Business Insurance | RIMS 2017 | Monday, April 24

Q&A: MARTIN SOUTH Risk management careers anything but routine, students learn The president of Marsh L.L.C.’s BY GLORIA GONZALEZ U.S. and Canada Division talks about Lesson No. 1: There is no typical Rick Graham, right, director of workers compensation for SEPTA, the brokerage’s day in the life of a risk manager. addresses RIMS student tour participants Saturday. plans for growth in the U.S., how Students from schools includ- tor of workers compensation for day will bring, he said. Case in companies are ing Appalachian State Univer- the Philadelphia-based regional point: Right before last year’sresponding to evolving cyber risks and sity, Mississippi State Universi- transportation system. Fourth of July holiday, the agen-the growing need for innovation in ty and the University of Northbusiness interruption coverage. Carolina-Charlotte heard that However, a risk manager often See STUDENTS page 14 message from the Southeastern doesn’t know what challenges a PAGE 6 Pennsylvania Transportation Authority’s risk managementReputation pitfalls and workers compensation teamtop risk concerns on Saturday.in social media age These students are entering BY ROB LENIHAN the field at just the right time, with the “best and the bright- Businesses around the world est” of the industry headingranked damage to their reputa- for retirement in the next fivetion or brand, magnified by social years and the profession gain-media, as their top risk manage- ing prominence within organiza-ment concern, according to Aon tions, said Rick Graham, direc-P.L.C.’s 2017 Global Risk Manage-ment Survey. Risk managers accept a revolutionary mission Rory Moloney, CEO of Aon BY GLORIA GONZALEZ ways to approach risk, new Nowell Seaman, RIMS presi-Global Risk Consulting, said the ways to think about risk, what dent and director of global riskspeed of social media technology It’s time to take risks — an can we do to add more value management for Potash Corp. ofamplifies any issues a company interesting, and perhaps unusu- to our organization, how can Saskatchewan Inc. “Sometimesmay be facing and spreads them al, message from an organiza- we do things differently,” said people can resist change or feelaround the world. tion of risk managers. they don’t have the support to effect change, but it does take “It’s just getting quicker and The theme of the Risk & Insur- energy to do things differently.”quicker,” he said. “I think the ance Management Society Inc.’sissue is that information is dis- 2017 conference in Philadelphia The conference will featuretributed so quickly now — inter- is “Risk Revolution.” 166 educational sessions chosennationally, across all demograph- from almost 850 submissions.ics — inviting comment and opin- “The theme is ‘disrupt theion from people as it goes.” status quo,’ and really what we See REVOLUTION page 14 mean by that is finding new Reputational events oftenarrive with little or no warning, GOLF TOURNAMENT MEDIA LIABILITY PHOTO GALLERYforcing organizations to respondquickly and effectively in real- Annual outing benefits News outlets face Snapshots from RIMStime, the report said, adding that Spencer Foundation scrutiny, uncertainty weekend eventsit’s important for companies tohave a comprehensive reputation PAGE 3 PAGE 4 PAGE 10risk control strategy in place to See RISKS page 15 Entire contents copyright by Business Insurance Holdings. All rights reserved.

