Business Insurance | RIMS 2019 | Wednesday, May 1

Boston | April 28-May 1 WEDNESDAY MAY 1, 2019 20 19 SHOW DAILY Q&A: PHIL EDMUNDSON St. Joseph’s University tops rivals in Risk Management Challenge A long-time broker who BY CLAIRE WILKINSON recently moved into insurtech, A student team from St. A St. Joseph’s University team consisting of students Joseph Angelina, Mr. Edmundson Joseph’s University in Phila- Kate Branson, Ashley Myers and Daniel Tan claimed the 2019 discusses how delphia took first place over 27 Spencer-RIMS Risk Management Challenge on Monday. technology is set other university teams to claim to transform the the 2019 Spencer-RIMS Risk In addition to the winning and placed second in last year’s commercial insurance sector, challenges Management Challenge’s top team, the top three teams competition. in cyber risk underwriting and what’s honor Monday. included St. Mary’s University ahead for the insurtech revolution. The three finalists had made PAGE 6 The teams competed based “With a clear mission, their final presentations at the on solutions they developed in you can see how we can conference earlier Monday. Retail, health jobs a case study provided by Swed- integrate risk and compliance most vulnerable to ish furniture retailer Ikea A/S. into the business.” Awards to the teams were workplace violence made during a reception spon- In the case study, Robert Tobias Palsson, Ikea sored by the New York-based BY GLORIA GONZALEZ Zhang, RIMS board director Spencer Educational Foundation and Ikea China’s risk and com- which placed second, and Butler Inc. by Malmo, Sweden-based Employers in all industries may pliance director, asked the uni- University, which placed third. Tobias Palsson, deputy risk and find themselves dealing with an versity teams to identify the St. Joseph’s University also compliance manager for Ikea. incident of workplace violence, top five risks of integrating fielded the winning team in 2017 but the health care and retail new physical and digital com- Mr. Palsson commended the industries are particularly vul- merce opportunities for cus- finalists for their presentations, nerable, and employers should tomers and to develop the best adding: “I joined Ikea quite some take specific precautions to iden- risk management program to years ago, but I only began work- tify the potential for a person to address the issue. become violent and protect their See CHALLENGE page 15 workers, experts say. Members of the winning team were students Joseph Angeli- According to the U.S. Bureau of na, Kate Branson, Ashley Myers Labor Statistics, 16,890 workers in and Daniel Tan, and professor the private industry experienced and leader of the risk manage- trauma from nonfatal workplace ment and insurance program at violence in 2016 — 70% of them St. Joseph’s University, Michael working in the health care and E. Angelina. social assistance industry. Nine university teams of the “The health industry in general original 28 that entered the is at a greater risk,” said Dr. competition were selected to compete at the RIMS confer- See VIOLENCE page 15 ence, and three finalist teams were chosen after the first round of presentations Sunday. GROW DIVERSITY D&O MOMENT BEST OF SHOW Focus on viewpoints, #MeToo movement See the top exhibitors younger generation highlights D&O need from this year’s show PAGE 3 PAGE 4 PAGE 17 Entire contents copyright by Business Insurance Holdings. All rights reserved.

