ton-based corporate claims manager for Another success story concerned a sable, physical injury. ical therapy and national clinical leader at workers compensation services provider 50-year-old warehouse worker who fell Traditionally, the industry avoided psy- Jacksonville, Florida-based One Call Care Barrett Business Services Inc., presented backwards after tripping on a pallet, injur- chological claims components based on the Management Inc., said she noticed the several examples during a session at the ing her arm, wrist and shoulder in an over- understanding that addressing them would mental issues prevalent with physical inju- Risk & Insurance Management Society all soft-tissue claim, which are typically translate into a “psych claim,” which could ries while working with physical therapy Inc.’s 2021 virtual conference in April. problematic in workers comp, Ms. Cald- come with added costs and time off work, patients several years ago. Among those who benefited from cog- well said. “We had really gone down the and fall under the realm of compensable “Before I ever heard the term biopsy- nitive behavioral therapy was a 62-year- rabbit hole,” she said, recalling the woman mental injury, which comes with its own chosocial, I realized injured workers often old truck driver who slipped and fell while saying, “I will never be able to work again.” complications (see related story). came in with fears,” she said, recalling getting fuel. The man injured his back in With cognitive behavioral therapy the “We often talk about mental health treating a veteran truck driver with an the incident, aggravating a previous back worker learned “how to reduce her stress and how certainly an injury can put an elbow injury who worried he would never injury, and was later told seven years into and not internalize negative comments and injured employee in a space of uncertain- again be able to provide for his family, conservative treatment that surgery may be thinking,” Ms. Caldwell said. It helped ty, discomfort, which ultimately leads to including two daughters in college. “I the only cure for his chronic pain. close the woman’s claim within months mental health manifestation,” said Beth remember thinking, this is a much bigger Flagged for biopsychosocial intervention, when the early prognosis was an expensive Burry-Jackson, Richmond, Virginia-based problem than the man’s tendon.” the man eventually got healthier and lost four- to five-year claim, she said.

EARLY INTERVENTION AND TREATMENT BEST PRACTICE FOR PSYCH CLAIMS ore than a dozen states have to post-traumatic stress disorder. there is a clear incident that led to said, adding that the distinction can laws that make mental injuries The industry is becoming more proactive mental injury — has emerged as a best help with recovery and return to work. M compensable under certain in managing such claims although practice, Ms. Burry-Jackson said. “It’s not a given that every time someone conditions, and the workers compensation challenges exist, according to experts. “We know if we manage these has PTSD that this will affect them the industry is responding with early “For other (physical) injuries you have proactively, (where) we can get better rest of their life,” said Mariellen Blue, intervention and treatment. guidelines, check in the boxes, best and more focused treatment on the Wayne, Pennsylvania-based national Mental claims are “not one-size-fits-all practices,” said Beth Burry-Jackson, compensable condition, we can make this director of case management services … but overall early intervention is always Richmond, Virginia-based senior vice person as whole as possible,” she said. “We at Genex | Coventry, part of Mitchell going to be best,” said Mark Debus, president of case management and do that with physical injuries, and we want International Inc. “The better the Chicago-based behavioral health team clinically integrated programs for to do that with mental injuries, as well.” treatment from the point of injury the lead at Sedgwick Claims Management Sedgwick. With mental health issues Using specialty providers also helps, better the chance of a positive outcome.” Services Inc. the treatment protocols are much said Tammy Bradly, Birmingham, Some claims may stay open for From a store clerk who is robbed to less clear, and the success of mental Alabama-based vice president of clinical maintenance, similar to physical injury a police officer who witnesses a mass treatment is not universal, which adds product development for Coventry claims, and may require periodic follow- shooting, the examples of events that uncertainty and complexity to treating Workers Comp. “You want someone who up visits, Ms. Bradly said. “That happens; can lead to comp claims run the gamut, psych claims, she said. specializes in PTSD. … And you want there is no clear cut-and-dry sometimes,” as do the mental injuries: from anxiety Yet getting workers help immediately, to make sure that there’s experience in she said. and depression about return to work rather than waiting — especially when working with injured employees,” she Louise Esola