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Sunny day greets golfers at Spencer/Gallagher tournament BY LOUISE ESOLA “We got the right day,” he said, Executives participate in the 26th annual Spencer/Gallagher Golf noting Sunday’s break in the rainy Tournament on Sunday. Proceeds from the event benefit the Spencer For some, the unofficial start forecast for Philadelphia during Educational Foundation Inc.of the Risk & Insurance Manage- the RIMS conference. “This is per-ment Society Inc.’s annual confer- fect. Better than last year.” third-party administrator TRIS- but an organizer estimated thatence and exhibition is a caravan TAR Insurance Group. $35,000 was raised.of golf carts and the trading in The tournament attracted 106of business attire for cleats and players broken up into 28 teams, “This is great company,” added And students weren’t the onlyvisors. according to organizers. Mr. Bos- Jason Flaxbeard, Denver-based winners Sunday. ton called the hilly green course executive managing director The 26th annual Spencer/Gal- “our Philadelphia home,” as the for captive management and Doug Thomson, Bob Rappoport,lagher Golf Tournament was ACE Club has hosted the RIMS consulting for Beecher Carlson David Ingram and Sean Pomeroyheld Sunday at the ACE Club in golf tournament three times. Holdings Inc. won first place as a team. Sec-Lafayette Hill, Pennsylvania. At a ond in the team category werechilly tee time with the tempera- Shayne Garner, Salt Lake City- Fun and games aside, the pur- Joe Wieligman, Keith Yager, Benture in the high 40s, tournament based vice president and partner pose of the event is to raise money Wolfe and Christopher Hess.co-chairman Timothy Boston, with insurance software firm for the Spencer Educational Foun- Placing third were Ms. Lesko, Mr.Baton Rouge, Louisiana-based EBIX Inc.’s risk management dation Inc., which provides schol- Flaxbeard, Nicholas Ditmassi anddirector of marketing for the division, said the event is the per- arships to college students study- Mr. Garner.mid-South region for Arthur J. fect kickoff for RIMS. “It’s a good ing risk management and insur-Gallagher & Co., said he was glad opportunity to network and meet ance. The exact amount of money The longest women’s drive wasfor sunny skies despite the need some people in your industry in a raised in the tournament was not made by Terri Minik. The longestfor jackets. Last year, during casual setting,” he said. available by Sunday afternoon, men’s drive was made by Marcusthe RIMS conference in usual- Henthorn.ly sunny San Diego, the annual Others shared his enthusiasm.tournament was rained out for “I love it … I’m already havingthe first time in its history. a good time,” said Karen Lesko, Golden, Colorado-based director of sales and client solutions forWorldwide political developments reshaping business exposures BY GAVIN SOUTER DAVID HUME KENNERLY/GETTYIMAGES Gen. Michael Hayden, a former CIA ized — has been pushed out to director, says complicated ‘tectonic the edge, he said. Five “tectonic shifts” in global opening of the Risk & Insurance shifts’ are shaping global risks.affairs are changing the nature Management Society Inc.’s annu- How empowered groups andof geopolitics and the risks that al conference in Philadelphia. The first shift is the nature of individuals will act will alsobusinesses face, according to power and the changing power of change, Gen. Hayden said.Gen. Michael Hayden, the former states. Nation states play a lessdirector of the National Securi- dominant role in global affairs “Most of the things that couldty Agency and a principal at The and, with the rise of terrorism, go bump tonight are probably notChertoff Group L.L.C., a global “substate actors and even individ- going to be the result of a malevo-advisory firm. uals are empowered,” said Gen. lent state power,” he said. Hayden, who is a retired four-star “I’ve seen a more dangerous U.S. Air Force general. And cyber attacks will becomeworld; I’ve never seen it more a much more significant globalcomplicated,” he said at a meet- The growth of technology has threat, Gen. Hayden said.ing sponsored by Lockton Cos. empowered individuals, andL.L.C. on Sunday prior to the power — which was once central- “We’ve become accustomed to the threat of terrorism; we’ve See LOCKTON page 17 BUSINESS INSURANCE RIMS 2017 3