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CONFERENCE COVERAGE | WEDNESDAY, MAY1 Boston | April 28-May 1 Diversity efforts create better businesses: Panel BY ANGELA CHILDERS A focus on obtaining diverse ing segment, so how are compa- “Inclusion and diversity is der diversity in leadership ranks viewpoints and reaching out to nies able to connect and build are 21% more likely to achieve the younger generation even relationships in those diverse a necessary condition ... to average profitability, and that earlier can help companies fur- communities is another area the profitability rates increase to ther their diversity and inclusion we’re focused on.” drive business results. We’ve 33% when racial diversity is also goals, according to speakers at represented. a diversity and inclusion discus- When Imran Qureshi, manag- been on a journey ... around sion Tuesday. ing director and U.S. Midwest “Our clients are changing, our region leader at Willis Towers inclusion and diversity.” clients’ customers are changing, Panelists shared their strat- Watson PLC in Chicago, was talent pool changing … we need egies with moderator Victoria asked to take over as chair of Imran Qureshi, Willis to change, too,” he said. “If we Nolan, risk and benefits man- the company’s North American can engage every cohort, every ager of Clean Water Services in diversity and inclusion council invests in its internship program, demographic in our organization, Hillsboro, Oregon, and a member about two years ago, he said he which worldwide has about 900 we know that drives superior of the RIMS Diversity and Inclu- was initially hesitant because he participants last year. business results.” sion Advisory Council, about cre- didn’t want to be “the brown guy ating more diverse and inclusive in the front of the room” talking “We look to identify students The Risk & Insurance Manage- workplaces, the challenges they about diversity and inclusion, but early in their college careers ment Society Inc. made diversity face each day and how RIMS has wanted to make achieving supe- and really expose them to the and inclusion a priority when it made diversity and inclusion rior results his primary focus. insurance industry … really just established a task force, chaired by part of the organization. introduce them to the business East Hanover, New Jersey-based “Inclusion and diversity is and hoping after a few years Jennifer Santiago, director risk Rodney Johnson, divisional a necessary condition … to they see this as a viable career management at Novartis Phar- vice president of culture and drive business results,” he said. form,” he said. maceuticals Corp. She said RIMS inclusion at Arthur J. Gallagher “We’ve been on a journey … used the Association Inclusion Risk Management Services Inc., around inclusion and diversity, He said showing the diversity Index to identify gaps in diversity said that at his company, culture but what I found when I first took of different roles, such as how to help develop a vision statement and inclusion isn’t about philan- on the role, our organization had cyber fits in and the connectivity and create a foundation for an thropy or affirmative action, but sort of defaulted into events. Fast of the industry, helps show stu- advisory council. focuses on strategic alliances and forward to where we are today … dents the opportunities available partnerships as part of its busi- it’s focused around talent 2025.” in insurance. Mr. Johnson noted the separa- ness strategy as a way to help tion between those charged with provide diverse thought leader- One focus for Mr. Johnson is Another part of the strategy handling diversity and those on ship for clients, as well as partner recruiting a diverse group of should be showing leaders in the risk management side. with diverse organizations. future risk management leaders the industry how diversity helps by sharing with the younger gen- achieve profitability, said Mr. “We’re really trying to focus “How are companies eration — even high schoolers — Qureshi. He referenced a McK- on bringing those two worlds about opportunities in the insur- insey & Co. study that found that together and sharing how these able to connect and build ance industry. He said Gallagher organizations with higher gen- solutions can solve both needs,” he said. relationships in those diverse communities is another area we are focused on.” Rodney Johnson, Gallagher “Obviously, Gallagher being a global company, it’s important that we reflect the global demo- graphic that we’re looking to serve,” said Mr. Johnson, who is based in Cincinnati. “We know that minority and women-owned businesses are the fastest grow- BUSINESS INSURANCE RIMS 2019 3