32 JUNE 2021 BUSINESS INSURANCE No easy answer to worker status questions

BY SHERRI OKAMOTO inspect, maintain, and/or monitor each and every such machine at each and every recurring theme at state Supreme client employer’s work site, Kentucky law Courts in recent months has been puts the onus on the host employer.” A perhaps the most fundamental issue On April 8, the Missouri Supreme of workers compensation — coverage. Court ruled that an unbroken chain of Courts in Texas, Kentucky, Montana contractor-subcontractor relationships and Missouri addressed the applicability between an injured truck driver and the of workers compensation laws to employer of an alleged tortfeasor created employees with dual employers and in a statutory employer relationship. industries that have been exempted from Under Missouri law, an independent the workers compensation system, with contractor is deemed to be the employer mixed results. of the employees of his subcontractors and On April 30, the Texas Supreme Court their subcontractors when employed on ruled that a worker hired by a staffing or about the premises where the principal agency and assigned to a client qualified as contractor is doing work, the court said in an employee of the client company under State ex rel. Beutler Inc. v. Midkiff. the state Workers’ Compensation Act. This principle operated to bar Joshua In Waste Management of Texas v. McArthur’s negligence suit against the Stevenson, a majority of the court said that George J. Shaw Construction Co., the the test to determine whether a worker court said, since Mr. McArthur’s actual is an employee of a borrowing employer employer was the subcontractor of a centers around the issue of control over subcontractor for Shaw. the worker. Abigail Han, who represented Mr. “Rather than focus on the legal question Boyd contended the contract ought to provide a safe workplace to Mr. Maysey McArthur, said she expected the decision of who had the contractual right to control control unless the evidence establishes by placing the teenager at a worksite with would have “not much of an impact” as the plaintiff’s work, we looked instead to that “the true operating agreement was “multiple obvious hazards” and by failing it merely restated the existing law on the factual question of who exercised the one which vested the right of control in to make a good faith effort to provide Mr. borrowed employees. She said she had right to control as a practical matter in the alleged (employer).” Maysey a place of employment free from hoped the court would have used the case the course of the parties’ daily work,” the On March 30, the Kentucky Supreme hazards likely to cause death or serious as an opportunity to clarify some points court said. Court also addressed the protections physical harm. about the law. Jeffrey Belfort, who co-represented available to a temporary worker – and it Mr. Davis advocated for a reexamination On March 25, the Montana Supreme the worker, Robert Stevenson, said his reluctantly ruled that a statutory safety of the existing Kentucky law that allows Court ruled that the federal Employers argument had centered on the appropriate violation benefit enhancement was a borrowing employer to “escape liability Liability Act does not preempt an injured standard for a grant of summary unavailable to such a worker. for any penalty no matter how egregious railroad worker’s state law bad-faith claim. judgment as opposed to the standard for Kentucky law provides for a 30% the safety violation,” which “creates a In Dannels v. BNSF Railway Co., the determining coverage. enhancement of workers compensation financial incentive for an employer to court said the plain language of the FELA He explained that the standard for benefits if an accident is caused in any assign the most dangerous work positions reveals that Congress’ purpose was to summary judgment is “whether fair- degree by workplace safety violations to temporary employees.” enact a compensatory scheme for railway minded people differ in their conclusions committed by the employer. Alternatively, he urged the court to adopt employees who suffer occupational in light of all the evidence,” and he said While the legislature did not expressly a rule that “where a temporary help service injuries caused by the negligence of the record contained extensive evidence exempt temporary employers from the employer fails to exercise due diligence to their employer, but it did not intend “to regarding the amount of control Waste law, the court said the statute required furnish a place of employment free from regulate through the FELA the entire Management did, and did not, exercise Nathaniel Maysey to prove his employer, a recognized hazards likely to cause death or field of injuries and claims a railroad over its borrowed employees. staffing service company, had committed serious physical harm to its employees, the employee may have.” Among the evidence was a contract that the violations — not his employer’s client. temporary help service employer should be Thus, the court said, “the FELA does stated Mr. Stevenson was an independent Since there was no evidence that Mr. found to have acquiesced in the wrongful not occupy the entirety of the field of contractor, which, the court said, gave Maysey’s employer knew of the unsafe actions of its client, the host employer,” recovery for injured railroad employees so a “have your cake and eat it too” flavor practices at Magna-Tech Manufacturing thus subjecting the temporary help service as to preempt state bad-faith law claims to Waste Management’s argument that LLC, where it had sent him, the court employer to liability for enhanced benefits premised on a self-insured railroad’s Mr. Stevenson ought to be treated as said he could not receive an enhanced under state law. claims-handling conduct.” an employee. However, the court said award under state law. H. Clay List, who represented Mark Parker, who represented the the contract was not controlling, and it The court acknowledged that the Express Services, said the court’s ruling Washington Legal Foundation as amici, concluded that the evidence was sufficient result in Maysey v. Express Services Inc. “appropriately places the burden of said he feared the court’s decision “will for it to find Mr. Stevenson was a Waste is “harsh,” especially given the severity of ensuring a safe work environment on the further complicate an already complicated Management employee as a matter of law. Mr. Maysey’s injury and the “egregious” host employer rather than on the temp/ area of the law.” Justice Jeffrey Boyd wrote separately, nature of the safety violations, but the staffing agency, as temp/staffing agencies Dennis Conner, who co-represented the arguing that the majority decision created court said the harshness was “potentially have little to no control over the safety worker, Robert Dannels, said the decision “a new and different test for determining mitigated” by the fact there is a pending policies and procedures which their was good news for railway workers, whether a worker hired by a staffing federal civil suit in which Mr. Maysey is clients put in place.” because they now know they have “rights agency and assigned to the agency’s pursuing claims against Magna-Tech’s Mr. List reflected that “client and protection from being abused and client company qualifies as an employee parent corporation and the owner of the employers often use extremely complex mistreated by the people adjusting and of the client company under the Workers’ premises. and sophisticated technology and/or handling FELA claims.” Compensation Act.” Attorney Thomas W. Davis, who machinery of which the temp/staffing When an express contract provides that a represented Mr. Maysey, argued that agency has no knowledge or expertise, and Sherri Okamoto is a legal reporter at worker is not an employee or deprives the the staffing company, Express Services thus, rather than expect the temp/staffing WorkCompCentral, a sister publication of employer of the right to control, Justice Inc., “intentionally violated” its duty to agency to provide training, and to regularly Business Insurance.

BUSINESS INSURANCE JUNE 2021 33 PERSPECTIVES Tips for rebutting COVID-19 presumption