Media liability in a spin: ‘Fake news,’mistrust put pressure on news outlets BY GLORIA GONZALEZ duction of nontraditional media warranted or not, it is causing a Resource Center in New York, companies and the accessibili- shift, particularly when dealing said he did not believe Mr. President Donald Trump has ty through social media for any with juries. This whole phenom- Trump’s accusations — such asaccused the mainstream media organization to provide content enon of fake news, which used to his numerous Twitter posts refer-of being the enemy of the peo- without reaching the same stan- be satire, but as we saw in the ring to the “fake news media” —ple, but the media’s own enemy dards as some of the larger, tradi- election, people are unable to dis- has led to more libel litigation,remains defamation lawsuits, tional or more established media cern what is fake news and what “but to have a more and morewith social media complicating companies.” is real, it’s really undercutting polarized situation with Trumpthe equation. the credibility of what real jour- supporters who think the media Americans’ trust and confi- nalists do, which I see as a threat is terrible is not a healthy situa- Mr. Trump’s negative view of dence in the mass media “to to the First Amendment and the tion and could potentially lead tothe media is shared by a sizable report the news fully, accurate- media’s role as the Fourth Estate more lawsuits.”segment of the U.S. population, ly and fairly” has dropped to its in the government.”with their distrust being com- lowest level in Gallup Inc. polling However, media liability insur-pounded by concerns over “fake history, with 32% saying they The distrust breaks down ers, brokers and attorneys arenews.” These developments may have a great deal or fair amount largely along partisan lines, with concerned about the effect of thehave made media companies of trust in the media, according to Republican trust and confidence anti-media rhetoric.more vulnerable to litigation, a September 2016 report, a drop eroding to 14% from 32% in theexperts say, raising concerns over of 8 percentage points from the previous year, partly due to the “I’ve seen defamation claimsincreased liability exposures. previous year. belief that Mr. Trump received booming lately and attacks on the unfair or negative media atten- media as well,” said Lee Brenner, “It’s a really interesting time for “There is a growing group tion. Democrats and indepen- Los Angeles-based chair of thenews media, in particular having that has an inherent distrust of dents generally have more trust media and entertainment prac-to do with the political environ- the media,” said Emily Caron, and confidence in the media, with tice group of law firm Kelley Dryement and a focus on whether vice president of media liability their levels declining only 3 to 4 & Warren L.L.P. “We have annews media organizations are as claims for the entertainment divi- percentage points. administration that has basicallytruthful as I think we have always sion for OneBeacon Insurance made no bones about the fact thatassumed,” said Shannon Groeber, Group Ltd. based in Overland George Freeman, execu- he has contempt for the press.”Philadelphia-based senior vice Park, Kansas. “Whether that is tive director of the Media Lawpresident for JLT Specialty USA. First Lady Melania Trump“They have been held to the high- has also been involved in dis-est standard of providing factual, putes with the press, winningaccurate and cross-referenced a financial settlement and aninformation for as long as the apology from one of Britain’sFirst Amendment has been pro- largest newspapers. She suedtective, and then all of a sudden Mail Media Inc. in New York inthey are under intense scrutiny. February for “false, salaciousThat also has to do with the intro- and highly offensive statements” made in an August 2016 story in“We have an administration the Daily Mail that repeated past allegations that the modelingthat has basically made no agency she worked for was also an escort service. The partiesbones about the fact that he settled the litigation in mid-April, with the media company paying ahas contempt for the press.” reported $2.9 million in damages and costs. Lee Brenner, Kelley, Drye & Warren But the biggest media liability case in recent years was Bollea v. Gawker, filed by Terry Gene Bol- lea, better known as profession- See MEDIA page 174 RIMS 2017 BUSINESS INSURANCE

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Martin South Martin South was named president of Marsh L.L.C.’s U.S. and Canada division last year. He has previously served as CEO of Marsh’s Asia-Pacific region, CEO of Marsh U.K. and Ireland, and CEO of Marsh Europe. He recently spoke with Business Insurance Editor Gavin Souter about the brokerage’s plans for the U.S. Edited excerpts follow. Cyber is clearly top of Q How does the insurance phies). Cyber is clearly top of the threat of cyber attacks and mind for clients as they market in the U.S. differ mind for clients as they think emerging technology, but if they from other markets that you’ve beyond privacy to all of the get hacked, they face sanctions. think