Boston | April 28-May 1 CONFERENCE COVERAGE | WEDNESDAY, MAY1 #MeToo allegations put spotlight on D&O coverage BY CLAIRE WILKINSON supervision and breach of fiducia- increasingly expanding into the Edward Joyce, a New York-based ry duty of care, Ms. Zacharias said. D&O space, and international partner at Jones Day LLP. The changing landscape for coverage is also becoming an directors and officers liability In this climate, numerous insur- issue, panelists said. If a company is operating inter- with the #MeToo movement and ance policies in addition to direc- nationally in more than one juris- event-driven litigation is chal- tors and officers can be triggered, When more than one insurance diction, there will be “different lenging organizations to ensure panelists agreed. policy is triggered, risk managers rules and regulations depending their D&O insurance coverage is need to coordinate coverage, said on what space you are in,” Mr. adequate, experts say. “A whole panoply of insurance Leslie Lamb, director of global risk Joyce said. coverages” can come into play, management for San Jose, Califor- The #MeToo movement has including homeowners, gener- nia-based Cisco Systems Inc. As a multinational company it’s “exploded,” said Carol Zacharias, al liability, professional liability, important to be compliant “wher- senior vice president and under- errors and omissions, D&O and “If you have cyber coverage and ever you do business,” said Ms. writing counsel for QBE North employment practices liability D&O coverage, you need to coor- Lamb, adding: “Customers a lot of America, the New York-based insurance policies, said Ms. Zach- dinate who pays first,” she said. time demand that as well.” unit of Sydney-based QBE Insur- arias. ance Group Ltd. Different insurance policies Buying insurance coverage Cyber is another risk that is have different clauses, said locally can help, the experts said. “People have been accused of wrongdoing and paraded through D&O coverage used to be about the press. Complaints are com- accounting irregularities and ing into the Equal Employment insider trading, said Ms. Zacha- Opportunity Commission, pri- rias. vate cases are occurring, and human resources reports have “Now it’s becoming more like increased,” she said during a ses- general liability and event-driven sion addressing D&O coverage by activities like planes crashing for global corporations. and wildfires,” she said. Allegations can range from “Boards are being held more discrimination to harassment to accountable for the tone at the assault and battery to negligent top … they are expected to iden- tify, investigate and resolve these issues before they become a prob- lem,” she said. Digital risks, hardening market boost captives: Marsh BY CLAIRE WILKINSON “As you think about how you risks and extended warranty, ing captives include customers, finance increased retentions said Ellen Charnley, president of employees, sharing economy, Captive insurers play a critical to deal with volatility and with Marsh Captive Solutions in Las cyber liability and pet insurance, role as part of a risk financing emerging risk issues that are diffi- Vegas, Nevada. he said. strategy and are being used for cult to finance as insurers struggle a growing range of risks in the to adapt to autonomous vehicles, “Captives are getting more Some 14% of captives managed digital era, according to a report or affinity programs or brand sophisticated. Risk managers are by Marsh are writing employee to be released later this month by extensions … captives are the ideal delivering more products to the benefit risks, including medical Marsh LLC. tool to (finance those risks) backed chief financial officer and artic- stop-loss and multinational ben- by insurance,” said Mr. South. ulating the value of bringing in efits, at a premium of $7.3 billion, A few years ago, some were that profitable third-party busi- said Lorraine Stack, internation- questioning the long-term viabil- Some 22% of the captives man- ness,” said Michael Serricchio, al advisory and sales leader for ity of captives, but the market has aged by Marsh wrote some Americas sales leader for Marsh Marsh Captive Solutions in Dublin. changed, and pressure on prop- amount of third-party business Captive Solutions in Norwalk, erty/casualty lines of business is in 2018, according to Marsh’s Connecticut. The fastest-growing area is mul- causing companies to refocus on findings, which represents a 12% tinational benefits, said Ms. Stack. captives as part of their risk-fi- increase year on year. “This shows that captives are nancing strategy, said Martin doing different things to what “We have global growth running South, Marsh’s president of Unit- Third-party risks that compa- they were doing a few years ago. at 3.5%, and yet medical inflation ed States and Canada, during a nies are putting into captives Digitization and technology are globally is running at 10%. The Tuesday luncheon. include employee benefits, inde- changing that,” he said. simple economics are putting pendent contractor/customer employee benefits in the spotlight Some of the exposures touch- for large multinationals,” she said. 4 RIMS 2019 BUSINESS INSURANCE

