CLM Show Daily Friday, March 31, 2017

GAYLORD OPRYLAND RESORT & CONV E NTION CE NTE R | NAS HVILLE , TN | WW W. T H E C L M . ORG F R I DAY, M A R C H 3 1 , 2 0 1 7Claims Executives DiscussChallenging World of AutomationBy Eric Gilkey in-house that Markel used to look at 1,000 pany’s claims examiners aren’t required to doY esterday’s packed day of edu- closed claims. By extracting text, he said the until 60 to 90 days. When he compared the cation kicked off with a panel program was able to reserve the claims file discussion between five insurance within the first 15 days—something the com- Executives, continued on page 9 E claims executives, tackling sub-jects that ranged from the role of data science CLM Announces Universal Claim Certificationto talent management and career advice.Markel’s Chief Claims Officer Nick Conca During yesterday’s opening session, CLM Chief Executive Officer Adam Pottermoderated the panel, which included Gallagher unveiled a new initiative that seeks to create a universal claim certification (UCC),Bassett’s CEO Scott Hudson; Sedgwick CEO and announced that one state has already signed the legislation into law.Dave North; Crawford & Co.’s Global COOAndrew Robinson; and York President and Potter says claims professionals are, on average, licensed in 15 states, and thatCEO Rick Taketa. 34 states require it. Since each state currently has its own system of licensing and different reciprocity rules, there is tremendous administrative overhead for The topic of advancements in data science insurance companies and TPAs to handle.took centerstage early, sparking an interestingdiscussion on the future role of the claims pro- The UCC was developed using the most stringent states’ requirements andfessional and advancements in the business of regulations, and someone who holds a UCC will be able to efficiently secure aclaims handling. license in any other state that accepts the UCC. “The single greatest potential for innova- In a big step toward nationwide implementation, the legislation recently wastion going forward in our industry will be due signed by Mississippi Governor Phil Bryant and will become law on July 1, 2017. Theto data science, especially for organizations like CLM and its board are currently working on legislation for Florida, Texas, Alabama,ours that are in the business of preventing and and Louisiana.managing complex, high-value claims,” saidHudson. “It’s not about processing claims fasteror more efficiently; it’s about figuring out howto leverage data in new and innovative ways tomake better decisions.” The discussion then moved to the effectthat data science would have on automationand how it could impact high frequency, lowdollar claims. “Most P&C insurers have a very smallpercentage of claims that amount to a very highpercentage of losses,” said Conca. “In otherwords, there is a large volume of small claimsthat we have to devote a lot of resources to. Thenotion that we’re not going to figure out how toautomate that is pretty naïve.” Conca supported his statement by citinga text mining software program developedGAYLORD OPRYLAND RESORT & CONV E NTION CE NTE R | NAS HV ILLE , TN | WW W. T H E C L M . ORG

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CLM DAILY NEWS FRIDAY, MARCH 31, 2017 // PAGE 3FRIDAY, MARCH 31 1:00pm-5:30pm SOCIAL EVENTSSchedule at a Glance All groups should meet in Delta D at listed times.7:30am–8:30am Tell Me Lies: Advanced Strategies forBreakfast, E1 (Wilson Elser) Dealing with Fraud A Musical Journey Through B3 (CSC) Nashville8:30am–10:00am The afternoon begins with a stop atPremier Panel: The Duty to Initiate Settlement the Ryman Auditorium. From there,Technology in Action Discussions Without a Demand by the the group heads over to the CountryE1 (Wilson Elser) Claimant Music Hall of Fame. Admissions B10 (Litigation Management Inc.) included in pricing. Lunch not included.10:00am–10:25am Buses depart the hotel at 1:00pm andRefreshment Break The Hapless Insured: Seriously, Do I return at 5:30pm. Have to Intervene?10:25am– 11:30am B6 (Judicate West) Kitchen Culinary Tour atCONCURRENT SESSIONS 1 Belle Meade Tour one of the South’s greatCaught on Video: Employers, The Risk with Cannabis: A “Joint” mansions, Belle Meade Plantation.Municipalities, and Trial by Social Media Presentation with an Industry Insider, The tour begins with the fully restoredD2 (Authentic 4D) Underwriter, and Defense Counsel Greek Revival Mansion. Then you will A2 (Transcend Services) spend time in the original PlantationEffective Management of Employment kitchen where southern cooks will letPractices Litigation (EPL) Claims Wave It Goodbye? How to Lose and you participate in cooking and tastingB4 (Engles, Ketcham, Olson & Keith) Keep Privileges in First Party and Bad southern classics. The tour also Faith Cases explores the kitchen’s