Business Insurance | RIMS 2018 | Wednesday, April 18

San Antonio | April 15-18 WEDNESDAY 20 18 SHOW DAILY APRIL 18, 2018 Q&A: LESLIE LAMB University students face off in risk management challenge Leslie Lamb, director of global BY JUDY GREENWALD risk and resiliency management at The University of Wiscon- The University of Wisconsin-Madison team that finished first in the Cisco Systems, sin-Madison prevailed over 25 Spencer-RIMS Risk Management Challenge included (from left) Taryn discusses the role other university teams to claim Otto, Cassandra Ring, Becky Cacioppo and Cameron Rowe. risk managers the Spencer-RIMS Risk Man- should play in agement Challenge’s top honor Nanyang Technological Univer- by the New York-based Spen-managing cyber risk, and Cisco’s new Monday during the Risk and sity in Singapore, which took cer Educational Foundation Inc.partnership with Apple, Aon and Allianz Insurance Management Society third place. The three teams by Andrew Bent, Sage’s Atlan-to offer enhanced cyber coverage. Inc.’s annual conference in San ta-based risk manager. PAGE 6 Antonio. “You will follow this as you move forward into your Mr. Bent said the Sage Foun-Company insiders The teams had competed careers. I saw a lot of passion dation helps support chari- present tricky based on solutions they devel- over the last day and a half.” ties to advance women, youngrisk control issues oped in a case study provided people and veterans. “All the by the Sage Foundation. The Andrew Bent, The Sage Group research shows” these charities BY JUDY GREENWALD foundation was established by “are underrepresented when it The Sage Group P.L.C., a New- had presented their final pre- comes to accessibility and avail- The two factors to think about castle upon Tyne, England- sentations earlier Monday. ability of funding,” Mr. Bentbefore developing a program to based information technology said, and funding them has theprotect against insider threats is and services firm, to build sus- The award was presented greatest impact.your risk appetite and risk toler- tainable, social, economic and during a reception sponsoredance, says an expert. entrepreneurial opportunities The RIMS-Spencer Risk Man- in local communities. agement Challenge, he said, pro- What are the firm’s criticalassets and “what is it you’re try- Members of the winning team See CHALLENGE page 12ing to protect?” asked Michael were Becky Cacioppo, TarynG. Gelles, managing director at Otto, Cassandra Ring, Camer-Deloitte L.L.P. in Arlington, Vir- on Rowe and academic adviserginia, speaking at a session on Carl Barlett.avoiding insider threats Tuesdayat the Risk & Insurance Manage- Eight university teams of thement Society’s annual conference original 26 were chosen to com-in San Antonio. pete at the RIMS conference, and three finalist teams were Risk tolerance “is an even selected after the first round ofmore difficult question,” said Mr. presentations on Sunday.Gelles. “That’s where we havethe biggest conversations.” In addition to the Univer- sity of Wisconsin-Madison, See THREATS page 12 they included 2017 winner St. Joseph’s University in Philadel- phia, which placed second; and AWARD WINNERS MANAGING BREXIT BEST OF SHOW RIMS honors Risk London market aims to See the top exhibitors Manager of the Year keep access to EU from this year’s show. PAGE 3 PAGE 4 PAGE 13 Entire contents copyright by Business Insurance Holdings. All rights reserved.