umerous states have enacted COVID-19 presumptions for first responders and essential workers, while many others are considering N enacting similar legislation. These presumptions allow employees who con- tract COVID-19 to meet their burden that the contraction arose out of and in the course of employment. Several states, including Minnesota, New Jersey, California and Alaska, have enact- ed COVID-19 presumption statutes but have not provided guidance to employers on how to overcome the presumption — over an extended period is not viable, then Even if a claimant meets their burden, a key for employers that want to prove a employers may still use the second method the issue that presents the most expensive worker may have contracted COVID-19 for their in-person workers. part of the claim remains: permanency. A elsewhere and not on the job. Employers have the most control using claimant still has to prove that they experi- The presumption in Illinois, signed into the second method by enforcing adequate enced permanent partial disability. That is law in June 2020, sets forth some methods health and safety standards in the work- a large burden given what we know about that allow employers to overcome the pre- place. Requiring that employees wear COVID-19’s symptoms. Most people sumption by a preponderance of evidence. masks and practice social distancing suffic- who are diagnosed experience a runny These methods may be useful for craft- es. Employers can build sufficient evidence nose, sore throat, cough, fever and diffi- ing rebuttable arguments in jurisdictions to overcome the presumption by creating culty breathing, in severe cases. Those con- that have not yet outlined such methods policies based on federal and local guide- ditions usually clear up relatively quickly, in their presumption statutes and where lines and documenting compliance with and most COVID-19 cases result in no there is still a lack of case law. those policies. significant permanent partial disability or The Illinois law created a rebuttable Although the second method does not extended time off from work. presumption that a first responder’s or indicate that employers should encourage COVID-19 exposure is unlikely to front-line worker’s COVID-19 infec- their employees to get vaccinated, doing result in diminished future earning capac- Rich Lenkov is a capital member tion arose out of and in the course of the so would serve as supporting evidence of ity or disability, which inform permanent and head of workers compensation employee’s employment. First responders an employer’s good faith effort to reduce partial disability in many states. Per the include policemen, fire personnel, emer- COVID-19 transmission in the work- CDC, most people diagnosed recover at Bryce Downey & Lenkov LLC gency medical technicians and paramed- place. Virginia’s COVID-19 presumption within weeks of contraction, and only a in Chicago. He can be reached ics. Front-line workers include health care statute denies health care workers com- small percentage experience severe post- at [email protected]. providers and essential business employees pensation benefits if they decline vaccina- COVID-19 conditions. who are required to encounter members tions from their employers. Other states The harder cases are those where Emilio Campos is an associate of the general public or work in locations including Illinois, Indiana and Maryland COVID-19 leads to death, which is with over 15 employees. have introduced similar laws that deny more common among older individuals in Bryce Downey & Lenkov’s The Illinois law includes three methods workers compensation benefits to workers and those with medical conditions such as Chicago office. He can be reached to rebut the presumption, calling for the who refuse to get vaccinated. asthma, diabetes and/or heart disease. If a at [email protected]. employer to show by a preponderance claimant dies from work-related COVID- of the evidence that: the employee was Employers can build sufficient 19, eligible survivors receive two-thirds of working from home and/or on leave from the employee’s weekly wage and compen- employment for at least 14 consecutive evidence to overcome the sation for burial expenses. days immediately preceding the injury, Novel COVID-19 symptoms such as occupational disease or period of incapac- presumption by creating policies loss of taste or smell will also be subject to ity caused by exposure to COVID-19; the litigation. Those conditions, if lasting, will employer enforced industry-specific work- based on federal and local have significant permanency value. place sanitation, social distancing, and In addition to COVID-19 presumption health and safety practices as defined by guidelines and documenting statutes, several states have introduced the Centers for Disease Control and Pre- compliance with those policies. legislation this year that could create pre- vention and Illinois Department of Public sumptions for severe infectious diseases, Health or used administrative controls, yet rebuttable presumptions are unlikely engineering controls and/or personal pro- For the third method, periodic employ- to be applied to common annual illnesses tective equipment to reduce COVID-19’s ee testing may indicate that an employee such as the flu. transmission for at least 14 consecutive likely contracted COVID-19 from an It is very rare for an employee to file for days prior to the employee’s injury, occu- alternate source. Additionally, any doc- workers compensation benefits for these pational disease or period of incapaci- umentation that an employee report- types of illnesses. Unlike COVID-19, sea- ty from exposure to COVID-19; or the ed coming into contact with someone sonal illnesses such as the flu are unlike- employee was exposed to COVID-19 diagnosed with COVID-19 outside of ly to cause an absence from work for an by an alternate source. work could serve as evidence of an alter- extended period and therefore would not Rebutting the COVID-19 presumption nate source, such as witness testimony or necessitate workers compensation benefits. is easy. The first method is most applica- employee admission that he or she came Another distinction is that such illnesses ble to employers operating their business into contact with someone outside of almost never result in permanent partial primarily remotely. If operating remotely work diagnosed with COVID-19. disability.

34 JUNE 2021 BUSINESS INSURANCE 2021 Property Insurance Survey

Ten percent of respondents said their companies have reduced the number of properties covered under their property insurance program due to the pandemic.

NUMBER OF PROPERTIES COVERED Reduced number of properties covered due to pandemic 10% BY ANDY TOH Did not reduce [email protected] number of properties covered 90% ixteen percent of the risk managers surveyed for this year’s Business Insurance annual Not sure 1% property insurance survey said their company’s policies — including business interruption — include losses related to diseases and epidemics, compared with 27% last year. More than one year into the COVID-19 pandemic, 81% of respondents said they did not buy, nor are they planning to buy, new pandemic coverage. S 2021 2021 Ninety percent of risk managers said they were satisfied with their current property insurance policies, compared with 88% last year. Only 8% of those surveyed said they will be looking for a new property 2020 2020 insurer in the coming year. The last time respondents switched their property insurers was about 8.5 years INCLUDES COVERAGE BOUGHT/PLANNING TO BUY ago on average. RELATED TO DISEASES NEW PANDEMIC COVERAGE 2021 AND EPIDEMICS 2020 2021 2020 2021 Yes, bought Yes 27% 16% coverage 0% 1% No 49% 68% Yes, planning 2020 Not sure 17% 11% to buy 14% 5% Prefer not 7% 6% No 30% 81% POLICY to answer Not sure 56% 14% SATISFACTION 2020 2021 Satisfied 88% 90% Not satisfied 7% 6% Not sure 5% 4%

Business Insurance commissioned Signet Research Inc. to conduct the annual property insurance survey, with additional questions following up on pandemic-related coverage questions that were added last year. The survey was sent via email in early April and received 385 responses. Only responses from 151 risk managers or insurance buyers who are involved with insurance purchase decisions for their organizations were used in the report. The base used is the total answering each question. Some charts may not total 100% due to rounding. Ninety percent of this year’s respondents said their companies moved their workforce to work-from-home as a 2021 result of the pandemic. About a quarter of the respondents estimated that half or more of their company’s workforce has or will be moved to working remotely permanently. Based on the responses, it is estimated that 29.4% of surveyed companies’ workforces will have or will be moved to work-from-home permanently.

2020

WORKFORCE TO STAY LOOKING TO WORK-FROM-HOME CHANGE INSURER PERMANENTLY MOVED 2020 2021 WORKFORCE TO 0% 17% WORK-FROM-HOME Yes 11% 8% 1%-9% 19% Yes 90% No 48% 55% 10%-24% 18% No 7% Not sure 40% 37% 25%-49% 12% No, already 3% working remotely 50%-74% 13% 75%-100% 11% Not sure 9% Mean = 29.4%

BUSINESS INSURANCE JUNE 2021 35 Fifty-four percent of this year’s respondents use only one insurer to For 2021, an average of 6.1 insurers participated in an organization’s cover all of their properties. Two-thirds of the respondents said they property insurance program, covering an average of $2.0 billion in total have more than 25 properties/facilities covered under their company’s asset value with an average total annual premium of $4.0 million. This property insurance program. There is an average of 88.9 properties or compared with an average of 6.4 insurers covering an average of $2.6 facilities covered per property insurance program. billion in total asset value at an average of $3.8 million total annual premium in 2020. At last renewal, 80% of respondents saw a rate increase, compared We use one insurer to cover all of our U.S. properties with 75% last year and 48% in 2019. The percentage of respondents and we do not have non-U.S. properties 37% who saw a rate decrease is 4%, compared with 6% and 16% in 2020 and 2019, respectively. Fifty-four percent We use multiple insurers to cover all of our U.S. 22% of this year’s properties and we do not have non-U.S. properties

respondents use We use one insurer to cover all of our 17% only one insurer U.S. and non-U.S. properties 2019 2020 2021 We use multiple insurers to cover all of our U.S. properties to cover all of 14% and multiple insurers to cover our non-U.S. properties their properties. We use one insurer to cover all of our U.S. properties and a 5% RATES 2019 RATES 2020 RATES 2021 different insurer or insurers to cover our non-U.S. properties Increase 48% Increase 75% Increase 80% Decrease 16% Decrease 6% Decrease 4% We use multiple insurers to cover all of our U.S. properties 2% Same 33% Same 18% Same 13% and one insurer to cover our non-U.S. properties Not sure 3% Not sure 2% Not sure 3%