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Boston | April 28-May 1 CONFERENCE COVERAGE | WEDNESDAY, MAY1 Phil Edmundson CORVUS INSURANCE Phil Edmundson, founder and CEO of Boston-based Corvus Insurance Holdings Inc., co-founded and ran William Gallagher Associates Insurance Brokers Inc. before selling it to Arthur J. Gallagher & Co. in 2015. He recently spoke with Business Insurance Senior Reporter Judy Greenwald about his new venture. Edited excerpts follow. “In cyber risk, we all know Q How did you go about forming risks are concerned? to evaluate an organization’s the threats are much more your current company? cyber defense, both at the A One of the big challenges is time of quoting a policy and significant and different A I decided to start Corvus in that insurance companies throughout the policy year. today than they were just a 2017 with the idea that most rely upon data claims informa- few years ago. That means of the successes in insurtech tion that comes from the past So at Corvus we monitor you need new tools to both were coming either in personal in order to build their under- the IT security defenses of understand the past and to lines or in very small commer- writing models for the future, our policyholders and we determine which of the prior cial lines, and that there was an and that works very well when issue periodic reports to them claims information is most opportunity to apply some of the risk itself is not changing about both their threats and relevant to ... underwriting.” the very same tools and data to and the protections are static. the strength of their devices. the vast middle of the commer- In those cases, the past is a What we’re doing is nothing cial insurance marketplace. good predictor of the future, new conceptually. It’s classic but in cyber risk, we all know risk management. But to com- Q What are some of the the threats are much more bat those risks, just as these challenges you face? significant and different today risks are digital, so we need than they were just a few years to use digital tools, and most A One of the biggest challeng- of the industry is caught up in es is being able to build very ago. That means you need new the idea they can capture bet- competitive insurance teams tools to both understand the ter underwriting by coming up and technology teams who can past and to determine which with longer application forms. work toward the common goal of the prior claims information But we think the information of using data to reduce the cost is most relevant to be used in gathered by those is frequent- of risk. your underwriting. ly incomplete and very difficult for the insureds to accurately Q How do you see the Most of those tools are in answer, because the insured industry’s distribution the category of artificial intel- doesn’t always know what methodology changing? ligence or machine learning, their threats are. where we test hypotheses A I think that for personal with large volumes of data and Q How do you see lines and very small com- develop new rules that can be insurtech developing? mercial insurance, we will see changed frequently. And it a relatively fast transition to also means having the ability A I kind of put insurtech into web-based distribution mod- two categories. The one els. There will still be humans we’ve spoken about mostly is involved, but the quality of the about bringing new products to digital interface and the ability market, either because of the to have mobile-enabled ser- use of new data for underwrit- vices will be very important. ing or they use the internet for That is both a threat and oppor- distribution. That’s one buck- tunity to the existing brokers. et. The other bucket is improv- ing efficiency and making the Q What are the challenges process of filing a claim less facing insurers insofar difficult for the policyholder. I as underwriting cyber think we’re going to see a lot of improvement of the categories. 6 RIMS 2019 BUSINESS INSURANCE

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Boston | April 28-May 1 CONFERENCE COVERAGE | WEDNESDAY, MAY1 Employee social media use requires tight management BY GAVIN SOUTER es, however, have less control news stories about security issues to access photos that are not over the devices, which reduces with electronic devices manufac- intended to be publicly accessible Social media use by employees their ability to manage cyber and tured by Huawei Technologies Co. on Facebook, he said. can pose significant and contin- information risks, Ms. Schultz Ltd. based in Shenzhen, China, ually changing risks to organi- said. “And of course there’s the should raise risk management And employees and their fam- zations that need to be actively privacy issue — can I access what concerns, Mr. Elliott said. ilies that allow apps on their managed, privacy experts say. I want to access as an employer?” phones to access location infor- “This is a moving target,” said mation can potentially compro- But companies can also mine Mobile devices are the “No. 1 Ms. Schultz. During employee mise security for key employees, social media to defend against way that your corporations are onboarding, companies with Ms. Schultz added. lawsuits they may face, they said going to be compromised, peri- bring-your-own-device policies during a session Tuesday. od,” said Keith Elliott, president should regularly update their To guard against social media and CEO of Reed Research Ltd., lists of permitted and not permit- risks, companies should ensure