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CONFERENCE COVERAGE |WEDNESDAY,APRIL18 San Antonio | April 15-18 RIMS honorsrisk managementaward winners BY GAVIN SOUTER key evolving risk that the risk apologize, we tell the parents Named to the 2018 Risk Man- management team at Children’s is what we are going to do to make agement Honor Roll were Don- The Risk & Insurance Manage- addressing is cyber risk, she said. sure that it doesn’t happen to ald Aspinall Jr., vice presidentment Society Inc. recognized the another child.” of global risk management for2018 Risk Manager of the Year To tackle the risk, Children’s Comcast Corp. in Philadelphia,and Risk Management Honor used two tools it also uses in the The same principle should be who could not attend the awardsRoll winners at an awards break- patient safety process: collabora- used to manage cyber risks, Ms. breakfast; Jennifer Hills, directorfast Tuesday during the annual tion and transparency, Ms. Cady Cady said. of the office of risk managementconvention in San Antonio. said. services for King County, Wash- “Most people these days under- ington, in Seattle; and Joseph Rebecca F. Cady, vice president “Everything that I’ve done at stand that cyber events are going Meaney Jr., vice president ofand chief risk officer of the Chil- Children’s has been a result of to happen … so what really mat- global insurance and risk engi-dren’s National Medical Center collaboration,” meeting with ters is how you respond to the neering for AES Corp. in Wash-in Washington, received the Risk experts across the organization event. I really think that trans- ington.Manager of the Year award. and taking time to understand parency, while initially painful technology risks, she said. and definitely uncomfortable, The awards were presented by Accepting the award, Ms. Cady does way more to manage your Robert Cartwright Jr., the 2018said, “Winning an award like this The transparency element is a reputational risk than silence, RIMS president, and RIMS CEOis very much a team effort.” continuation of its patient safety alternative facts or delay,” she Mary Roth. approach, she said. “If we cause said. Like many risk managers, the preventable harm to a child, weRebecca Cady, vice president and chief risk officer for Children’s Winners include Risk Management Honor Roll winner Jennifer Hills, director ofNational Medical Center in Washington, accepts the RIMS Risk the office of risk management services for King County, Washington, in SeattleManager of the Year award Tuesday. At left is Robert Cartwright (second from left); Risk Manager of the Year Rebecca Cady, vice presidentJr., 2018 RIMS president, and at right is RIMS CEO Mary Roth. and chief risk officer for the Children’s National Medical Center in Washington (center); and Honor Roll winner Joseph Meaney Jr., vice president of global insurance and risk engineering for AES Corp. in Washington (second from right). BUSINESS INSURANCE RIMS 2018 3

San Antonio | April 15-18 CONFERENCE COVERAGE |WEDNESDAY,APRIL18Insurers, brokers adjust to stem Brexit losses BY GAVIN SOUTER REUTERS thing, and obviously that’s a duplication of effort and duplica- Britain’s decision to exit the Britain’s vote to leave the European Union last year divided opinion. tion of costs, etc.,” he said.European Union will change how Insurers in the London market are preparing for significant changes.London market insurers and bro- Lloyd’s transferred €130 millionkers service EU policyholders, the trading rights. The EU has um related to EU business, he from the Lloyd’s central fund,but many firms have established trading rights with over 75 coun- said. It has estimated that if it which supports the Lloyd’s mar-separate entities to ensure they tries in the world, and when you did nothing, it would be able to ket, to Lloyd’s Brussels, he said.will still be able to write the busi- leave a bloc like the EU you lose continue writing about one-thirdness, a Lloyd’s of London execu- access to those trading rights,” of that business — mainly rein- The company has the sametive said. he said during a session at the surance — on the same basis; it financial rating as Lloyd’s and Risk & Insurance Management would lose one-third of the busi- also is supported by Lloyd’s cen- The decision to leave the polit- Society Inc.’s 2018 convention in ness; and it would only be able tral fund, Mr. Vandendael said.ical and trade bloc, which was San Antonio. to write another third if it weremade in 2016 during Britain’s approached by a customer. The unit will begin operatingso-called Brexit referendum, In addition, Lloyd’s and other on Jan. 1, 2019. Lloyd’s Brus-means that companies in the U.K. reinsurers will lose the ben- To ensure that it will continue sels will delegate