Business Insurance | RIMS 2017 | Wednesday, April 26

Q&A: MIKE DONOVAN Risk managers find success in solving problems, helping others The chair of the U.S. management BY GAVIN SOUTER committee and head of the global Success in risk management Risk management success takes many forms, from solving new tech and cyber comes in many different forms problems to making sure people are safe, panel members say. team for Beazley and can extend beyond the scope P.L.C. talks about of traditional risk management the Year and Risk Management who was most recently director the London-based responsibilities, a panel of risk Honor Roll awards. of insurance and business riskspecialty insurer’s efforts to expand its managers said Tuesday at thepresence in the U.S. market and the Risk & Insurance Management Success comes in many differ- See RMOY PANEL page 14challenges in covering cyber risks. Society Inc.’s annual conference ent forms, said Juliana Keaton, in Philadelphia. PAGE 6 Overcoming an industry prob- Insurers race lem, finding the right expert to to keep up with tackle a new risk, helping ansharing economy organization reach its business and social objectives and using BY GLORIA GONZALEZ risk management expertise to solve nontraditional problems The sharing economy is explod- can all be viewed as risk manage-ing, but insurers are having trou- ment successes, they said duringble keeping up with the pace. a panel discussion after the pre- sentation of the Risk Manager of The on-demand econo-my was estimated at St. Joseph’s University wins risk management challenge$26 billion in 2015,but is projected to BY ROB LENIHAN The Spencer Challenge winning in Boone, North Carolina, tookgrow to more than team from St. Joseph’s University second place and was awarded$300 billion by 2025, A team of risk manage- $3,000, while Butler Universityaccording to an anal- ment students from Philadel- versities and received $4,000. in Indianapolis took home theysis by Oliver Wyman phia-based St. Joseph’s Univer- Appalachian State University third-place prize of $2,000.Group, a division of Marsh & sity were named Monday as theMcLennan Cos. Inc. winners of the Spencer-RIMS The members of the winning Risk Management Challenge team were Morgan Bui, Alyssa But the business is challenging during the annual Risk & Insur- Cominsky, Nicholas D’Orazio,for insurers because of factors ance Management Society Inc. Andrew Grieco and academicsuch as the regulatory environ- conference in Philadelphia. adviser Michael Angelina.ment, said Jose Heftye, San Fran-cisco-based managing director The four-person team com- The challenge began threeand sharing economy practice peted against 23 other uni-leader with Marsh L.L.C. See CHALLENGE page 14 “This is a space that is evolving MEDICAL POT BIG DATA BEST OF SHOWreally, really fast, so it is very dif-ficult for the insurance markets Workers comp sees Technology aids in risk RIMS names this year’sto keep up to speed — they’re growing marijuana use management decisions top exhibitorsdeveloping a product and thentrying to catch up on the next PAGE 3 PAGE 4 PAGE 15version and the next versionbecause of the filing process and See ON DEMAND page 14 Entire contents copyright by Business Insurance Holdings. All rights reserved.