Not sure 4%

The average rates increased 14.9%, compared with 13.2% in 2020 and 7.7% in 2019. Nineteen percent of respondents said they took a higher property deductible or changed their self-insured retention coverage. AVERAGE RATES INCREASED Two-thirds of 2019 2020 2021

respondents NUMBER OF PROPERTIES/ Average rates FACILITIES COVERED increased 7.7% 13.2% 14.9% said they have 1 4% more than 2 2% 3 2% Average rates 25 properties/ 4 0% decreased (5.1%) (4.5%) N/A facilities covered 5-10 10% 11-15 6% under their 16-20 3% 21-25 5% company’s Forty-seven percent of respondents said they have filed property More than 25 67% insurance claims not related to the pandemic. Ninety percent of the property Mean = 88.9 properties/facilities claims, compared with 86% last year, were not disputed.

insurance 12 MONTHS OF FILED CLAIMS program. 47% 49% 1% 3%

Filed a claim in Did not file Not Prefer not the past 12 months any claims sure to answer Sixty-one percent of the cov- ered properties are located in flood-prone zones, while 50% 12 MONTHS OF CLAIMS STATUS are in earthquake zones.

Flood ...... 61% Tsunamis ...... 10% Earthquakes ...... 50% Volcanic activities ...... 9% 90% 2% 3% 5% Hurricanes ...... 49% Other ...... 5% Claims were Claims were Not Prefer not Tornadoes ...... 41% None of the above ...... 17% disputed not disputed sure to answer

36 JUNE 2021 BUSINESS INSURANCE PANDEMIC-RELATED CLAIMS TERRORISM COVERAGE Six percent of survey respondents said they have made or are planning Almost unchanged from last year, 69% of respondents said their to make a claim under their property insurance coverage due to losses organizations have terrorism coverage. Thirty-seven percent said the related to the coronavirus pandemic. Nine percent of the risk managers coverage was included in the cost, compared with 24% last year. Those surveyed this year, whose companies do not have pandemic coverage who paid for terrorism coverage paid an average of 3.2% for it. under their property insurance programs, said they have made or intend 2021 to make a non-property insurance claim related to the pandemic, mostly under their workers compensation policies.

Breadth of coverage and price remained the top two factors 2020 determining which property insurers to choose. Sixty-seven percent of respondents this year said their organizations’ policy providers offered TERRORISM COVERAGE Six percent other value-added services. 2020 2021 2020 2021 Yes, included of survey BREADTH OF COVERAGE in the cost 24% 37% respondents 91% Yes, at additional cost 43% 32% 82% said they have No 29% 27% PRICE Not sure 4% 4% made or are 74% 72% planning to make VALUE-ADDED SERVICES a claim under 14% their property 13% insurance SERVICING TEAM MEMBERS CAPTIVES 6% coverage due to The percentage of respondents who used captives to insure some or 13% all of their risks is 18% this year. losses related to BUYING FROM CURRENT PROVIDER 2019 2020 2021 the coronavirus 6% 7% pandemic. OTHER 74% 72% 78% Not using Not using 3% Not using captives captives captives 2%

8% 4% 4% Not 18% Not 25% Not 18% Breadth of coverage, price and value-added services remained the top Using sure Using sure sure Using three most important factors that will motivate risk managers to switch captives their policies. captives captives 2020 2021 BREADTH OF COVERAGE 79% 79% FM Global remains the most frequently used property insurer in this year’s survey. PRICE 77% FM Global 18% 75% Zurich Insurance Group Ltd. 9% VALUE-ADDED SERVICES American International Group Inc. 8% Sixty-nine 42% Lloyd’s of London 8% 41% Chubb Ltd. 5% percent of SERVICING TEAM MEMBERS Travelers Cos. Inc. 5% respondents 22% Hartford Financial Services Group Inc. 3% 23% said their CNA Financial Corp. 2% NOT LOOKING TO SWITCH POLICIES organizations Liberty Mutual Insurance Co. 2% 16% have terrorism 18% Berkshire Hathaway Inc. 1% Hanover Insurance Group Inc. 1% coverage. NEW INSURERS 2% QBE Holdings Inc. 1% 2% Swiss Re Ltd. 1% OTHER Axa XL, a unit of Axa SA 1% 7% Other 29% 5% Not sure 4%

BUSINESS INSURANCE JUNE 2021 37 OPINIONS

COMMENTARY

DOES THE PUBLIC WANT TO GET Incentives play role A COVID-19 VACCINATION? WHEN?