underwritingUnited Kingdom — including efit of the reinsurance covered to have access to EU business, authority to syndicates in Lon-insurers — will be leaving a agreement that the EU negoti- Lloyd’s established a subsidiary, don, or the syndicates can dele-market with a population of 517 ated with the United States to Lloyd’s Insurance Co. in Brus- gate underwriting authority to amillion and an economy with lower capital requirements of sels. Other London market insur- service company or Lloyd’s cov-more than $17 trillion in gross European reinsurers operating ers have also set up subsidiaries erholder in Europe, he said.domestic product, said Vincent in the U.S., Mr. Vandendael said. in various EU countries, Mr. Van-Vandendael, chief commercial dendael said. The policies will be issued byofficer at Lloyd’s. Lloyd’s writes €4 billion ($4.95 Lloyd’s Brussels — though they billion) in gross written premi- “Everybody had to do some- will be co-branded with the syn- “It’s a big consumer market dicate that is underwriting thethat the U.K. will be leaving risk — and the risk will be 100%… but these are just numbers. reinsured with the syndicateWhat’s really also important are underwriting the risk, Mr. Van- dendael said. “When you leave a bloc like Brokers will also have to adjust, the EU, you lose access to he said. If choosing to operate as a wholesale broker, they will those trading rights.” just have to establish or contin- ue relationships with retail bro- Vincent Vandendael, kers in the EU. But if they want Lloyd’s to operate as a retail broker and market their services to EU pol- icyholders, they will have to set up an operation somewhere in the single market.Reducing opioid use requires multipronged approach BY LOUISE ESOLA senior director for corporate risk Institute, in a session on solving opioid prescribing in workers management for United Parcel one of workers compensation’s comp — echoing the common The head of risk management Service Inc., told attendees at the biggest conundrums: how to help sentiment in comp circles andfor a company whose 454,000 Risk & Insurance Management injured workers manage their what Mr. Fenlon has noticed inworkers are tasked with deliver- Society Inc.’s annual conference pain without overprescribing or his own workforce.ing 2.5 million packages around in San Antonio on Tuesday. “It’s unnecessarily prescribing strongthe world each day, said solving a bunch of little things.” pain medications. The solution involves everyonethe opioid crisis will take a multi- from the injured worker to thetude of strategies. Mr. Fenlon was joined by John Mr. Ruser said numerous strat- legislation in their respective Ruser, president and CEO of the egies put in place nationwide and states, to the claims managers “There’s no silver bullet,” Cambridge, Massachusetts-based in individual states are workingMichael Fenlon, Atlanta-based Workers Compensation Research in concert to lower unnecessary See OPIOIDS page 134 RIMS 2018 BUSINESS INSURANCE

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San Antonio | April 15-18 CONFERENCE COVERAGE |WEDNESDAY,APRIL18 Leslie Lamb CISCO SYSTEMS Leslie Lamb is director of global risk and resiliency management at San Jose, California-based Cisco Systems Inc. She recently spoke with Business Insurance Editor Gavin Souter about the role of risk managers in managing cyber risk, and about Cisco’s recently announced partnership with Apple Inc., Aon P.L.C. and Allianz S.E., which offers enhanced cyber coverage in conjunction with secure technology components and a cyber resilience evaluation. Edited excerpts follow.There needs to be a strong Q How do you think the across the organization, no mat- with business units so that we connection between the perception of cyber ter what the reporting structure can better understand certain risk manager and the IT risk has changed over is, are what can really give an types of risk that we face, and the past few years? edge to how the risk is handled, there’s no better way to do thatdepartment, and an ongoing and I think the role of the risk than to get into it at the busi-strategy that systematically A If you look back five to manager is expanding beyond ness level. improves the risk posture 10 years, the perception just being an insurance buyer. has changed dramatically. In The role of the risk manager is To fully address cyber secu- of their company. today’s world, cyber risk is a to understand the risk, not nec- rity and resilience, you need a real and pervasive issue for essarily to become an IT expert combination of people, process companies and the community and technology. This idea of because of the interconnected or HR expert or an expert in addressing both the technical nature of the risk. These