beyond privacy worked in? ways that a cyber attack could It’s somewhat paradoxical, but to all of the ways that a affect a company’s reputation, it’s about proving that you have cyber attack could affect A I’ve been quite surprised their supply chain and their done everything you can to pro- a company’s reputation, in the U.S. how much more ability to do business. Anoth- tect yourself and then workingtheir supply chain and their personal relationships seem to er is transactional risk. There with the insurance marketplace ability to do business. matter, particularly with mid- are lots of mergers and acqui- to find the appropriate protec- market buyers. In lots of other sitions at the moment, and it’s tion, recognizing that insurers (countries), price is almost the now completely normal for still have deep concerns about key determinant — no matter the systemic nature of this risk. how you try and turn the con- insurance to be part of an M&A versation to risk and the value process. In terms of industry Another area that is an issue that insurance can add. It’s growth, we see the need and is around business interruption. interesting to me to see how opportunity for us to double The classic property damage BI long-term a lot of the relation- down in the construction space. policy was all very good when ships are between the risk man- And here in the U.S., health care there were vertically integrat- agers, between the executives is a huge part of the economy, ed companies, but in today’s in the brokerage firms and with and we see opportunities in the hyperconnected business envi- the carriers. It’s quite a differ- whole health care value chain. ronment we are not convinced ent experience. In geographic regions, we think that the business interruption we have opportunities in Flori- space has the right solutions Q What’s your plan for growth da and in the West. for 21st-century clients. Lots in the U.S.? of insurance touches on our Q What are some challenging ability to provide coverage — A Of all the places in the world, areas for your larger clients? physical damage, political risk, the U.S. feels like the place some supply chain cover, cyber, you want to be right now. The A As I said, cyber is top of trade credit all play their role focus on infrastructure, poten- mind. They face not only — but they are sold in silos that tial reform around taxation, the insurance companies are the resilience of the economy comfortable with and they are here and the relative concerns not really coming together with in other countries about geopo- a thoughtful business interrup- litical risk — the U.S. feels like tion solution. there’s the right sort of econom- ic pattern. But, of course, it’s a We are certainly working mature market and you need to hard to understand what we be very focused. need to do better for our clients in the BI space. There are three buckets that we are looking at in terms of And now is the time to really (risk, industries and geogra- innovate as there’s more capi- tal than ever in the insurance industry.6 RIMS 2017 BUSINESS INSURANCE

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Meagan COLLEGE STUDENT SNAPSHOTStenger Meagan Stenger is a senior at Indiana State University in Terre Haute, where she is majoring in insurance and risk I am excited to learn the thought management. She is president of her Gamma Iota Sigma processes that everyday risk chapter, director of corporate sponsorships for State managers think through. I want Dance Marathon and a Gongaware scholar. She recently to learn what they see and what spoke with Business Insurance Reporter Joyce Famakinwa. they look for in their risk analysis. Edited excerpts follow. What are your post-college career plans or goals? I have accepted a position as an underwriting trainee at Liberty Mutual Insurance. I will be working in the Indianapolis office. I intend to obtain my associate in underwriting (designation), and I plan to complete the CPCU designation within two years. How did you become interested in risk management? I decided on an insurance and risk management major my senior year of high school. I wanted to be a business major but wanted something more unique and marketable than business administration. I quickly got involved in the insurance and risk management program at Indiana State University my freshman year and enjoyed what I was learning so far. I took my first insurance class, which was commercial property, and I was sold. I was so interested in all of the thought processes that go into analyzing and mitigating risks. From then on, I have fallen in love with my major! What do you hope to learn at RIMS 2017? I am excited to learn the thought processes that everyday risk managers think through. I want to learn what they see and what they look for in their risk analysis. What’s your favorite TV show or movie? I love the show “New Girl” if I am relaxing or in the mood for a laugh. If I am looking to learn something or be slightly more productive, I enjoy watching documentaries of all sorts. What’s your favorite book? My favorite book is “Not a Fan” by Kyle Idleman. It is a book about becoming a follower of Christ and what it means to believe in God. The author presents this book in a comical yet serious way, which makes for a quick read.8 RIMS 2017 BUSINESS INSURANCE