Bring-your-own-device policies, an investigation firm in Toronto. ted devices, she said. they have a qualified person in which allow employees to use charge of cybersecurity, she said. personal devices for work, have To guard against security com- Companies should also be “You have no idea how many peo- advantages for employers and promises, mobile phone users aware that employees’ social ple have told me in the last year employees, said Kadey B.J. Schul- should regularly update their media accounts can be legally that their head of accounting is tz, managing partner at Schultz phone software and consider “cracked” rather than “hacked,” also their cyber risk manager.” Frost LLP in Toronto. using operating systems that are potentially exposing information least vulnerable, he said. that an employee thought was pri- Conversely, organizations can “As an employer, you are reduc- vate, Mr. Elliott said. For example, mine social media to defend ing the initial cost of the spend In addition, risk managers a relatively simple understanding against lawsuits or fraudulent that goes into providing devices should stay informed on techno- of URL information allows users claims, she said. to people. It’s also an allowance logical trends. For example, recent for personal preference,” as “If you are managing a claims employees may prefer to use par- team and you think investigating ticular computer operating sys- through social media is valuable, tems, for example, she said. you want to do that immediate- ly on notice of the claim,” Ms. Organizations that allow Schultz said. employees to use their own devic- By looking at social media evi- “You have no idea how many dence immediately, organiza- tions can guard against attempts people have told me ... their to delete the information after discovery or depositions begin, head of accounting is also she said. their cyber risk manager.” And organizations should track new social media platforms to Kadey B.J. Schultz, Schultz Frost ensure that they are up-to-date on trends in social media use, Ms. Schultz said. On-site medical helps attract construction workers BY MATTHEW LERNER ings, president of M.D. Hastings “We’re seeing more and more on smaller jobs that responds Risk Consulting in Atlanta. forays into wellness where you when called in as quickly as 20 On-site medical services have can work some ergonomics into minutes. been growing in popularity and The first time he used such a your job hazard analysis,” he said, gaining favor among workers, service was on a hospital project as well as hydration. “There’s all Such services play well with according to speakers at a Tues- in which the hospital did not want kinds of things you can do.” workers, she said: “They appre- day round table discussion on construction workers coming ciate us making the effort.” insurance issues facing the con- through the emergency room but Cheryl Berman, risk manager struction industry. preferred a segregated area, Mr. for The Brady Cos. in San Diego, Online medical assistance is Hastings said. said her company uses on-site “not received as well as the face- “I’ve become a big believer in medical services on large proj- to-face” interaction with a health on-site medics,” said Mike Hast- Such a service can also be ects and uses a mobile service expanded, he added. See CONSTRUCTION page 17 8 RIMS 2019 BUSINESS INSURANCE

SPONSOREDSECTION Customer-focused approach helps QBE differentiate Uwe Schoberth | Global Head of Market Management for QBE Insurance Group Uwe Schoberth, Global Head of Market Man- enhance customer engagement, and deliver a ing) experience to be as frictionless as possible. agement for QBE Insurance Group, recently sat consistent level of outstanding service across We’re here to help them explore innovative ways down to discuss the large international insurer’s our global footprint. to manage all of this, designing bespoke poli- investments to create a more unified customer cy forms, helping them form captives, creating experience, from sales through client services. Q. Tell us a bit more about the GMM team’s new products to transfer and manage emerging Australia-based QBE, one of the world’s major plans to enhance client and broker experience. risks, and so on. insurers, employs more than 12,000 people in A. We want client and distribution partners to 31 countries. The company recently launched come to us because they view QBE as a valued Q. An insurer’s reputation for innovation the Global Market Management (GMM) a new partner that delivers relevant insights, advice has become a crucial component in the ‘centre of excellence’, demonstrating a clear and support with industry leading tools and re- considerations of brokers and clients. statement that QBE puts the customer, including sources at different touchpoints—not just 30 Do you agree? clients and distribution partners, at the centre of days before the policy renewals. To make good A. Absolutely. Carriers must step up and be as everything it does. on this commitment, the GMM team will facili- innovative if not more so than the dozens of tate building a global framework that provides InsurTech