root cellar, herbEmployment Law Update: What D6 (Roig Lawyers) garden, and the largest antebellumHappened in the Past Year and What smokehouse in the South. The finalLies Ahead What In-House Counsel and Clients stop will be a sampling of five wines inD5 (Melchiode Marks King) Need to Know About Private Data the winery. Admissions to Belle Meade Security Breach Litigation included in pricing. Buses depart theEvidence-Based Medicine: How to B9 (Kroll Advisory Solutions) hotel at 1:00pm and return at 5:00pm.Educate the Court and JuryA1 (Stuart, Maue, Mitchell & James Ltd.) Exploring Nashville’s History Begin the afternoon with a driving tourHold On: What About an Expert, through the downtown Nashville area,Can We Afford One, Can We Afford including Fort Nashboro, RiverfrontNot to Have One? Park, and The District. Stops includeB1 (Atkinson-Baker Court Reporters) the Tennessee State Museum, Bicentennial Capitol Mall State Park,How to Properly Analyze a Statement: and Centennial Park with a tour ofStop Looking for the Lies and See the The Parthenon. Admissions includedTruth in pricing. Buses depart the hotel atB7 (Kalbaugh Pfund & Messersmith) 1:00pm and return at 5:00pm.Make Your Choice, Then Live With This Brew’s for YouIt: Considerations in Choosing Truck Hefeweizen or Pale? IPA or Stout?Safety Technology One of Nashville’s local beer expertsA3 (Your House Counsel) will guide guests as we explore two Nashville breweries and sample beer atMedicare Madness: Free Throws, each location. Snack packs provided.Layups, and Slam Dunks on Prevailing Buses depart the hotel at 1:30pm andMSP Issues return at 4:45pm.B8 (Kelley Kronenberg)Mock Mediation: Explosive CoverageArguments Meet Bad FactsD1 (Alan Gray)GAYLORD OPRYLAND RESORT & CONV E NTION CE NTE R | NAS HV ILLE , TN | WW W. T H E C L M . ORG

PAGE 4 // FRIDAY, MARCH 31, 2017 CLM DAILY NEWSUsing Science and Preparation toCreate Bulletproof CasesBy Bevrlee J. LipsR emember your childhood school days “I see an exploitation of science and medi- be shared, such as the Federal Judicial Center’s and sitting in science class asking cine being employed for the purposes of beating Reference Manual on Scientific Evidence, Third yourself, “Why do I have to learn this? the summary judgment motion, generating a Edition; the Agency for Toxic Substances and I’m never going to use this in my life.” higher settlement, or if you’re going to verdict, Disease Registry (ATSDR), the National Acade-In today’s session, “Evidence- trying to increase the amount of damages,” says my of Sciences, Google Scholar, and the National Richard Finn, one of the session’s presenters Library of Medicine’s PubMed, to name a few.Based Medicine – How to and a partner with Burnham Brown. “One has to engage in an approach that permits effective It’s easy to diagnose a broken arm and howEducate the Court and the Jury,” communication with people who may not be fans to treat it, but if you have a mild traumatic brain of science.” injury, there is a whole different analysis that hasyou’ll not only find out why that to be done. What is the consequence of that inju- If defense experts employ an evi- ry? Is it short term or long term? What objectivescience class mattered, but also dence-based approach such that there is strong evidence can be verified? How do you define it? consensus-based scientific evidence and medical How do other sciences become engaged in thatwhy psychology, studying, and evidence that informs an opinion, then the process, e.g., neuropsychology and neuropsy- experts are bulletproof in terms of cross-exam- chiatry? What does the literature say about thehard work does, too. ination because good science is tough to attack. various topics that arise in the context of that If it’s explained properly to a jury, and simulta- type of litigation? Today’s session takes at- Richard Finn neously to the judge, they will come to un-tendees through the issues that derstand how science works and how science “If you know how to employ the logic of creates the foundation for the medical opin- the scientific method, then that will also preparearise in any litigation involving causation claims, ions. Then, there should be no doubt about the you for all other elements of your case,” says validity of those opinions. Finn. “The methodology that one employs withwhich can include environmental exposure cases, regards to challenging causation carries across all A toxicologist will explain the scientific spectrums of our profession. Every bodily injurytraumatic brain injury cases, and any bodily inju- method and how science makes the determi- case is going to involve a causation issue.” nation of causation, and an expert will addressry cases where a dispute about causation exists. medical products and devices and their associated To learn more and hone your skills, be causation