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HEARD ON THESTREET What are you LAURA LANGONE SUZANNE CRAMER KAYLA GINAKES hoping to get out Senior director, risk and insurance Marketing manager Risk financing program manager of this year’s PayPal Holdings Inc. Travelers Cos. Inc. Blue Cross and Blue ShieldRIMS conference? San Jose, California Hartford, Connecticut of Florida Inc. Jacksonville, Florida “Networking. More on cyber “Travelers is really keyed into the risk — I’m taking a cyber forum. revolution and disruption theme. We “I’m hoping to learn from others and Captives. And hybrid industries. went to great lengths to fit in with get an opportunity to share knowledge These are all big issues.” that, coming up with this ‘rise up to with other risk managers. It’s kind of risk’ complementary theme. We want a niche role within corporations.” our own clients, certainly, but also our colleagues from across the risk management space to learn all about what’s disrupting the industry.” KNOWLEDGE PURCHASING POWER EXPERIENCE ACCOUNTABILITY COLLABORATION TECHNOLOGY MARKET LEADERS INDEPENDENCE BUSINESS INSURANCE RIMS 2017 13

STUDENTS communicate internally. If you Rick Graham, left, director But the organization’s risk man- can pick up on that speak and agement and workers comp pro- Continued from page 1 start to mimic it, it helps a lot. No of workers compensation grams continually evolve, with matter what you’re doing, you SEPTA exploring using fundscy removed 120 relatively new Sil- have to get out from behind your for SEPTA, speaks from a catastrophic loss fund itverliner V passenger cars from desk and understand the opera- established in the 1980s to formservice after an employee noticed tions of your organization.” with Van Dang, right, a captive insurer to cover largethat the cars were leaning, lead- self-insured retentions, includinging to the discovery of major SEPTA also monitors and learns a graduate student in stop-loss coverage for its healthcracks on a stabilizer beam. lessons from the challenges insurance program. A captive encountered by other transporta- the general insurance could also be used to cover SEP- SEPTA negotiated an agree- tion systems, Mr. Graham said. In TA’s cyber risk, including trainsment with Amtrak to rent equip- May 2015, an Amtrak Northeast and risk management operating on signal systems vul-ment to try to provide normal regional train leaving Philadel- nerable to manipulation and aservice after the holiday week- phia’s 30th street station derailed, program at the British new payment card system.end, but the federal transporta- killing eight people and injuringtion agency required certificate more than 200 — an accident Columbia Institute of “We’re nervous about the cyberof insurances — which SEPTA experts say could have been pre- policy,” he said. “Is it really goingdid not have because it was vented had Amtrak fully installed Technology in Canada. to respond to what we think weself-insured for railroad liabil- positive train control technology bought? If you have a captive andity since it has state sovereign that would have slowed the train, which was operating above 100 you structure it the right way, youimmunity protection, barring miles per hour at a curve marked can use it to respond to a loss.”liability for some incidents and with a 50-mph speed limit.capping losses for others, he said. Students said they came awayThat forced the agency to seek SEPTA had a safety event the with valuable information about$290 million in limits from the following day to discuss the the profession and critical insur-London and Bermuda markets. derailment and will fully imple- ance topics. Arshi Bassi, a risk ment positive train control in its management student at the Brit- “This is a day in the life of a risk own system by the end of the year. ish Columbia Institute of Tech-manager,” he said. “Risk is risk. nology in Surrey, British Colum-The challenge is learning your The transportation system bia, was particularly impressedoperations and then learning also has a transitional light-du- with SEPTA’s safety culture.how the operations and finance ty program that enables injured workers to