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Risk managers, insurers in the weedsover growing acceptance of medical marijuana BY LOUISE ESOLA that a majority of people in the use for illnesses and ailments, be legal for recreational use. United States are in favor of and that the about the same num- Three federal bills that would Coming soon to a workers com- approving medical marijuana ber think the substance shouldpensation claim near you: medi- permit widespread use of mari-cal marijuana. juana in various ways have been introduced, he said. That was the message to aroomful of risk managers at a “For anyone who thinks thissession Tuesday on medical mar- is going away, it’s not,” he said.ijuana at the Risk & Insurance “We will continue to see more.”Management Society Inc.’s annu-al conference in Philadelphia. The landscape of marijuana use in workers comp is chang- As of this month, 29 states and ing, panelists said.Washington now permit the useof medical marijuana — more In states such as New Mex-than half the country. ico and Louisiana, judges have ordered insurers to reimburse Panelist Kevin Glennon, Jack- injured workers for medical mar-sonville, Florida-based vice pres- ijuana, and other similar casesident of clinical programs for One are pending, Mr. Glennon said.Call Care Management, revealed See MARIJUANA page 17Risk Manager of the Year, honor roll feted at breakfastBY GAVIN SOUTER The Risk & Insurance Manage- RIMS chose Google Inc.’s Loren Nickel, far left, as its Risk Manager of the Year. Above, RIMS CEO Mary Roth, left,ment Society Inc. presented the presents awards to Risk Management Honor Roll winners Juliana Keaton, CSX Transportation; Benjamin Evans,Risk Manager of the Year and University of Pennsylvania; and Scott Schwarting, Whirlpool Corp.Risk Management Honor Rollawards at a breakfast awards cational experience to the role,” Honor Roll winners were: Juliana and Scot Schwarting, director ofevent Tuesday. he said Keaton, who was most recently risk management for Whirlpool director of insurance and business Corp. in Benton Harbor, Michigan. The 2017 Risk Manager of the Accepting the award, Mr. risk management for CSX Trans-Year is Loren Nickel, director of Nickel said, “from my perspec- portation Inc. in Jacksonville, Flor- The Risk Manager of the Yearbusiness risk and insurance for tive this is a team award,” which ida; Ben Evans, executive director and Risk Management HonorGoogle Inc. and its parent Alpha- includes his risk management in the office of risk management Roll awards programs, whichbet Inc. in Sunnyvale, California. team at Google and the brokers and insurance at the University were previously presented by and underwriters he works with. of Pennsylvania in Philadelphia; Business Insurance, were pur- Presenting the award, Nowell chased by RIMS last year.Seaman, 2017 president of RIMS, The 2017 Risk Managementsaid Mr. Nickel has implementedmany strategic risk managementstrategies at Google that havestructured and simplified thecompany’s decision-making andreduced the total value of risk. “He did all this without anincrease in spending,” Mr. Sea-man said. And as a qualified actuary, Mr.Nickel “brings a wealth of edu- BUSINESS INSURANCE RIMS 2017 3

Data collection is required to interpretemerging risks in an interconnected world BY ROB LENIHAN ... almost always looking at what we were years ago.” nimble business decisions, she something that is interacting Ms. Pierce said GE partnered said. Companies cannot approach with its environment in with Praedicat so therisk the same way they have in a completely novel modeler could review By using big data, Ms. Piercethe past, and the intelligent use way,” Mr. Reville important scien- said GE could see the results ofof data can make the difference, said. “The prob- tific studies and scientific research and determinetwo risk management analysts lem is that the “crunch all of the validity of the various issuessaid Tuesday. downstream that scientific related to fracking. consequenc- information “We know we can’t keep work- es … and down into As an example of long-term con-ing the same we did 100 years how it inter- something sequences, Mr. Reville cited theago, or 10 years ago, or even last acts with the digestible that case of asbestos, which was wide-year,” said Anna Pierce, man- wider envi- we could use.” ly used and hailed for its fire-re-ager of environmental health ronment over “We can’t read tardant properties, but whichand safety and enterprise risk its life cycle is 8,000 papers on a was later discovered to be toxic,initiatives at GE Oil & Gas. “The unknown in advance. given topic and say, leading to $200 billion in litigationworld’s evolving. Everything’s No matter how much you ‘I understand 100% what all and bankruptcies.becoming faster and more try to guess or understand it, youinterconnected. And with that won’t know. And it’s only over the risks are,’” she said. “Today our economy is gener-increased speed comes increased time that this is revealed, and it’s Ms. Pierce discussed GE’s ating an ever-increasing flow ofcompetition, higher expectations typically revealed by science.” ‘new asbestos,’” he said. “Theyand more risk.” experience with the risks asso- may not have the downstream Ms. Pierce stressed the need to ciated with fracking, the con- consequences of asbestos … but Ms. Pierce and Robert Reville, be proactive, rather than reac- troversial process of injecting they (have) innovations withCEO of Praedicat Inc., a Los tive, when dealing with risk. liquid at high pressure into sub- unknown consequences down-Angeles-based risk modeling terranean rocks to force open stream.”company, spoke during a pre- “It’s all about perspective,” she existing fissures and extract oilsentation on the use of big data said. “If you have the perspective or gas. The practice has been Genetically modified organ-Tuesday at the Risk & Insurance that everything and every risk associated with earthquakes, isms, nanotechnology, 3-D print-Management Society Inc.’s annu- is a no, you don’t get very far in water contamination and other ing and fracking are innovationsal conference in Philadelphia. the business world. Corporate issues. with unknown downstream con- America has to be a little bit sequences, Mr. Reville said, and “When you’re looking at major more ready to take on risk than The information provided by “we’re relying on science to ulti-technological innovation, you’re Praedicat helps GE make more mately understand the increasing risk that is associated” with them.Title VII interpretations on LGBT issues perplex employers BY GLORIA GONZALEZ Sales, the 11th U.S. Circuit Court “Obviously, the courts are. This is amount of protection.” of Appeals in Atlanta last year why the definition of what is sex The issue is complicated by Courts are just as confused as allowed a lawsuit filed by a termi- under Title VII has become soemployers about whether feder- nated transgender employee to important because claims that are uncertainty about the Trumpal law prohibits discrimination move forward, but the same court couched in terms of ‘I’m a woman administration’s position, she said.based on gender identity and ruled in Evans v. Georgia Region- and I’m being discriminated In 2015, the U.S. Equal Employ-sexual orientation. al Hospital in March that Title against because my behavior does ment Opportunity Commission VII of the Civil Rights Act of 1964 not conform to what other people took the position that Title VII pro- People believe that there are fed- does not prohibit employers from expect as a woman’ are treated tects workers against sexual orien-eral protections for the LGBT com- discriminating against employees differently than ‘I’m a woman who tation discrimination and the agen-munity nationwide that really don’t based on sexual orientation. happens to like other women and cy’s official interpretation has notexist, said Victoria Nolan, risk and I’m being discriminated against changed, but the U.S. Departmentbenefits manager for Clean Water “So, are you confused?” said because of my sexual orientation.’ of Justice’s position, updated onServices in Hillsboro, Oregon. Liani Reeves, attorney with Bul- That has not received the same Jan. 25, does not include discrimi- lard Law in Portland, Oregon. nation based on sexual orientation. In Chavez v. Credit Nation Auto4 RIMS 2017 BUSINESS INSURANCE