risks any other part of the business. and business challenge is at are more and more prevalent, In today’s world, the role of the heart of the recent partner- and really they are a daily the risk manager is to be a key ship we announced with Apple, occurrence now, which means business partner to incorporate Aon and Allianz. This solution that risk managers must better the perspectives from all those has the fingerprints of the risk understand the risks, including different areas. manager all over it. We feel it third-party risk, that their com- offers a holistic framework to pany faces. Q What are the key contributors decisively act on cyber risk, that risk managers can make giving organizations stream- There needs to be a strong on cyber security? lined access to the right tools to connection between the risk strengthen security and reduce manager and the IT department, A There are so many contribu- cyber risk. and an ongoing strategy that tions. As the first step, they systematically improves the need to understand and address Q Do you think the market risk posture of their company. cyber risk just as they do any is meeting the needs of other critical risk. It’s critical policyholders? Q Do you need to be an to ask the right questions of information technology the right people to uncover the A I think there’s a ways to go expert to be able to manage issues. For example, in my team still. I think managing cyber cyber risk effectively? we do what we call deep dives risk is difficult for a number of reasons related to talent, A The short answer to that technology and threat. Some is “no” — there’s so much examples include losses from more than IT. To effectively cyber threats are outpaced by manage cyber risk, companies key security investments, low really need to look at all the adoption rates of cyber insur- elements: quantifying the risk, ance, active adversaries, a financing it, mitigating it. Real- fragmented security technolo- ly, there’s no one-size-fits-all gy market and a security skills for any organization. It’s criti- shortage. For the market to cal that cyber insurance is dis- provide the right solutions, it cussed cross-functionally. The needs to look holistically at all connection points among people of these elements.6 RIMS 2018 BUSINESS INSURANCE

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CONFERENCE COVERAGE | WEDNESDAY, APRIL 18 SanAntonio|April15-18 BUSINESS INSURANCE RIMS 2018 9

San Antonio | April 15-18 CONFERENCE COVERAGE |WEDNESDAY,APRIL18 Product recall loss trends could spur rate hikes for 2018BY GLORIA GONZALEZ Product recall insured losses events, driven largely by tech- the number of catastrophic sors and distributors of ingre-for 2015 and 2016 were worse nology and social media dis- losses the insurance industry — dient-type products, because ofthan expected, which could lead tribution of recall information, especially the property market significant food contaminationto tightening capacity and high- said Bernie Steves, managing — sustained in 2017, according events and subsequent recalls iner rates in 2018, according to a director of Aon Risk Solutions’ to the report. This capacity tight- that category in 2016, accordingnew Aon Risk Solutions report. crisis management practice in ening will likely strain current to the report. Chicago. rates in the short term, which Although 2017 appears to be would be a shift from the recent “The phenomena that we’vemuch better than prior years “The risk seems to be increas- trend of flat to lower rates on seen over the last several yearsin the frequency or severity of ing across all product lines,” recall renewals. is that a lot of that risk is beinginsured recalls, the losses from Mr. Steves said. “That coincides pushed down the supply chain to2015 and 2016 have matured, with the growth of the market. Aon anticipates 2018 renewals suppliers who may have causedaccording to Aon’s Emerging It’s been available for roughly to be potentially facing increas- the problem,” Mr. Steves said.Trends in Product Recall and 30 years, but there has been an ing rates or flat renewals at best, “On the food side, for instance,Contamination Risk Manage- increasing acceptance of the according to the report. But there have been significantment report, published Wednes- coverage by companies making the insurance market is “fairly ingredient-type recalls, whetherday. The worse-than-expected these types of products that responsive and available” for it’s flour or spices or nuts, andlosses, coupled with significant might need to be recalled, as well good risks, Mr. Steves said. you may have a single recall of alosses in the general insurance as the general insurance market- product that’s been distributed tomarket for 2017, may result in place