return to work almost “They are a true role model,” immediately, as well as a pro- she said. gram that reserves alternate jobs for employees who cannot return to their previous positions. “We don’t believe in kicking people to the curb just because they had an injury at work,” Mr. Graham said. REVOLUTION risk management. speech. He and his wife, Sarah, efforts at this year’s conference “Cyber has many angles,” Mr. started the Global Soap Project, will focus on local charity Alex’s Continued from page 1 which recycles used bars of soaps Lemonade Stand Foundation for Seaman said. “While there’s a from hotels and reprocesses and Childhood Cancer, which is devot- One of the new elements of the broad range of content in the distributes them to vulnerable ed to raising money for researchconference program that RIMS is cyber category, I think the main populations, in 2009. and raising awareness of child-particularly excited about is the thing is to provide the best pro- hood cancer, with an estimatedexecutive leadership track, which fessional information that the Allison Massari, an internation- 250,000 new cases affecting chil-is designed for senior profession- attendees can take home and al speaker and executive coach, dren under the age of 20 everyals tasked with driving strategy actually implement and help will deliver a luncheon keynote year. RIMS members will bewithin their organizations, Mr. them to manage and improve speech on Monday detailing her completing projects on TuesdaySeaman said. One of these, a their risk in that area. Cyber in experience surviving two near-fa- for the organization’s SuperSibssession on how to manage inter- the current environment is some- tal car accidents that left her with program, which supports siblingsnational strategic planning and thing that’s common to almost second- and third-degree burns of children with cancer who oftenenterprise risk management, every type of organization, so over more than half her body and contend with fear, anxiety, grief,takes place on Tuesday morning. there is a huge interest, and a closed-head brain injury. jealousy and other emotions. there’s always something new on “Globally, there is a real engage- the cyber security front.” Five-time Primetime Emmy The third annual Spencer 5Kment in emerging economies Award-winner Michael J. Fox, FunRun presented by Sedgwickabout the importance of risk man- Conference keynote addresses star of the television shows “Fam- Claims Management Servicesagement as an international busi- will expand on the theme of dis- ily Ties” and “Spin City” and Inc. will also take place on Tues-ness practice, a discipline that is rupting the status quo. advocate for Parkinson’s disease day in Fairmount Park to raiseimportant to success,” he said. research and awareness, will dis- money for the Spencer Educa- Derreck Kayongo, CEO of the cuss his struggles with the disease tional Foundation, with a goal The RIMS conference will National Center for Civil and and the life lessons he has learned of raising $100,000 to benefit thebe offering many other tracks, Human Rights Inc. and founder during the closing keynote ses- foundation’s scholarship andincluding one focusing on cyber of the Atlanta-based Global Soap sion on Wednesday afternoon. grant programs. Project, both in Atlanta, will deliv- er Monday’s opening keynote RIMS community service14 RIMS 2017 BUSINESS INSURANCE

RISKS No. 9, Aon said, and is the top “have evolved from stealing per- respondents predicted it to be concern among North American sonal information and credit cards the No. 10 issue globally, No. 2 for Continued from page 1 businesses, where the frequen- to staging coordinated attacks on the technology industry and No. cy of cyber breaches is increas- critical infrastructures.” 3 for the telecommunications andpreserve the consumer’s trust. ing and incident response plans broadcasting industries. Conducted in the fourth quar- have become more complex due The survey also asked partici- to regulation and mandatory dis- pants to indicate what their top New technologies, such aster of 2016, the biannual survey closure obligations. concerns might be by 2020, and drones, driverless cars andpolled nearly 2,000 respondents an economic slowdown or slow advanced robotics have increasedat public and private companies The high-profile attacks on recovery made it to the No. 1 awareness of the impact of inno-worldwide. domain registration services spot, followed by increasing com- vation among businesses. provider Dyn Inc. and email petition and failure to innovate or Other top concerns included leaks related to the Democratic meet customer needs. Risk management departmenteconomic slowdown, increasing National Committee “inevitably” staffing levels have