in vaccine drive 64% ull disclosure: I had my second COVID-19 shot about six weeks ago and I’m cautiously beginning to enjoy an easing of the restrictions we’ve all endured over the past year or so. F Having said that, I respect other people’s decisions not to have the vaccine. In many cases they may have medical reasons not to have a shot, may be concerned about side effects or may simply be waiting until the various vaccines are fully approved by the U.S. Food and Drug Administration before offering up their arms to the needle. Others are suspicious of the motives behind the push and still 15% 13% others have individual reasons why they won’t participate. As a result, we are likely far from the point where nearly everybody 6% is vaccinated against COVID-19, and we will have to make Already/ASAP Wait and see Only if required Definitely not adjustments to reflect that reality. Source: Kaiser Family Foundation Employers, too, are having to make changes as a significant number of workers remain unpro- tected. When the vaccines became available late last year, many VIEWPOINT employers indicated that they would encourage workers to have a shot rather than mandate vacci- nation as a condition of returning Creativity amid pandemic to the workplace. On such a sensitive and poten- BY CLAIRE WILKINSON Family dinners, with everyone coming together in tially contentious issue it made [email protected] the kitchen to explore new recipes and share con- sense to take a soft approach, but versation, were a particular highlight. One honor- Gavin Souter some employers are now having to id you take up a new hobby during the pan- ee expanded his love of coffee by having different EDITOR make hard decisions about wheth- demic? Like many people who found them- roasts and beans shipped in from around the world, er to compel some workers to be selves stuck at home with extra time on their while another brewed his own beer. Maintaining a vaccinated. While remote staff are still usually allowed to make D hands — or at least no commutes or busi- sense of adventure and experiencing new cultures their own choices, workers in some industries, especially those ness travel — Business Insurance’s 2021 Break Out and worlds even from the confines of their homes in the health care sector, may be compromising the safety of Awards winners reported taking up a variety of is a lasting hobby for many. others if they are not protected themselves. hobbies in the past year. Some of them were new Working where they live has also brought on a As we report on page 4, some hospitals are informing work- activities, while others chose to revisit a pastime that growth in DIY hobbies. Several recipients took their had been long forgotten or put to one side amid minds off the pandemic by focusing on yardwork and ers that they must be inoculated against COVID-19 to contin- competing demands for their time. The ability to fixing things up. Others embraced gardening and ue working, and some employees are choosing to give up their connect with others was not lost despite the need developed green thumbs with one going from two jobs rather than comply. for social distancing. plants pre-pandemic to now 17. Doing more with If employers do choose the mandatory route, they must be There were life changes — getting married, less became a creative outlet, and at least one winner careful not to violate privacy rights and respond appropriately becoming a first-time parent or adopting a puppy. reported developing an interest in interior design. if staff suffer side effects from a shot and need time off. But Many of our award winners reported trying to find And that’s not all. Other winners took up photog- given worries over patient and customer safety and concerns new ways to exercise in a world where gyms were raphy or backgammon. One bought a speed boat, over potential liability, it was perhaps inevitable that some closed. Long and regular walks were popular, as one started to play the stock market, while another employers opted to take a harder line. were Zoom-based classes, including Peloton. Many found comfort in jazz. If there’s a common thread That does not mean, however, that employers should give found ways to get outside, whether roller-skating, to the pandemic hobbies and habits adopted by this up all the incentive carrots and just wield the termination stick kayaking, skiing, playing tennis or rounds of golf year’s BOA winners, it is that they didn’t let the as they strive to have more workers protected from the virus. and my personal favorite, disc golf. Ingenuity played restrictions of a global pandemic limit their free time. Some companies are already offering paid time off and cash a role as one winner who lived in a large condo Just as for millions of people who had their regular incentives to encourage workers to go get a shot, but there’s building reported running up and down stairs to stay lives disrupted and started a pastime as a way to take fit. Yoga was among the most popular routines, with their minds off the new reality they found themselves potential to be even more creative. In the public sphere for one winner even inspired to become a certified yoga in, many of this year’s winners said these pandemic example, Ohio’s “Vax-a-Million” drawing for the chance of teacher during the pandemic. The ability to quiet habits have continued. The ability to adapt to change winning $1 million or a college scholarship if they got vacci- the mind amid distractions was sought after, with and disruption and still be creative, not an unfamiliar nated led to a rush of people rolling up their sleeves. many practicing meditation as part of their routines. feature of the impressive career paths taken by the 40 While some may view the stunt as extreme, one thing we’ve As many restaurants were off-limits for indoor BOA winners, is a long-lasting skill that insurance all learned is that innovative thinking is critical to suppressing dining and business travel took a back seat, people and risk management professionals will take with the pandemic. turned to baking, cooking and grilling at home. them well beyond the pandemic. 38 JUNE 2021 BUSINESS INSURANCE PERSPECTIVES Artificial intelligence deployed to reduce ergonomic risks as employees return

usinesses contemplating the return desk that does not align with their own the solutions themselves. To illustrate of employees to physical workplaces height, assessment tools may suggest ways this point, the National Safety Coun- have a lot on their plates, regardless to optimize the employee’s positioning, cil’s “Injury Facts” publication analyzed of whether they’re updating office perhaps by adjusting their chair or moni- findings from the National Council on B layouts to protect workers from tor or even placing something under their Compensation Insurance’s workers com- COVID-19 or reopening facilities that feet, depending on the scenario. pensation statistical plan database and were shut down during the pandemic. Similar tools can be used in industrial found that, on average, workers compen- Careful planning around these moves is settings. In these spaces, common ergo- sation claims netted out to about $41,000 critical, but it is also important for com- nomic risks include, but are not limited to, in 2017-2018. If a company purchases a panies to ensure that other workplace handling and lifting heavy materials, repet- load-leveling table for around $3,000, for considerations do not fall by the wayside itive motions and suboptimal postures. example, and the table prevents even just — namely, potential ergonomic risks. To help mitigate risks that could arise one claim, the potential cost savings can Whether adopting permanent or hybrid due to these triggers, safety managers be significant. work-from-home models, returning to should tour their facilities and survey the office or resuming activity at facilities, how materials are handled and stored. Companies should work with it is crucial for companies to make sure As a best practice, companies should they have ergonomically sound set-ups in avoid storing materials at or near ground their insurance agents or place to safeguard employees’ wellbeing. level and above shoulder level, as these While doing so has historically been more placements often lead to high-risk pos- brokers to identify insurers with of an art than a science, the use of artifi- tures and poor ergonomics. Identifying cial intelligence in ergonomic risk evalua- these basic material-handling tasks will deep experience in ergonomics tions has made identifying and preventing allow safety managers to reassess current such risks much easier. processes and make adjustments so that that also offer personal unnecessary lifting and awkward postures consultations – virtually, Leveraging data can be avoided. Safety managers should also investi- in-person or a combination. Regardless of a company’s workspace — gate whether workstations are set up so be it a traditional office or more industrial that tasks can be completed within the setting — potential ergonomic exposures belt to chest level, close to the operator’s This is especially important to consider abound. Typically, these risks relate to the body. This positioning allows employees given that strenuous physical workplace Timothy Lohrmann is practice force, frequency and duration with which to work from a more neutral posture, in activities, even if not performed regular- leader, office ergonomics, for Chubb employees carry out their work. which they are less likely to get hurt. ly, could aggravate pre-existing employ- In office settings, duration is an espe- In addition to these measures, work- ee injuries. By doing everything in their Global Risk Advisors, a unit of cially common trigger, as employees nor- place safety managers should consider power to reduce the physical toll work Chubb Ltd. He can be reached mally sit at their desks for long periods leveraging data-driven assessment tools may have on employees, companies are at [email protected]. each day. Desks, monitors or chairs that similar to those used for office ergonomic in a better position to prevent incidents are not the appropriate height or distance evaluations. Some tools allow safety man- from occurring. Marcus Fichtel is principal from employees’ bodies — such that agers to conduct assessments in real time Additionally, some of these assessment consultant, industrial ergonomics employees are left in static, suboptimal using their mobile devices. tools can track assets that employees may practice lead, for Chubb Global postures — could eventually lead to inju- After analyzing onsite work, data is have taken home while working remotely ries such as chronic fatigue, headaches, uploaded to the cloud and presented on and may benefit them upon their return Risk Advisors. He can be reached reduced core flexibility, lower back pain a dashboard that offers a comprehensive to the office. This reflects further poten- at [email protected]. and more. risk analysis of the entire body. Through tial for companies to save on equipment this analysis, safety managers can discern that employees may already have at their Some insurers offer AI-enabled which body segment is at the highest disposal. risk and subsequently deploy resources assessment tools that empower and plan more effectively. Such measures Working together might include improving workstation employees to evaluate their design and implementing material han- If employees are experiencing extreme dling lifting aids — to reduce strain on discomfort or ergonomic risks are excep- workspaces and course-correct employees’ backs and upper extremities tionally high, companies may benefit from — or introducing more effective job rota- consulting an ergonomist. To this end, pain points contributing tion schedules. companies should work with their insur- to ergonomic risks. ance agents or brokers to identify insurers Cost benefits with deep experience in ergonomics that themselves to further reduce the risk of also offer personal consultations — vir- injury on the job. Companies should work with their insur- These data-driven assessment tools not tually, in-person or a combination of the Ensuring that employees have the infor- ance agents or brokers to seek out insurers only help ensure worker safety across two — and customized solutions to meet mation they need to make these choices with robust risk consulting offerings that industrial and office settings, they also client needs. is crucial. can help them mitigate such risks. help protect companies’ bottom lines. In addition to consultations, some While much of what lies ahead remains Some insurers offer AI-enabled assess- While purchasing solutions recom- insurers offer training programs to help uncertain, one thing is clear: Together, ment tools that empower employees to mended by these data-driven assessments employees protect themselves from ergo- insurers, agents and brokers, and busi- evaluate their workspaces and course-cor- might seem like a big investment, they nomic risks. From standing up and tak- nesses — from risk and safety managers rect pain points contributing to ergonom- can help companies avoid costly workers ing a break after a long period of sitting to employees — can join forces to help ic risks. For example, if an employee indi- compensation claims down the line that to learning about proper body posture, ensure a safer, healthier and happier cates that they’re sitting at a fixed-height are several times more expensive than there are several steps employees can take workforce.