in being able to offer this “Underwriters are becoming 10 different companies and thosemore difficult reinsurance nego- type of coverage.” more selective in their risks and 10 companies have made four dif-tiations for specialty insurers, becoming more involved in man- ferent products with them — andthe report said. Capacity previously available aging that third-party risk,” he suddenly you’ve got a recall of 40 in the product recall insur- added. different products because of this The number of recalls is ance market may shift to other, one ingredient that was involved.increasing amid higher public potentially more profitable areas Generally, underwriters seem Certainly, that’s an area whereawareness of product safety where insurance rates might be to be increasingly wary of food we’re seeing the exposure.” increasing, particularly given and beverage as a product cat-FDA RECALL COUNTS egory, particularly food proces-The number of food and beveragerecalls have more than tripled in thepast six years, according to data fromthe U.S. Food and Drug Administration,which regulates about 80% of food andbeverage products accounting for morethan $1 trillion in consumer goods.NUMBER OF RECALLS PER YEAR2012 1,0662013 1,9612014 2,5452015 3,2652016 2,4322017 3,605Source: Aon Risk Solutions’ 2018 Emerging Trends inProduct Recall and Contamination Risk Management10 RIMS 2018 BUSINESS INSURANCE

CONFERENCE COVERAGE | WEDNESDAY, APRIL 18 SanAntonio|April15-18HEARD ON THESTREET Has anything stood JIM WRIGHT PETER CRONAN BECKY DOBBSout for you at RIMS? Risk manager Director of risk management Risk and insurance analyst What have you French Lick Resort Archdiocese of Denver Great River Energy learned? French Lick, Indiana Maple Grove, Minnesota “When I come to RIMS, I get a “It’s great to see that we are not the broader picture of the marketplace. “I was in a class on your role in only ones struggling with some of the We are a nonprofit, so for us it’s catastrophic claims and the 10 mistakes issues — the opioid crisis, for example. different than some of the things the you can make.” Hearing from other employers what industry sees as a whole.” works for them is good.” The nonfood side is experi- A significant risk management identification; process, food “There has been anencing a similar phenomenon change in the Food Safety and allergen and sanitation controls, increasing acceptance of thein recalled components, but it Modernization Act requires as well as supply chain controls coverage by companies makingdiffers from the food category regulated companies to better and a recall plan; and monitor- these types of products thatbecause those products are per- monitor and manage their sup- ing, corrective action and verifi- might need to be recalled, asishable, and the value is gener- ply chains, according to experts. cation mechanisms, according to well as the general insuranceally not high, Mr. Steves said. A The law’s hazard analysis and the U.S. Food and Drug Admin- marketplace in being able torecalled consumer product or risk-based prevention controls istration. In response to the fact offer this type of coverage.”automobile because of a com- framework requires that regu- that about 15% of the U.S. foodponent issue, however, could be lated entities have a written food supply is imported, the law also Bernie Steves,costly. safety plan that includes hazard requires food importers to ver- Aon Risk Solutions ify that food imported into the country has been produced in is and does that supplier actual- a manner that meets applicable ly have the financial wherewith- U.S. safety standards. al to reimburse you? A lot of these smaller component parts “Certainly, an important aspect or ingredient suppliers may that underwriters are looking at not necessarily have the finan- is how are you managing your cial ability to reimburse a large supply chain,” Mr. Steves said. branded company suffering not “It’s one thing to look at your only the recall expenses and the own quality control … to make value of the product, but also sig- sure that you yourself are doing nificant brand loss potential.” all the right things. Then it comes down to how am I man- aging my supply chain and the products that are coming in.” “Are you able to push down that liability down contractually to a supplier?” he continued. “Prob- ably most importantly, are you able to identify who the supplier BUSINESS INSURANCE RIMS 2018 11