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Mike Donovan Mike Donovan, San Francisco-based chair of the U.S. management committee and head of the global tech and cyber team for Beazley P.L.C., recently spoke to Business Insurance Deputy Editor Gloria Gonzalez about the London-based specialty insurer’s efforts to expand its presence in the U.S. market and the challenges in covering cyber risks. Edited excerpts follow. We are seeing more (cyber) Q How did you get into claims Q What are the challenges to ways remained the same. Data buyers that are not in the management? growth in the U.S. market? breaches happen, and they have to be addressed very quickly.traditional data-owner space, A It wasn’t my intention. I was A Obviously, the (catastro- like retailers and health care graduating with a degree in phe)-exposed business Q What are the challenges in companies ... And we’re also marketing and fully intended remains challenged in the U.S., covering cyber risk, and how seeing quite a bit of demand to go into marketing, but an although we are starting to see are you addressing them?from the Global 500 companies Aetna property/casualty rep- some opportunities there after resentative came to my univer- a number of years of declining A We are seeing more buyers to build large towers. sity. I introduced myself and, prices. But we are heavily into that are not in the tradition- before I knew it, I ended up a specialty lines areas in the U.S., al data-owner space, like retail- claim representative for Aetna and we are continuing to see ers and health care companies, Casualty & Surety in Dallas. growth in most of those lines. more the manufacturers and product companies. And we’re Q What are the company’s There’s a lot of competition, but also seeing quite a bit of demand plans for the U.S. market? that’s been the case for quite a from the Global 500 companies Where do you see the growth few years. The economic con- to build large towers. The chal- opportunities? ditions are fairly stable. The lenge in the marketplace has challenges in the U.S. for us are been to come up with both the A In the U.S., we’re continu- really being able to develop our capacity and ability to provide ing our strategy, which is to distribution network, grow our the types of terms that those grow our regional underwrit- brand and increase our pres- buyers are looking for to cover ing centers around the coun- ence around the country. their specialized exposures. try and our overall footprint. Last year, we formed a part- And the strategy there is for Q What do you see as the key nership with Munich Re to offer us to be closer to the business issues and risks in the cyber large organizations limits up to and the brokers and clients space? $100 million to help them put and get better access, partic- large towers together. ularly in the middle market A We’ve been actively writ- and small-account business. ing cyber insurance for Interestingly, although the We are continuing to focus on well over a decade. The key coverage has been fairly well- areas that have been strong issues and risks have in many known for quite a few years, in the last year or two. Those there still seems to be a steep include environmental, miscel- learning curve for many bro- laneous medical, cyber. We are kers and buyers, so education also focusing on the small-ac- is a challenge. As the market- count areas where demand is place grows and more different fairly strong, such as technol- types of buyers come into it, ogy errors and omissions and we continue to see a need for architects and engineers. We education. Unless the buyers recently added marine as a understand the need for the product line in the U.S. coverage and what it will do, they won’t buy it.6 RIMS 2017 BUSINESS INSURANCE