remainedcompetition and regulatory or elevated cyber risk to the fifth Disruptive technologies and static, with 75% of respondentslegislative changes, the survey position, the report said. innovation are an emerging risk saying that they maintain onefound. that participants ranked at No. to five employees. Respondents Cyber crimes, the report said, 20 this year. In 2020, Aon said the also indicated that they feel risk “The majority of the top risks management is still undervaluedidentified in the survey are noth- within their organizations.ing new to risk managers,” thereport said. “However, a closer The survey said that captiveexamination has revealed many insurers continue to be a popu-new driving factors that are now lar way for clients to finance risktransforming the traditional and that there is considerablerisks, adding new urgency and interest in forming new captivecomplexity to old challenges.” or protected cell companies in the next five years, especially in Cyber crime made a big leap North America, Asia-Pacific andto the No. 5 spot globally from the Middle East. Visit booth #1033 to learn more In Risk Management, Ignorance Isn’t Bliss. You need an integrated approach to risk management, and you need theintelligence and insights to take action at the speed of risk. riskonnect.comEnterprise Risk Management | RMIS | Healthcare | Audit Management | Business Continuity Management Vendor Management | Compliance and Regulatory Management | Health and Safety Management BUSINESS INSURANCE RIMS 2017 15

WORKFORCES WORK BETTER. JOIN THE BUSINESS INSURANCE DIVERSITY & INCLUSION INSTITUTE TODAY TO ACCESS THESE BENEFITS AND MORE THROUGHOUT THE YEAR:COMMUNITY / ROUNDTABLES / RESEARCH / NEWSLETTER / LIVE CONFERENCE SAVE THE DATE: SEPTEMBER 18-19, 2017 / Westin Michigan Avenue / Chicago 2ND Annual Diversity & Inclusion Institute Live Conference“MAXIMIZE YOUR BOTTOM LINE: HOW INCLUSIVE CULTURES PAY OFF”CHANGE BROUGHT BUSINESS INSURANCE AND OUR TO YOU BY: PARTNER COMPANY BOARD MEMBERS WELCOME THESE RISK MANAGEMENT EXECUTIVES MEMBERS TO OUR ADVISORY BOARD: ADVOCATES Carol Arendall, Vice President, Risk Management, US Foods Connie Bartels, Senior Director, Risk Management, United Technologies Corp. Leslie Lamb, Director, Global Risk Management, Cisco Systems Judith Meszaros Kirkpatrick, Senior Director, Risk & Insurance, TIAA-CREF Loren Nickel, Director, Business Risk and Insurance, Google Inc. Audrey Rampinelli, Vice President, Risk Management, Loews Corp. Kendra Schropp, Director of Risk Management and Safety, On the Border Mexican Grill & Cantina Carolyn Snow, Director, Risk Management, Humana Inc. David Stills, Vice President, Global Risk Management, Wal-Mart BE PART OF THE CHANGE. DIVERSITY + INCLUSION INSTITUTEMEMBERSHIP & ADVERTISING OPPORTUNITIES: Jeremy Campbell / [email protected] / 513.737.4963 SPEAKING OPPORTUNITIES: Joanne Wojcik / [email protected] / 312.967.1606 VISIT: www.diversityinclusioninstitute.com

LOCKTON nuclear power in a few years, Gen. MEDIA The Gawker case has not Hayden said. altered pricing or demand for Continued from page 3 Continued from page 4 media liability coverage, but it The fourth shift is the rise of may have triggered requestsonly begun to consider the threat China and how the country will be al wrestler Hulk Hogan, who for additional informationin the cyber domain,” he said, embraced as a global power. sued New York-based Gawker from underwriters about hownoting that North Korea’s alleged Media L.L.C. in December 2012 content is cleared and howcyber attack on Sony Corp. marked “These guys are not our enemy, for invasion of privacy over media organizations evaluatea shift in global affairs as a foreign and there’s no good reason for the media outlet’s publication the reliability of their sourcespower acted to coerce and punish them to be our enemy,” he said. of a sex tape. The $140 million and corroborate the informa-a U.S. company. jury award in favor of Mr. Bol- tion they receive, said David China has seen remarkable lea rocked the media world. Finz, New York-based media The second shift is that things growth and an economic and social Although Gawker founder product leader, senior vicethat were thought permanent are transformation over the past sev- Nick Denton initially vowed president and client adviserproving not to be, Gen. Hayden eral decades, but the country faces an appeal, the case was later with the Marsh L.L.C. E&Osaid. challenges going forward, he said. settled for $31 million after Center of Excellence. The one-child policy that had been Gawker filed for Chapter 11 In particular, the world order in place will create a demograph- bankruptcy in June 2016. But the heightened expo-established following World War ic problem in terms of providing sure for media companies dueI and World War II is melting, social benefits for an aging popula- The Gawker case highlights to the political rhetoric couldincluding the U.S.