San Antonio | April 15-18 CONFERENCE COVERAGE |WEDNESDAY,APRIL18 CHALLENGE The Spencer-Sedgwick 5k Fun Run on Tuesday raised $107,000 for the ar, in 1995, 1996 and 1997, at Geor- Spencer Educational Foundation. Pictured (from left) Andrew Miller of gia State University, majoring in Continued from page 1 Spencer and Robin Joines, Dave North and Jonathan Mast of Sedgwick. risk management while working in information technology to putvides the next generation of risk Ms. Phillips also said honorees Students who win the award herself through college. “I haveleaders with “an incredible forum at Spencer’s Sept. 28 gala will be must meet the foundation’s schol- spent my entire career at theto demonstrate their skills” as David Eslick, White Plains, New arship committee’s academic intersection of risk managementwell as an opportunity to develop York-based chairman and CEO criteria, as well as be pursuing and technology, so the new schol-their presentation skills. of Marsh & McLennan Agency a major, minor or certificate in arship is designed for students L.L.C., a unit of Marsh L.L.C.; and management information sys- who study both risk and technol- “Congratulations to everyone, Patrick J. Kinney, executive vice tems, technology, computer sci- ogy,” she said.no matter what the final results president of field management ence or a similar discipline.are,” said Mr. Bent. “You will fol- for Travelers Cos. Inc. Ms. Lisle said she learned aboutlow this as you move forward into Ms. Lisle, who is funding the Spencer 23 years ago from one ofyour careers. I saw a lot of pas- In addition, Ms. Phillips scholarship and is principal with her professors at Georgia Statesion over the last day and a half.” announced the $5,000 annual Marietta, Georgia-based Silvient University while working full Elizabeth Meldrum Lisle Schol- Risk Technology Consulting, said time and taking classes at night, Other finalists in the competi- arship, which will be awarded for during the reception that she had and “the idea of a $5,000 scholar-tion were the British Columbia the first time in 2019. been a three-time Spencer Schol- ship seemed over the moon.”Institute of Technology in Barn-aby, Canada; Peking University “I could not have imaginedin Beijing; St. Mary’s University how Spencer would impact myin San Antonio; Temple Univer- life and career” with the threesity in Philadelphia; and Virgin- scholarships, she said. “Ouria Commonwealth University in industry’s generosity and visionRichmond. for risk management education changed the entire trajectory of Zakia Phillips, chairwoman of my career.”the Spencer Educational Foun-dation, said during the ceremony “I can never measure all thethat the foundation has awarded ways that Spencer and RIMS have79 scholarships totaling almost touched my life, but I am delight-$400,000 in the past year, among ed to be able to pass it forward forother support. the next generation of Spencer students,” said Ms. Lisle. THREATS Many individuals come into mine,” he said. “It’s a very inter- unique and beneficial position” an organization and go through esting sort of cultural issue.” to pull all the stakeholders in Continued from page 1 background investigations, “but a program together, he said, can still be there 15 years later, Furthermore, he said, “what do whether it is human resources, There has to be a “clear balance and they’ll never have another you do to train your managers legal or finance. “Those groupsbetween having too little secu- background investigation,” Mr. to be attentive to people?” Some feel more comfortable going uprity and too much ... If there’s Gelles said, referring to how peo- organizations, he said, may have to the risk management level”too much, it can impede a busi- ple may change over the years. ethical hotlines, but what is done and using a risk frameworkness’s productivity” and have a to proactively protect data so it that an entire organization candramatic impact on growth, “so There has to be a “clear does not get away? adhere to, he said.that becomes very critical,” Mr.Gelles said. balance between having too Another factor to consider is Joshua Massey, department information security controls. head of strategic program pro- One of the emphases in devel- little security and too much ... tection and theta managementoping a program should be on “Everything goes back to risk at Mitre, said it is important thatprevention, said Mr. Gelles. An that becomes very critical.” appetite,” Mr. Gelles said. How firms understand their vulnera-appropriately designed program many controls should be put on a bilities around employees, includ-“can really prevent a lot of the Michael G. Gelles, Deloitte L.L.P. workforce in terms of what they ing loopholes and blind spots.behaviors” that lead to problems can do? Some organizations, forcaused by ignorant or compla- Another factor to consider is instance, prevent any use of per- He also discussed definingcent insiders, he said. mitigating the risk of departing sonal computers for work-related who the insider is. There is no employees, Mr. Gelles said. business. one-size-fits-all approach, he Another issue is vetting said, and you must understandemployees. “How are you think- People who leave an organiza- Also speaking at the session the culture of an organizationing about vetting?” he asked. tion often take information with was Michal Gnatek, enterprise to determine “how expansive or“How many of you do periodic them with the attitude of “I wrote risk manager for McLean, Virgin- restrictive you want to be” withvetting?” that, I designed that” and “it’s ia-based Mitre Corp., who said he the status of subcontractors, ven- reports to his organization’s chief dors and consultants. risk officer. “The risk manager is in a12 RIMS 2018 BUSINESS INSURANCE