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Sunmi COLLEGE STUDENT SNAPSHOT Hirata Sunmi Hirata is a senior at Georgia State University in Atlanta, I am drawn to analysis-based where she is majoring in risk management and insurance. research ... and I have been able to She is the risk analyst at Haverty Furniture Cos. Inc. and an hone this skill the past four years ambassador for the GSU Honors College, where she is currently by working in the RMI department pursuing research related to risk with a team in the school’s RMI department. Ms. Hirata also is a Spencer scholar and an analyzing topics from cyber risk Anita Benedetti scholar. She recently spoke with Business to discrimination trends. Insurance Reporter Joyce Famakinwa. Edited excerpts follow.8 RIMS 2017 BUSINESS INSURANCE What are your post-college career plans or goals? My post-graduate plans are a bit up in the air, since I am still looking at companies and programs. I am fortunate for the experiences I was able to attain these past two years, where I interned with Chubb, Sterling Risk Advisors, Swiss Re and currently Havertys. Having this unique look from all sides of the industry, from the carrier and broker side of the business to the buyer side, I feel pretty confident in taking my time to figure things out. I am drawn to analysis-based research, which I never thought was something for me, but through the GSU Honors College I was able to join a program that uncovered my interest in research, and I have been able to hone this skill the past four years by working in the RMI department analyzing topics from cyber risk to discrimination trends in the United States. How did you become interested in risk management? My interest in risk management originates from my innate desire to learn. I found the topic I knew the least about in the business school, and I tried it out — and I got lucky, since GSU has a stellar risk management and insurance program! Eager to learn, I started applying for internships my sophomore year and was accepted for Chubb’s summer internship program in Atlanta. This experience was what confirmed that this industry was the place for me, and for me it opened a world I had no idea existed. At the same time, my research team had just presented our research on cyber risk at the Georgia Undergraduate Research conference, which we chose because it’s increasingly relevant. What do you hope to learn at RIMS 2017? I am looking forward to all the sessions that I will be able to attend, specifically the ones on cyber risk. I was able to attend my first Atlanta RIMS conference a couple months ago and was blown away by the event. What I enjoyed most was that while it was a high-energy event, it also felt like a homecoming event. People who hadn’t seen each other in years were able to catch up while discussing current industry events. This further confirmed my desire to be a part of this community. What’s your favorite TV show or movie? “The Big Short” explains the underlying motives and practices that caused the market crash in 2008 … this movie does an excellent job of informing the audiences of the forces at play in a unique way. What’s your favorite book? Sheryl Sandberg’s “Lean in for Graduates”

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HEARD ON THESTREETWhat have you ANN ADAMS BETTY COULTER CHARLES KOLODKIN learned so far at RIMS? Enterprise risk manager Director of risk management and Executive director of enterprise risk Cigna Corp. OK insurance management and insurance Philadelphia University of North Carolina-Charlotte Cleveland Clinic Health Systems Charlotte, North Carolina Cleveland “More about enterprise risk management. It’s my focus. “Learning how innovative risk “The importance of looking at strategic I like to learn about practical managers are and the challenges; risk in the risk management process.” examples to bring back to our how rapidly everything is changing, office to use in our program.” in particular cyber security.” It’ll cost We THOUGHT we could EXTRA. do it from here. Our home office says we need to... WON’T WORK. CAN’T do it. WE DON’T We’re as surprised DO IT as YOU were. THAT WAY. Sorry to have to tell you this... BUSINESS INSURANCE RIMS 2017 13