startups that have raised nearly $5 Q. You recently were appointed to head up a easy access to all of QBE’s global capabilities billion over the past six years to reimagine insur- new organization within QBE—Global Market and resources. ance. In doing this, we must consider each cli- Management (GMM). Tell us about GMM and ent’s unique risk profile to provide more targeted its focus. But that’s only part of the picture. We want and innovative insurance products and services. A. GMM is a center of excellence comprised of to institutionalize the relationships we have more than two-dozen representatives drawn to- with customers, communicating with them on a Q. Technology offers a means to do that, gether from various company and functions like regular cadence to cultivate a closer and more of course. distribution, underwriting, claims and technolo- value-added relationship. A. That’s true but the important thing is data gy. The team’s mandate is to further embed a first, technology second. There has been an unified culture into QBE with a Global Customer Q. Is helping clients with their total cost of explosion in both internal and publicly available Commitment approach as the foundation. This risk a key GMM imperative? data, in addition to increasingly innovative soft- will be accomplished by collaborating with the A. It is, indeed. We perceive the GMM team as ware tools to collect and analyze this informa- Divisions to create consistent customer-centric an extension of our clients’ risk assessment tion for decision-making purposes. Underwriters practices and then replicating them across our and risk engineering practices. For example, using predictive analytics can better segment international operations. We believe the GMM if we see an exposure emerging, we’ll directly and price risks. Claims professionals can more team has the knowledge, experience and exper- engage brokers and risk managers to ensure easily detect possible fraud, reducing aggregate tise to move the needle on all our strategic prior- they’re mindful of this risk and potential mit- claims costs for the benefit of all policyholders. ities in 2019 and beyond. igation strategies. We want to become more Lastly, the analytics present a tremendous op- than an insurer in the traditional sense—to be portunity to ease and simplify interactions with Q. What was the impetus for forming this a trusted partner that really knows the clients’ customers, from sales and policy submission global team at this particular juncture in time? business models and operations, can identify through the filing of claims. A. Our industry is clearly at a crossroads. key risks to these processes, and, above all, can Competition is intense and growing, pressuring help them improve business resilience. Q. Will the GMM team be involved in a need for market differentiation. By investing in developing innovative cyber risk solutions to new technology tools like predictive analytics, we Q. Is it fair to say that QBE, through GMM, enhance clients’ risk resiliency? will be able to provide more efficient, seamless is developing a differentiating customer value A. Cyber security is of increasing concern for and frictionless experiences to current and proposition? businesses of every size, right around the world. prospective clients, helping us stand out in the A. I would say that we are looking to provide We plan to more closely align our technical re- increasingly crowded marketplace. Our view of more than traditional insurance products that sources to help risk managers better prepare for digital and data transformation is that it must transfer client risks. We want to help clients bet- cyber incidents and mitigate the outcomes. be driven by what is best for customers—not ter manage their total cost of risk—not just their just in the products we offer, but also how risk financing costs via insurance but also direct Many growing small and medium sized busi- we offer them. We are also working closely loss costs like retained risks and uninsured nesses, for whom data is central to their opera- with our distribution partners to identify joint losses, their indirect costs like reputation and tions, too often lack the resources to effectively opportunities for collaboration by leveraging the workforce morale, and even their taxes, admin- manage it. This creates significant risk. QBE al- best of our data and analytic strategic offerings istrative costs, and so on. With today’s market ready offer cyber-insurance in some regions, and which could create value for our mutual clients. volatility, clients want more options than a tra- through our partnership with Zeguro, we have The enhanced focus with our technology and ditional insurance product that transfers their the potential to augment our position globally, internal industry expertise will continually risks. Many clients are looking for coverages leveraging the power of Zeguro’s platform. strengthen our ability to simplify processes, tailored closely to their unique exposures and risk appetites. And they want the (insurance-buy- That’s just another benefit of our ‘working together’ approach.