CONFERENCE COVERAGE | WEDNESDAY, APRIL 18 SanAntonio|April15-18BEST OF SHOW The Risk & Insurance Management Society Inc. on Tuesday selected the exhibitor Best of Show winners for the 2018 conference and exhibition. The winners were picked by a group of conference attendees, with judges weighing presentation of product, creative use of space, and overall design and layout. The winners, clockwise from top right, are Old Republic Cos., large category; CareWorks Managed Care Services Inc., medium category; and Questpro Consultants, small category. OPIOIDS spend, he said. For example, H.B. 1 in Kentucky line was pretty flat,” he said. Overall between 2013 and 2017, went into effect in 2012, calling for Other data shows that prescrib- Continued from page 4 all physicians to access and pro- UPS has seen a 30% decrease in vide input on who is prescribed ers subjected to state formulariesand providers, they said. lost time claims receiving opioid opioids for a state database. as another strategy in reducing UPS has several protocols in prescriptions, Mr. Fenlon said. opioids in comp have resorted to “The immediate effect (was) much safer nonsteroidal anti-in-place for injured workers who Wider efforts to cut opioid use 400,000 queries in the first month, flammatory drugs, Mr. Ruser said.have opioid prescriptions. Strat- are working, too, said Mr. Ruser. July 2012,” Mr. Ruser said, addingegies include case managers for that the number of prescriptions Unfortunately, most strate-individual workers, “opioid let- Overall, states that have imple- dropped immediately. gies focus on the beginning ofters” to both the worker and his mented prescription drug mon- a claim, said Mr. Fenlon, whoor her prescriber that explain the itoring programs have seen a His researchers looked at states added this caution: “If you’vedrugs’ dangers, and “red-flag” noticeable drop in the amount without PDMPs to see wheth- missed it on the front end andnotifications that tell a claims of opioid prescriptions, said Mr. er their prescribing behavior you are fighting it on the backmanager what a worker was pre- Ruser, highlighting WCRI data changed year over year. In the end, it isn’t always successfulscribed and how much, said Mr. from states with programs in states without programs, “the and can be expensive.”Fenlon. For UPS, the strategies place.are seeing results, he said. “If you’ve missed it on In 2013, 31% of lost time UPS the front end and you arepatients received an opioid aspart of treatment, making up 26% fighting it on the back end,of the drug spend in the compa-ny’s workers comp costs. Today, it isn’t always successfulwith tighter programs in placeat UPS, 21% of injured workers and can be expensive.”receive a prescription for opioids,representing 22% of total drug Michael Fenlon, United Parcel Service Inc. BUSINESS INSURANCE RIMS 2018 13

San Antonio | April 15-18 CONFERENCE COVERAGE |WEDNESDAY,APRIL18 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 San Antonio. [email protected] www.businessinsurance.com EDITOR14 RIMS 2018 BUSINESS INSURANCE Gavin Souter (Chicago) [email protected] DEPUTY EDITOR Gloria Gonzalez (Washington) [email protected] SENIOR REPORTER Judy Greenwald (San Jose) [email protected] REPORTER Louise Esola (New Orleans) [email protected] REPORTER Rob Lenihan (New York) [email protected] REPORTER Matthew Lerner (New York) [email protected] COPY CHIEF Katherine Downing (Chicago) [email protected] COPY EDITOR Brian Gaynor (Portland) [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] HEAD OF SALES - EVENTS & WORKERS COMPENSATION MAGAZINE Jeremy Campbell (Cincinnati) [email protected] DIGITAL OPERATIONS MANAGER Kate Lichnerska (Chicago) [email protected] MARKETING MANAGER Katie Kett (Portland) [email protected] REPRINT SALES MANAGER Lauren Melesio (New York) [email protected] SUBSCRIPTIONS & SINGLE COPY SALES [email protected] 954-449-0736 Copyright © 2018 by Business Insurance Holdings, 4100 S. Hospital Drive, Suite 209, Plantation, FL 33317. PHOTOS BY MICHAEL MARCOTTE

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