issues. Additionally, key resources will sure to head to A1 (sponsored by Stuart, Maue,In many of these cases, there is a growing Mitchell & James) today at 10:25am. Kmisuse and abuse of science and medicine byexperts who are retained by the plaintiff’s barto advance their cases—in particular, to increasethe amount of damages that may be recovered.It’s troubling because it does a disservice to theprofession and to the disciplines and should notbe used as leverage. That leverage exists becauseit’s often difficult for a jury to understand theapplicable science and medicine.The High Impact of Medical Cannabison Insurance and Associated RiskBy Bevrlee J. LipsW eed, ganja, or kush, no mat- billion-dollar industry with a variety of insurance ferent in each jurisdiction. Despite the size of the ter what slang term you use, needs and risks. Today, presenters Michael Ab- industry, the availability of legitimate insurance marijuana conjures up a host erle, Greg Cook, Tim O’Hern, and Dean Rocco coverage is handled by a very limited pool of of thoughts and knowing bring attendees up to date in their session, “The carriers.”smirks just at its mention. But Risk with Cannabis – A ‘Joint’ Presentation with an Industry Insider, Underwriter, and Defense The majority of states have legalized orwhen you take a look at the Counsel.” decriminalized medical cannabis, and some have legalized adult use or recreational cannabis.serious side of the substance— “The cannabis industry has a lot of the same The federal government has taken a hands-off risks as traditional agriculture, manufacturing, approach to cannabis regulation, which hasits medical use—you enter a and retail industries, but there also are several presented more nuanced risks for cannabis unique risks it presents,” says O’Hern, chief businesses. This has further been amplified byfast-moving new world that the operating officer and general counsel for Nature’s uncertainty with the new Trump administra- Grace and Wellness. “Terms of coverage and tion. While the president’s previous commentsinsurance industry is challenged increased regulatory concerns make insuring a cannabis business different from others and dif- Cannabis, continued on page 10 Eto keep up with. Twenty-eight states and Tim O’HernWashington, D.C., have passedlaws allowing medical use of marijuana. As aresult, the cannabis industry has become a multi-GAYLORD OPRYLAND RESORT & CONV E NTION CE NTE R | NAS HV ILLE , TN | WW W. T H E C L M . ORG

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CLM DAILY NEWS FRIDAY, MARCH 31, 2017 // PAGE 7GAYLORD OPRYLAND RESORT & CONV E NTION CE NTE R | NAS HV ILLE , TN | WW W. T H E C L M . ORG

PAGE 8 // FRIDAY, MARCH 31, 2017 CLM DAILY NEWSPromising Claims TechnologiesHover on the HorizonBy Eric Gilkey Gareth Hedges, chief claims officer and general ‘maturing technology,’ which is really a focus onC laims is one area of insurance that has counsel for the Redwoods Group; Melissa Hill, data and analytics,” says Furtado. “Several of our the most potential to transform our senior vice president and chief resolution officer speakers will discuss where they have had suc- highly connected world, so it’s import- for Hamilton Insurance Group; and Dan Moore, cesses and where they have had challenges imple- ant to stay on top of technology trends senior vice president, claims services, for QBE. menting and utilizing data analytics throughoutthat affect it. You can do just that during this She will pick up the thread of yesterday’s opening the claims process. Then we’ll go on to the ‘funmorning’s premier panel discussion, which takes session discussion on data science first, then move technology,’ which we call the four power play-place immediately following breakfast. on to newer technologies. ers: Internet of Things (IoT), drones, driverless vehicles, and payment technology. Lastly, we’ll “We’re going to be talking about changes “We’ll begin by going over what I callhappening within claims today as well as thosecoming up over the next three to five years thatwill have implications in every line of businessthat is handled within claims,” says KarenFurtado, a partner at Strategy Meets Action, atechnology consulting firm specializing in digitaltransformation and InsurTech. “The session’sfocus will be how these technologies impact theexternal customer experience and the internaladjuster experience.” Furtado will moderate the panel of dis-tinguished claims executives, which consists ofGAYLORD OPRYLAND RESORT & CONV E NTION CE NTE R | NAS HV ILLE , TN | WW W. T H E C L M . ORG