RMOY PANEL very rewarding,” she said. management for Whirlpool Corp. CHALLENGE Risk management success also in Benton Harbor, Michigan. Continued from page 1 Continued from page 1 includes finding the right people “We have a very robust totalmanagement for CSX Transpor- to address a problem, said Ben cost of risk model. We measure months ago when the teamstation Inc. in Jacksonville, Flor- Evans, executive director in the what we do and mark our suc- were each presented with a riskida, and was named to the 2017 office of risk management and cess by that. But the reality is management case study. TheyRisk Management Honor Roll. insurance at the University of that somebody went home not developed solutions to the chal- Pennsylvania in Philadelphia hurt … that all of our planes lenge, and nine of the teams were Collaboration efforts with and a member of the 2017 Risk landed, that all of our shipments selected to attend RIMS 2017,competitors and insurance pro- Management Honor Roll. got where they’re going, and RIMS said in a statement.fessionals to solve an industry people are safe,” he said.problem can be viewed as a risk “Success for me comes down to Palo Alto, California-based Pay-management success, she said. never being complacent — know- Success can also be measured Pal Inc. was the 2017 company ing your goals, understanding by how risk managers bring case study and Laura Langone, For example, all railroads your purpose and then working their skills to help other areas PayPal’s director of global riskmust transport dangerous toxic really, really hard to get to that of an organization, said Richard management and insurance andmaterials, which present a cata- purpose … it’s all about sur- J. Roberts, director of risk man- RIMS board director, presentedstrophic liability risk, but insur- rounding yourself with people agement and employee benefits the winners Monday evening.ers are unwilling to provide that help you get there,” he said. at Ensign-Bickford Industriesreasonably priced capacity, she Inc. in Simsbury, Connecticut, Ms. Langone praised the teamssaid. Three years ago, risk man- For example, when the Tohoku who was also on the panel. for their outstanding work, add-agers for several railroads came earthquake and tsunami hit ing that “every single one of youtogether to work with brokers Japan in 2011, the university “I’ve been asked to bring those brought something to the table.”and underwriters to create the had 293 people in Japan. While skill sets to employee benefitsCantilever Excess Pollution Lia- they all returned safely, “I rec- to derisk our employee benefit “We need you to be a part ofbility, which now provides $650 ognized that I needed someone program, I’ve been asked to get RIMS,” she said. “You have somillion in capacity. on my staff who would work involved in our 401(k) to provide much to offer and so much to on international risk manage- financial education, because learn, too. And always challenge “To me, that’s success. That ment exclusively. I couldn’t do that’s a big risk for employees that status quo. That’s what wesolved a problem that I had, and it alone,” Mr. Evans said. these days … I’ve been asked to need.”at the same time, helped others derisk our pension plan and takein the industry. It’s incumbent Success in risk management the risk management process The Spencer Educationalon all of us to try and come up can also be measured by how risk and apply it to projects outside Foundation Inc. is a New York-with things like that, and it’s managers help their organiza- the typical scope of risk manage- based nonprofit that supports tions meet their wider goals, said ment,” he said. risk management and insurance Scot Schwarting, director of risk education. Since its founding in 1979, the foundation has awardedON DEMAND about $6 million in scholarships to undergraduate and part-timeContinued from page 1 graduate students and $3.25 mil- lion in grants to universities, cor-all the due diligence an insurer we don’t have 10 years of histor- management strategy, which porations and professional insti-needs to go through,” he said. ical information in losses that is features a 15-point certification tutions for educational programs,“A lot of these companies are going to support a traditional process for drivers, including internships and conferences.startups, so there is no public underwriting model.” fingerprinting.financial information available RIMS CEO Mary Roth praisedfor (insurers) to understand Carolyn Yashari Becher, “It took a little bit of convinc- the teams for their enthusiasmtheir credit exposure. These co-founder and head of poli- ing to get people on board with and fresh perspectives.companies are so new and their cy and people with Los Ange- what we wanted to do,” shebusiness models are so new that les-based HopSkipDrive Inc., said. “Now that the industry has “Congratulations to St. a ride-sharing service for kids matured a little bit, we’re having Joseph’s University and all of “It is very difficult for the age 6 and above, said confused a much better time getting our our Spencer-RIMS Risk Manage- insurance markets to keep regulators were eventually (insurance) rates to a place that ment Challenge teams for their up to speed ... developing a swayed by the company’s risk will work for our business.” outstanding work and risk man- product and then trying to agement ingenuity,” she said in a catch up on the next version.” statement. Jose Heftye, Marsh L.L.C. Ron Davis, chairman of the Spencer Foundation, and exec- utive vice president and head of customer management for Zurich Commercial Insurance, said in a statement that “each team was highly prepared, thoughtful and diligent in their analysis and pre- sentation of the case study.”14 RIMS 2017 BUSINESS INSURANCE