BUSINESS INSURANCE JUNE 2021 39 MARKET PULSE DEALS & MOVES

First Indemnity unveils Coverage is available through appointed excess cover for law firms brokers in the eight states in which Fore- Gallagher agrees to buy PRODUCTS sight operates: Arkansas, Arizona, Cali- n range of Willis businesses First Indemnity Insurance Group has fornia, Louisiana, Nevada, New Mexico, launched its Excess Protect insurance Oklahoma and Texas. Arthur J. Gallagher & Co. has agreed to coverage for law firms of up to 750 & Foresight added it “is poised to launch in pay $3.57 billion for various Willis Tow- attorneys. several key states and add additional com- ers Watson PLC businesses that will help Excess Protect was created in response mercial lines to its platform later this year.” Aon PLC secure its much bigger deal to to shrinking capacity and higher rates in SERVICES buy Willis. the professional liability market, Bos- The deal includes most of Willis’ rein- ton-based First Indemnity said. Neptune launches surance business, which would make Gal- The minimum attachment point is flood insurance program lagher the No. 3 broker in a field it only $100,000, with limits available up to $10 began to significantly compete in over the n million, according to John Randolph, vice Neptune Flood Inc. launched a $30 past several years, and adds retail business- president of First Indemnity, who added million capacity flood insurance program es in France and several other European the coverage “can help close coverage gaps sponsored by Princeton, New Jersey-based countries as well as some specialty busi- for firms.” Transverse Insurance Group LLC. nesses in the United States. Coverage can be written on an admitted The program, which offers an alterna- The announcement comes after Euro- or non-admitted basis, with both follow tive to the government-backed National pean Union regulators pressured Aon to and non-follow forms available. Flood Insurance Program, is backed by a sell various businesses to secure antitrust Lexington offers panel of global reinsurers and was placed approval of its purchase of Willis, which health care through Acrisure Re, the reinsurance was announced in March 2020. Origami launches broking arm of Grand Rapids, Michi- Gallagher will acquire businesses rep- online safety tools facility cover gan-based Acrisure LLC. resenting about $1.3 billion in annual Limits of up to $4 million in build- revenue with $357 million in earnings n Origami Risk LLC has unveiled four Lexington Insurance Co., an ing coverage and $500,000 in contents before interest, taxes, depreciation, amor- online safety and management tools for American International Group Inc. coverage will be available for businesses tization and coronavirus and more than environment, health and safety profes- company, has launched enhanced and homeowners under the program, a 6,000 staff. About $750 million relates sionals, the Chicago-based technology professional liability and general spokeswoman for St. Petersburg, Flor- to reinsurance revenue, $500 million to firm announced. liability coverage for miscellaneous ida-based Neptune said in a statement. European insurance broking revenue and The expansion includes tools for con- health care facilities. Transverse is a hybrid fronting insurer $50 million to North American revenue. ducting job safety analyses; building Coverage is available to small- and that serves the program, managing gener- The deal with Gallagher is contingent compliance libraries for chemical man- medium-sized facilities and broader al agency and reinsurance markets. on the closing of the Aon-Willis deal, agement; managing lockout/tagout safety mid-market health care providers, The Federal Emergency Management which is now expected in the second half procedures through devices; and organiz- including home health care agencies, Agency earlier this month unveiled Risk of 2021. ing, scheduling and reporting attendance community health care facilities, Rating 2.0, the first update to the NFIP’s at safety meetings. physical therapy providers and sur- flood insurance pricing system in 50 years. gical centers. As a result, many businesses will see AssuredPartners The policy provides coverage for their NFIP flood premiums increase, acquires Texas agency MGA offering commercial medical directors, employees and though market sources say this will likely property insurance lines volunteers, and includes professional spur private flood insurers to expand their AssuredPartners Inc. acquired Texas and general liability with dual tower coverage, increasing competition in the Associates Insurors Agency LP of Austin. n Foresight Group Inc. has launched aggregate limits. market. Terms were not disclosed. commercial property insurance lines, Limits available are $1 million per TAI, which provides customized risk including inland marine, contractors occurrence/$3 million aggregate for management and insurance plans for busi- equipment and builders’ risk offered as a both general liability and professional Association captive offers nesses and individuals in Texas, reports complement to workers compensation. liability in separate towers, according cannabis operators cover $10 million in annualized revenue. San Francisco-based Foresight, a man- to an email from a spokesman. Its 48 employees will remain under the n aging general agent using a digital plat- The policy includes disciplinary Cannabis dispensaries and associated leadership of TAI partners, including JD form, says it is focusing on middle-mar- action coverage, subpoena and depo- grow facilities can obtain property, gen- Steanson, Randy Reynolds, Gary Gris- ket segment buyers such as construction/ sition assistance coverage, trial atten- eral premises liability and product liabil- som, James Russell and Coy Sunderman. trades, solar farms, agriculture, manufac- dance per diem and Good Samaritan ity coverage through TrichomeTM, the turing and light industrial. coverage. insurance brand of the association captive Limits available for builders risk are Coverages available by endorse- owned by The National Cannabis Risk Hub acquisition expands frame limits up to $3 million (single-fam- ment including employee benefit Management Association, the group said. footprint in Northwest ily homes up to $1.5 million); masonry liability, crisis management, Health Products are available immediately, and non-combustible and better, up to $20 Insurance Portability and Account- additional lines of coverage and progres- Hub International Ltd. acquired the million; optional flood and earthquake ability Act civil monetary penalties, sion up the vertical are planned for later assets of Bellevue, Washington-based coverage, up to $5 million for eligi- and options for defense expenses this year, the association said. Conover Insurance Services LLC and ble locations; motor truck cargo, up to outside of limits of insurance. Rocco Petrilli, chairman of the some affiliates. $250,000 per power unit/$500,000 per Policyholder services include Lex- NCRMA, said, “We believe that effective Terms were not disclosed. occurrence, fleets up to 10 power units, ington Healthcare’s risk management risk management practices are essential In addition to its Bellevue headquarters, and target operation types including dry consultation helpline; risk assessments for moving the cannabis industry forward Conover has offices in Pasco, Prosser, van/box, refrigerated freight, flatbed and of high exposure areas like behavioral in a sustainable way.” Vancouver and Yakima, Washington; and containerized freight, and optional spoil- health and perioperative; onsite/ The launch of TrichomeTM, he said, Chico, California. age/freezing coverage is available; for virtual risk management education; “is a direct response to our members’ The broker provides commercial cov- contractors equipment, equipment limits virtual crisis prevention and verbal expressed need for fairly priced and risk erages including surety and bonding and up to $500,000 per item/$3 million per de-escalation training; and emerging management-based insurance cover- specializes in the agriculture, construction, schedule, all according to an email from exposure advisories and alerts. age to a rapidly emerging and evolving transportation industries and tribal groups. a spokesman. industry.”