CLM DAILY NEWS FRIDAY, MARCH 31, 2017 // PAGE 9discuss wearables, gamification, artificial intelli- E Executives, continued from page 1 Robinson posed his own question aboutgence, semantic technology, and blockchain.” the preparedness of claims staff and potential machine’s results to the claims examiners, the areas of training to focus on over the next Furtado says the goal is to have a conver- software proved more accurate. The company few years as data science takes hold.sation about how these emerging and maturing plans to use the software when routing claims.technologies impact the claims process and where “The question really is, ‘Are claimsthe opportunities are for insurers to really rethink “The problem with that is when claimants specialists appropriately skilled to work in athe engagement and process models being used hear that statement—which is fundamentally new world of vastly more data and insights?’today. She also plans on addressing technology true, by the way—they will think, ‘They are Do they have the critical thinking skills tothat may be too soon for the spotlight. going to use a robot to handle my claim,’” said be able to bring together their expertise and North. “We love technology when it comes the ability to consolidate all of this informa- “I would say one area that may be a bit to getting things like airline boarding passes, tion? It’s going to be a unique and interestingfurther off but is being talked about a lot right but that scenario doesn’t begin with someone challenge.”now is blockchain,” says Furtado. “We’re not de- getting hurt or a house burning down. In ourploying contracts on blockchain, but there’s a fair business, those small, easy to reserve claims The panel wrapped up the openingnumber of insurers that are incubating change start with somebody having a problem. There session by doling out some career advice, es-and trying to understand what the blockchain is is an empathy and advocacy part of what we pecially geared to those newer professionalsgoing to look like for them.” do for a living that we can’t forget about.” in attendance. Furtado expects a robust discussion, and she Hudson sought some middle ground, “I tell my kids that context is worthhopes attendees leave having learned at least one thing. saying that the increased efficiency gained 50 IQ points,” says Robinson. “If you can through automation means that claims profes- understand the broader context of what “I really hope attendees leave understanding the sionals can have more opportunity to create a you do, it’s going to be incredibly helpfultrue impact that technology can have to drastically better experience. in discussions with colleagues, clients, andimprove both operational efficiency and customer ex- executives.”perience,” says Furtado.“These aren’t hopes or pipe “It’s not that we auto reserve and then theredreams, and it’s not just small incremental change. is nothing else to be done,” said Hudson. “There Taketa offered his own four points forThe panelists have all done a superb job refining their is a tremendous number of things that I think all a rewarding career. “Be curious. Takes risks.operations to be efficient and effective, and they are too often claims professionals don’t have time to Act genuinely. Work hard. I have learned thatwilling to share their experiences.” do, and automation can assist in creating better I might not always be the smartest person in outcomes in that way.” the room, but I’m always going to be one of To learn more, head to E1 at 8:30am, right the hardest working. That still matters.” Kafter breakfast. K WE BELIEVE IN DOING DEPOSITIONS ONE WAY. THE RIGHT WAY. With 40+ locations across the country and complete international coverage, we’llget your deposition right anywhere from Cairo, Egypt, to Cairo, Georgia. For you, it’s less stress. And a better approach to deposition management means abetter outcome for your case. Come see how we do depositions differently. [email protected] | www.esquiresolutions.com | 800.211.DEPOGAYLORD OPRYLAND RESORT & CONV E NTION CE NTE R | NAS HV ILLE , TN | WW W. T H E C L M . ORG

PAGE 10 // FRIDAY, MARCH 31, 2017 CLM DAILY NEWSStaying on Top of EmploymentManagement and Trends to KeepEveryone Focused on the JobBy Bevrlee J. Lips best practices for challenging claims involving they get too far down the road and legal feesI n 2016, there were nearly 100,000 indi- several hot-button issues, including continuing are involved, lawyers or risk managers often are vidual charges filed with the U.S. Equal developments in whistleblower protection, social unable to settle or resolve the claim because of the Employment Opportunity Commission for media use, transgender discrimination, harassment exorbitant legal fees. This is a great reason why it the top 10 types of discrimination. From and retaliation, supervisor liability in employment is important to seek continual education on theserace, sex, religion, retaliation, and litigation, and strategies and techniques to resolve types of claims.more, these charges can be very cases at the mediation stage.costly for employers, and