BEST OF SHOW The Risk & Insurance Management Society Inc. on Tuesday selected the exhibitor Best of Show winners for the 2017 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 Healthesystems L.L.C., small category; Travelers Cos. Inc., medium category; and Rosenberg & Parker Inc., large category. Visit booth #1033 for a demo Riskonnect Insights Can Turn Your Business Risk Questions From Frequently Asked to Finally Answered. With Insights, you can clean, combine and normalize your multitude of different data sources into a single, integrated source of truth. riskonnect.com Enterprise 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

MARIJUANA that marijuana has become more government’s stance on mari- have boosted state coffers. But a accepted because it has fewer, juana has stalled research. key challenge in the workplace Continued from page 3 and possibly less dangerous, has been measuring impairment side effects than opioids. There are few clinical studies when a person uses marijuana, One of the key drivers for of marijuana because cannabis she said.increased marijuana allowance “You don’t get the constipation is classified by the U.S. Drughas been the opioid epidemic, he or the respiratory issues when Enforcement Administration as Navigating the workplacesaid. His presentation included a you use (medical marijuana),” an illegal Schedule I substance implications will take time,scan of facts from news articles he said. — a category that includes added Mr. Glennon.on opioid addiction and overdose cocaine, heroin and other drugsdeaths. The cumulative side effects deemed by the DEA to have no “(Marijuana is) truly going to of opioids are one reason mar- medical use. change the way risk managers Many prescription opioids are ijuana is getting the preferred and employers are going to havesynthetically derived from her- treatment even at the insurer Panelist Markie Davis, risk to think about fit for duty andoin, Mr. Glennon said. “You are level, he said, adding that more manager for the State of Colora- impairment in the workplace,”giving them heroin,” he said of prescriptions are often needed do, told attendees of the state’s he said. “When we talk about thethe most common drugs pre- to combat those effects. experiences with marijuana, workplace, the majority of thescribed to injured workers. which was approved by voters people that we see (using med- “There are several states for medical use in 2000 and rec- ical marijuana regularly), they According to a slide displayed where the insurers have been reational use in 2007. have long since settled theirfor attendees, opioids can pro- ordered to reimburse for medi- indemnity (claim). They aren’tduce several dozen side effects, cal marijuana … they’ve stopped Among the pros: Tax revenues coming back to work.”including dryness of mouth, fighting it,” Mr. Glennon said. generated from marijuana salesdistortion of time and increased “What (insurers) have seen isheart rate. Mr. Glennon noted the significant decrease in the cost of prescription medication “There are several states and in some cases, the individual where the insurers have is off all prescriptions and (only) been ordered to reimburse using medical marijuana ... to for medical marijuana … manage their chronic pain.” they’ve stopped fighting it.” “Many individuals are turn- Kevin Glennon, ing to medical marijuana” to One Call Care Management abandon their prescriptions, he added. “What we see in the work comp industry is primarily it is being recommended for the man- agement of chronic long-term pain,” he added. But medical marijuana still has a way to go before it gains full acceptance, he said. Mr. Glennon said the federalMarketplace 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

Liberty Bell meetsringing innovation.Visit booth 927 to learn how ourInnovation Team can help your business.At AIG, we’ll help you minimize risk by bringing you forward-looking technology,products and protection. Check out some of our latest efforts.Insurance, products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Insurance and services may not be available in all jurisdictions, and coverage is subject toactual policy language. For additional information, please visit our website at www.AIG.com.

Specialists in excess casualtyAt Markel Global Insurance, our underwriters and claims professionalsare specialists. We provide customized solutions for sophisticatedrisks. Our casualty, healthcare, marine, professional liability, andproperty products originate from hubs in the US, Bermuda, and Europe.2017 excess casualty target classes• Construction• Energy• Healthcare (hospitals and long-term care facilities)• Industrial• Life sciences• Tough products• TransportationMeet with our contacts at RIMS to learnmore about our excess casualty solutions.John [email protected] [email protected] [email protected] [email protected] [email protected] Global InsuranceCasualty | Healthcare practice | MarineProfessional liability | Property | Trade creditmarkelcorp.com