40 JUNE 2021 BUSINESS INSURANCE PEOPLE ON THE MOVE

Axis Reinsurance Co. named London- based Ann Haugh president of the firm’s new global property UP CLOSE division, effective July 1. Previously, Ms. Haugh was president of global markets. She was one of Business Insurance’s Women to Watch in 2012 Heather Wilkinson while with Zurich Insurance Co. Ltd.

NEW JOB TITLE: Southern California-based principal, EPIC Insurance Brokers EPIC Insurance Brokers and Consultants. and Consultants hired captive insurance PREVIOUS POSITION: Southern California-based director, cyber and errors and executive Sam omissions group, Willis Towers Watson PLC. Wagener from Artex OUTLOOK FOR THE INDUSTRY: Cyber insurance is constantly changing as new Risk Solutions Inc. as threats emerge and evolve. The industry is struggling to continue to offer meaningful principal in its property/ and viable solutions in the wake of heavy losses due to ransomware. As underwriting casualty operations in “Collaboration with clients to criteria evolve, our job as brokers is to help our clients adapt and become better and be the West. Mr. Wagener was previously more in tune with current and developing risks. Collaboration with clients to view cyber senior vice president — group captives at view cyber risk holistically risk holistically and not just as a function of risk transfer will help the entire industry Artex, a unit of Arthur J. Gallagher & Co. respond to changing attack vectors amid the fast-moving cyber risk landscape. and not just as a function Aon PLC appointed GOALS FOR YOUR NEW POSITION: This position will focus on creating innovative Wendy Knobel a of risk transfer will help solutions and driving synergies across the region. The focus will be on business senior representations development and the design, placement and management of cybersecurity programs and warranties the entire industry respond and solutions for mid-market and large clients. broker. Previously, Ms. Knobel was a CHALLENGES FACING THE INDUSTRY: Due to heavy losses coming on the tail end of to changing attack vectors managing director in years of very competitive rates, the cyber market is very hard. Insurers are struggling the M&A insurance amid the fast-moving with offering some elements of extortion and first-party coverages. The tech E&O group, senior R&W underwriter for market is shrinking even as there is a push toward automation and increased reliance American International Group Inc. cyber risk landscape.” on technology solutions. Outsourced and managed service providers have emerged as She is based in San Francisco. recent targets, further challenging the market’s ability to underwrite to silent cyber. FIRST EXPERIENCE: My experience dates back to 2007 when the industry as a stand- Lockton Cos. Inc. alone product was really becoming regularly available. has recruited Patrick J. Haraden ADVICE FOR A NEWCOMER: My advice is to learn all you can from those around you as president of its and to participate in as many learning sessions as you can. It’s no longer enough to Boston operations. just know the insurance side; having some understanding of the major threats as well Mr. Haraden had been as the solutions being deployed to combat those threats is also key. area president in DREAM JOB: I heard that there is an organization offering a small sum of money and New England and the Northeast regional director of Arthur J. free travel to go to certain MLB stadiums and watch baseball and sample stadium Gallagher & Co.’s public sector practice. food. If I could make a career out of watching sports and eating, I think cyber insurance would have a run for its money. Zurich Insurance LOOKING FORWARD TO: I’m looking forward to the fresh perspective of new Group Ltd. has colleagues and building something really special. EPIC invests in people, and that promoted Hayley shows in the warm welcome I’ve received since I started here. Robinson to group chief underwriting COLLEGE MAJOR: English literature, which helps with reading contracts and policies. officer. Ms. Robinson FAVORITE MEAL: I have three kids, so I think pizza is probably our go-to. replaces Sierra Signorelli, who was FAVORITE BOOK: “Lord of the Rings” trilogy. named CEO of commercial insurance HOBBIES: I love running and sports and watching my kids’ sports. following the departure of James Shea. Previously, Ms. Robinson was ON A SATURDAY AFTERNOON: I usually get up early and get a run in before U.K. chief underwriting officer. I become a taxi service to various youth sports. TigerRisk Partners LLC named Bernardsville, New Jersey-based Jack Snyder head of insurtech origination and head of financial advisory. Previously, Mr. Visit www.businessinsurance.com/ComingsandGoings for a full list of this month’s personnel Snyder was managing moves and promotions. Check our website daily for additional postings and sign up for the director, head of the strategic ratings SEE MORE ONLINE weekly email. Business Insurance would like to report on senior-level changes at commercial insurance companies and service providers. Please send news and photos of recently advisory unit at Guy Carpenter & Co. LLC. promoted, hired or appointed senior-level executives to [email protected].