they Second, with employment claims, people arerepresent just some of the claims With internet and social media use, all the taken away from their jobs. They have to engagemade by employees each year. issues that have been around for 20 to 30 years in the expense of litigation, the discovery process, now take a different form. Even if you think that interviews, and depositions instead of focusing on If you have one employee, you’ve got a pretty good grip on your workplace, getting their work done. When there is a currentyou have a potential claim. To once you add in social media, it changes every- employee who files a lawsuit, it is all the moreget ahead of them, be sure to thing, so getting educated and staying informed is disruptive to the workplace.attend today’s session, “Effective Stefani Schwartz something everyone needs to do.Management of Employment “Annually looking at your policies andPractices Litigation (EPL) Claims,” where the The important takeaways for the session are looking at your handbook to make sure it’s up todiscussion will focus on the trends and latest issues twofold. First, the interesting part about employ- date and revising it accordingly is a necessary evil,”facing employers and examine how best to mini- ment law that many people don’t know, unless says Schwartz. “Educating employees as well asmize exposure and limit the risks in the workplace. they’re practicing law in this area, is that employ- supervisors concerning the company’s policies and ment law involves fee shifting. If plaintiffs prevail procedures as well as the law also will help curtail “What happens with these employment in a court of law, then they are entitled to have litigation in the future.”claims is that the employer ends up focusing on the their lawyer fees paid, unlike in a straight breachclaims and litigation,” says session presenter Stefani of contract claim in which the contract might out- To avoid costly and unnecessary mistakesSchwartz, of Schwartz, Simon, Edelstein, & Celso. line that each person is responsible for their own and get up to date on pre- and post-lawsuit“We’re hoping to help stop that in its tracks so attorney’s fees. claims handling and evaluation, insurance cover-that all can move forward and the employee and age issues, available defenses, and recent develop-employer can have a healthy working relationship.” In employment litigation, the defense may ments in the law, be sure to make your way today be responsible for the plaintiff’s legal fees, which to B4 (sponsored by Engles, Ketcham, Olson & Schwartz is joined by fellow presenters makes such employment claims very costly. When Keith) at 10:25am. KCrystal Ivy and Michael Saucier, who will addressE Cannabis, continued from page 4 Another developing issue in workplaces Executive Group Publisher that currently operate in legal medical marijuana Harry Rosenthalregarding medical marijuana have been positive, states and legal adult-use recreational states isfederal enforcement is in question, which makes how to determine if someone’s legal and autho- Publisherthe topic very timely. rized cannabis use caused an injury either to Bryan Pifer themselves or to a third person. “Programs are different in each state; some Daily News Editorsare highly regulated, and some are pretty loose,” Quinnipiac University found that, in the Eric Gilkeysays O’Hern. “Some of the new medical marijua- U.S., 89 percent of respondents support medicalna states are highly regulated, and the product is marijuana use, and a Gallup study found public Bevrlee J. Lipstracked through a state traceability system from support for legalizing marijuana use at 60 per-seed to sale. States like that include Illinois, Mary- cent. If you’re not currently in a state that has a Art Directorland, and New York. New states that are coming legal cannabis program, clearly the likelihood of Jason T. Williamson, like Arkansas, Ohio, and Pennsylvania, have it coming soon is very high, making now a goodadopted similar programs that have a very robust time to get up to speed on the issues surrounding Published byregulatory framework.” these programs. CLM There seems to be something new in the in- There will be handouts and resources for www.TheCLM.orgdustry that comes up every month. For example, attendees to stay abreast of the issues relatedthere are several jurisdictions now where judges to this fast-moving topic. While the session willhave ordered workers’ compensation carriers to not be held at 4:20 p.m., it will take place in A2pay for injured workers’ medical cannabis as the (sponsored by Transcend Services) at 10:25am.result of their workplace injuries. Be sure to attend and, sorry, no free samples. KGAYLORD OPRYLAND RESORT & CONV E NTION CE NTE R | NAS HV ILLE , TN | WW W. T H E C L M . ORG

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