-dominated tion, the country is facing environ- the importance of engaging eventually affect pricing, Ms.financial system and borders mental problems, and there is still attorneys when there are Groeber said.established in Europe and the Mid- a large disparity between rich and questions about the legalitydle East. poor in China, Gen. Hayden said. of publishing information — “I do think the political envi- even if the answer isn’t always ronment, as well as the evolu- Iraq and Syria have changed per- One direction that China could go clear-cut, according to experts. tion of cyber risk that we’remanently, and changes in regime in to shift focus away from internal experiencing right now, as wellwill not return the countries to pre- problems is to encourage national- “Reasonable lawyers who as some open cases that mayvious norms, he said. ism and further encroach on inter- practice in this area don’t impact case law going forward national boundaries in the South even agree among themselves and uncertainty around how The third shift is nuclear prolifer- China Sea, he said. whether or not it was appro- that might change, will impactation, with regimes such as North priate to publish the video,” rates over the next six to 18Korea developing nuclear weap- The fifth shift is the U.S. and Mr. Brenner said. “The First months,” she said. “Thoseons, Gen. Hayden said. what role it will embrace for itself. Amendment protects matters companies that have experi- President Donald Trump seems of public concern, but there’s enced a really favorable rate “There’s a whole bunch of states suspicious of the outside world and less rigorous First Amend- environment should poten-out there that are brutal, ambi- willing to beat it back, but many ment protection for purely tially consider budgeting fortious and nuclear,” he said. Rus- of his advisers represent the tra- private matters. Sometimes increases.”sia is also adding to its nuclear ditional post-World War II con- you don’t publish. You have toarsenal, which will mean that the sensus view of geopolitics and the make a choice.” For the full story, please seeU.S. will spend more on nuclear U.S. dominant position the world, the upcoming May issue ofarms; Pakistan is already a nucle- so it is still unclear which direction Business Insurance.ar power; and Iran will become a he will move the country in, Gen. Hayden said.Marketplace EDUCATION www.businessinsurance.com Risk management executives consider Business Insurance the #1 most credible brand.* BE A PART OF THE CONVERSATION ADVERTISE: [email protected] | 312.757.4580 SUBSCRIBE: businessinsurance.com/membership | 312.300.4127 ATTEND: businessinsurance.com/events *Signet Media Preference Study 2015 BUSINESS INSURANCE RIMS 2017 17

AROUND THE HALL CEO Adam Potter RIMS COVERAGE ONLINE PUBLISHER Business Insurance is delivering online Peter Oxner daily news reports from the Risk & Insurance Management Society Inc. (Chicago) annual conference in Philadelphia. [email protected] www.businessinsurance.com EDITOR18 RIMS 2017 BUSINESS INSURANCE Gavin Souter (Chicago) [email protected] DEPUTY EDITOR Gloria Gonzalez (Washington) [email protected] MANAGING EDITOR Sheena Harrison (Chicago) [email protected] SENIOR REPORTER Judy Greenwald (San Jose) [email protected] REPORTER Kristen Beckman (Denver) [email protected] REPORTER Louise Esola (San Diego) [email protected] REPORTER Joyce Famakinwa (Chicago) [email protected] REPORTER Rob Lenihan (New York) [email protected] COPY CHIEF Katherine Downing (Chicago) [email protected] ART DIRECTOR Jeremy Werling (Cincinnati) [email protected] DIRECTOR OF RESEARCH, PLANNING AND INSIGHTS Andy Toh (Chicago) [email protected] MAJOR ACCOUNTS DIRECTOR - MIDWEST & WESTERN U.S. Keith Kenner (Chicago) [email protected] MAJOR ACCOUNTS DIRECTOR - NORTHEASTERN U.S. & INTERNATIONAL Ron Kolgraf (Boston) [email protected] MAJOR ACCOUNTS DIRECTOR - MID-ATLANTIC & SOUTHERN U.S. Mark Krawiec (New York) [email protected] HEAD OF SALES - EVENTS & WORKERS COMPENSATION MAGAZINE Jeremy Campbell (Cincinnati) [email protected] HEAD OF EVENT PROGRAMMING Joanne Wojcik (Denver) [email protected] DIGITAL OPERATIONS MANAGER Kate Lichnerska (Chicago) [email protected] MARKETING MANAGER Katie Kett (Chicago) [email protected] REPRINT SALES MANAGER Lauren Melesio (New York) [email protected] SUBSCRIPTIONS & SINGLE COPY SALES [email protected] 312-300-4127 Copyright © 2017 by Business Insurance Holdings, 4100 S. Hospital Drive, Suite 209, Plantation, FL 33317. PHOTOS BY MICHAEL MARCOTTE

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