Boston | April 28-May 1 CONFERENCE COVERAGE | WEDNESDAY, MAY1 10 RIMS 2019 BUSINESS INSURANCE

CONFERENCE COVERAGE | WEDNESDAY, MAY1 Boston | April 28-May 1 BUSINESS INSURANCE RIMS 2019 11

Boston | April 28-May 1 CONFERENCE COVERAGE | WEDNESDAY, MAY1 HEARD ON THE STREET How is technology BRIAN ROYLETT JUDITH TERGINA TIFFANY FERRIOLE changing your everyday Principal Enterprise risk manager, Risk management analyst work? Roylett Risk Management Pty. Ltd.; auto club enterprises Honeywell International Inc. chapter executive of RIMS Australasia AAA Morris Plains, New Jersey Perth, Australia Costa Mesa, California “I feel like it’s evolving every day. “Rapidly. There’s a greater emphasis now “On the one hand, using technology I work with people all over the country on things like software security, and the to make my job easier in order to — good to have that collaborative protection of information is just critical … categorize everything I need to keep effect when discussing claims or cases, It’s one thing to develop new technology, track of … On the other side, technology especially when you can’t have the but we need to understand what the actually makes my job more interesting face-to-face interaction as you impacts of that technology are going to and challenging on the IT side, and would like.” be, and I think that’s a really key issue.” especially cyber.” TRUST. www.businessinsurance.com Risk management executives consider Business Insurance the #1 most credible brand.* BE A PART OF THE CONVERSATION ADVERTISE & SPONSOR: [email protected] SUBSCRIBE: businessinsurance.com/membership ATTEND: businessinsurance.com/events *Signet Media Preference Study 2015 12 RIMS 2019 BUSINESS INSURANCE

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CONFERENCE COVERAGE | WEDNESDAY, MAY1 Boston | April 28-May 1 CHALLENGE The Spencer-Sedgwick 5k Fun Run on Tuesday raised $120,000. From where you find your inspiration left are Robin Joines, president, Spencer; Angela Sabatino, programs for many years to come,” he said. Continued from page 1 manager, Spencer; Jonathon Mast, 5K coordinator, Sedgwick; Mariya Propis, chair, Spencer; and David North, president and CEO, Sedgwick. Earlier Monday at the finalists’ ing in risk and compliance for presentation, Joshua Lamangan, the last two years. With a clear by the foundation to risk man- During the ceremony, Mr. senior membership manager for mission, you can see how we can agement departments totaling Zhang expressed his gratitude to RIMS in New York, thanked the integrate risk and compliance $307,500, she said. Spencer, RIMS and his employer Spencer Educational Foundation into the business. It seems like Ikea for “making this happen for for the support that helped the this is not a secondary thought Ms. Propis also said honorees at all of us.” teams get to this week’s confer- because that is what you have Spencer’s Sept. 17 gala to be held ence and present their solutions. demonstrated today.” in New York City will be Steve Mr. Zhang also urged students DeCarlo, executive chairman of to bring their risk management Because of the foundation’s The Spencer-RIMS Risk Man- Charlotte, North Carolina-based skills into an industry they could work, “countless students have agement Challenge gives stu- AmWINS Group Inc.; and David “fall in love with.” been given opportunities that dents the opportunity to apply North, president and CEO of have changed their lives in many the knowledge they are learning Sedgwick Claims Management “I certainly found my love in positive ways,” Mr. Lamangan in class to real risk scenarios, Services Inc. based in Memphis, the retail and consumer indus- said. said Marya Propis, newly elected Tennessee. try, and I do hope all the young chairperson of the Spencer Edu- rising stars will find an industry Spencer and RIMS have been cation Foundation and senior jointly hosting the Risk Manage- vice president at Hunt Valley, ment Challenge since 2015, said Maryland-based wholesale bro- Ms. Propis. kerage All Risks Ltd., during the ceremony. “Consistency and partnership have been the hallmark of the Ms. Propis said the Spencer long-standing relationship that Foundation has awarded a record Spencer and RIMS have enjoyed,” 77 scholarships totaling $452,500 she said. this year to undergraduate and graduate students. Other teams that competed in the challenge were from Appa- Some 41 internship grants of lachian State University, British $7,500 each were also awarded Columbia Institute of Technology, Florida State University, Fudan University, Temple University and the University of Georgia. VIOLENCE threats seriously.” “From a law enforcement per- confrontational situation.” Retail industry employers spective, it’s very important to Other concerning behavior Continued from page 1 have somebody on call or have should have signage that states somebody who has access to includes increasing belligerence, Teresa Bartlett, Troy, Michi- their policies of having limited that video in a timely manner,” ominous threats, hypersensitivi- gan-based senior vice president