BUSINESS INSURANCE JUNE 2021 41 OFF BEAT

Comp fraud is no DOCTORS WON’T laughing chatter wo radio disc jockeys in Australia were in “stitches” upon hearing T about a listener’s tale of workers compensation insurance fraud TOLERATE USDA’S involving a phony physiotherapist, all in the name of helping out a friend. Pet owners protect “I need you to be a physio. their furry friends I just need you to have a fake physio studio he new Scooby snack? DAIRY GUIDELINES that I can go to, to fix Health insurance. my fake injury,” the T A recent survey found that people are call-in listener “Todd” three times more likely to have insurance told chuckling Lewis for their pets’ health as they are to have Hobba and Michael Hing, critical illness cover for themselves. who host the “Hobba and According to a survey conducted in Hing” afternoon drive show on the the U.K. by the insurer Halifax, 18% of alternative radio station Triple J. respondents have taken out pet insurance “We made a fake physio studio and while just 6% have critical illness cover, we sent the insurance company bills Yahoo! Finance News reported. for physio work to fix his fake injury The survey suggests “the volume of new and they paid us,” the listener bragged. pets being acquired during coronavirus Not amused at the scam were others lockdowns may have encouraged people listening, including the Insurance to purchase protection for their animals,” Council of Australia, and listeners, according to the news outlet. with one tweeting: “How is this funny? Insurance fraud costs the rest of us, big time. … Yeah hilarious. Grow up.” Skittles bristles at pot firm’s pitch marijuana company is accused of a “freewheeling” use of the Wrigley A Co.’s Skittles’ colorful mark, slogan and logo, according to a recent lawsuit filed by the candy giant against Terphogz LLC, a California company that markets marijuana products. Terphogz’s use of Wrigley’s Skittles brand for its “ZKITTLEZ” products “has been enormously successful” and Now hiring (really): the company “has reaped enormous profits” as a result, (b)ut Colonial Pipeline those ill-gotten gains have now a good risk manager? come both at the expense Cybersecurity expert? of the public which K Colonial Pipeline, recently hit by believes that Wrigley a major ransomware attack that led to approves the ZKITTLEZ problems at the gas pump throughout the goods being peddled by Southeastern United States, is hiring — and Terphogz and at the expense trio of doctors is screaming over the U.S. Department of Agriculture’s had been before the incident, the Atlanta of Wrigley, which has lost control over recommended daily allowance of ice cream, cheese, milk and more. Journal-Constitution reported. the reputation of its SKITTLES Marks,” The USDA’s recently recommended three-a-day allowance of dairy, The Alpharetta, Georgia-based company according to the lawsuit, filed in a which causes digestive discomfort for about a quarter of Americans who was reportedly trying to fill the two federal court in Chicago. are lactose-intolerant, prompted a lawsuit filed in U.S. District Court for security leadership positions “just weeks” The suit includes photos of both Athe Northern District of California against the USDA by three doctors, all asking before it was hit with the ransomware brands, drawing similarities in that the question: why so much dairy when so many can’t have it? attack, the newspaper reported. both brands use bright colors and As reported in The Washington Post, the lawsuit alleges the three-per- Georgia Tech’s dean of engineering told similar fonts on packaging and more. day standard on dairy contradicts current scientific and medical knowledge, the newspaper he wasn’t surprised that Wrigley’s suit says the confusion over harming people who are lactose-intolerant. The suit suggests that the USDA is Colonial had job openings. candy and marijuana poses a danger looking out for the interests of the meat and dairy industries rather than the “There is a significant shortage of to children and that Illinois recently health of Americans. cybersecurity professionals that understand enacted legislation prohibiting cannabis “The USDA’s conflict of interest is perhaps best illustrated in its statement that energy,” Raheem Beyah, who is also an companies from imitating candy. ‘most individuals would benefit by increasing intake of dairy,’ even though there is electrical and computer engineering no convincing evidence that this is true,” one of the plaintiffs told the newspaper. professor, told the newspaper.

42 JUNE 2021 BUSINESS INSURANCE NOMINATIONS OPEN! SUBMISSIONS DUE JUNE 18

Business Insurance Innovation Awards, now in its 12th year, recognizes innovation in new products and services that insurers, brokers, TPAs, technology companies and other service providers create for professional risk managers.

WHO QUALIFIES? • Any product, service or program that show innovation in risk management practices. • Submissions can be made by a single company/person or by a team of individuals that collaborated on a product, service or program.

HOW DO I SUBMIT? • All submissions must be made via the online form at: BusinessInsurance.com/Innovation. • Anyone familiar with the product, service or program being nominated can make a submission. • There is no fee to make a submission. • Each company may make up to five (5) nominations.

TIPS FOR A STAND-OUT NOMINATION Provide a good narrative along with supporting data. Write your submission with risk managers in mind as your audience as our judging panel is comprised of senior risk management experts.

RECOGNITION • Winners will be announced online in Summer 2021 and will have featured profiles on BusinessInsurance.com and in the bonus Insurtech September 2021 print issue of Business Insurance. • Business Insurance will host an awards ceremony honoring all the winners in Fall 2021. Details to follow this summer.

LEARN MORE & NOMINATE >> BusinessInsurance.com/Innovation CONTACT US SUSAN STILWILL BI EVENTS TEAM HEAD OF SALES - EVENTS [email protected] (312) 833-4099 [email protected] MORE IMAGINATION.

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