cash on hand and post notices of said Officer Chris Perez with the ty to criticism, interest in recent- of medical quality for third-party security cameras in use to deter Brockton Police Department in ly publicized violent events and administrator Sedgwick Claims potential violence, Dr. Bartlett Massachusetts. “Our response outbursts of anger. Management Services Inc. said. and our investigation within the first few minutes — if we have Employers also need to pre- Of the 500 U.S. workplace homi- “We investigate every threat, access to that information, we pare their employees to react cide victims in 2016, 31% were can get information out with, say, in violent situations, including working in retail, according to and if we have to, we will hire a suspect description, direction guarding against normalcy the BLS. of travel.” bias — that belief that causes off-duty officers to protect, people to underestimate both “We get customers threat- Knowing and addressing the the likelihood of a disaster and ening us,” said David Rydeen, just to send the message.” warning signs that an employee its possible effects. senior director, risk manage- may become violent is critical, ment for Raising Cane’s Chicken David Rydeen, including a mishandled termina- “Your mind wants to believe Fingers, which has more than Raising Cane’s Chicken Fingers tion or other disciplinary action, that something is happening 420 restaurants. “We get crew bringing weapons to a worksite, for the right reason,” Mr. Perez members threatening us. We “We have cameras in all of our drug or alcohol use on the job, or said. “For instance, people report take every threat seriously. We locations,” Mr. Rydeen said. “Just a grudge over a real or imagined they heard gunshots, but say, ‘I investigate every threat, and if understand who has access to grievance, Dr. Bartlett said. thought it was fireworks.’ Is it we have to, we will hire off-duty cameras because after an event, typical for you to hear fireworks officers to protect, just to send managers sometimes like to “You don’t have to call someone in your office building? The the message that we take these show off that video.” in to fire them,” she said. “You quicker we can overcome that, don’t have to create that angry, the better off we’re going to be in one of these instances.” BUSINESS INSURANCE RIMS 2019 15

KEEPING RISK MANAGERS INFORMED FOR OVER 50 YEARS ARE YOU A MEMBER? RISK MANAGERS JOIN FOR FREE www.BusinessInsurance.com/Membership MEMBERS ACCESS THESE BENEFITS AND MORE… AUTHORITATIVE NEWS FLOOD COVER: Federal insurance program revamps risk analysis strategy - PAGE 4 AND IN-DEPTH ANALYSIS Written for executives APRIL 2019 concerned about the impact SPECIAL REPORT of risk on their business, RMIASNKAGEMENT INNOVATION PAGE 24 Business Insurance delivers news and analysis monthly in print and daily in online platforms. Customize your email preferences to directly receive news alerts that MACHINES matter most to you by topic, company and country. TACKLE RISK Artificial intelligence enhances efforts RANKINGS AND RESEARCH to comprehend, mitigate exposures PAGE 20 Rankings are published in Business Insurance magazine BUIN_Cover.indd 1 3/25/19 5:18 PM (print & online). Research reports and directories are available at a discounted member rate in PDF and Excel formats. EDUCATIONAL EVENTS Attend Business Insurance events to gain access to high-caliber educational content and network with industry peers and leaders. Visit www.BusinessInsurance.com/Events for a full schedule of events.

CONFERENCE COVERAGE | WEDNESDAY, MAY1 Boston | April 28-May 1 BEST OF SHOW The Risk & Insurance Management Society Inc. on Tuesday selected the exhibitor Best of Show winners for the 2019 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 FM Global, large category; Ventiv Technology, medium category; and Franco Signor LLC, small category. CONSTRUCTION thing they’ve signed on for,” Mr. made the agenda. “In these days of scarce Hastings said. “We’re seeing more and more” Continued from page 8 labor and competition for On making certain about work- modular construction, accord- care worker, she said. ers compensation, Mr. Hastings ing to Mr. Hastings, even as it subcontractors, being the Services that attract and satis- added: “Don’t let the fact that the remains uncertain as to how law doesn’t require small con- such materials may be treat- owner or subcontractor subs fy workers can be advantageous tractors to provide workers com- ed for liability purposes, as a amid heightened competition for pensation because of the number finished product or completed want to work with helps.” labor, Mr. Hastings said. of employees or something else, operation. don’t let that relieve them of the Mike Hastings, “In these days of scarce labor contractual duty to provide it.” Construction projects in New M.D. Hastings Risk Consulting and competition for subcontrac- York City present a unique type tors, being the owner or subcon- Modular construction also of challenge, according to Mr. Hastings. tractor subs want to work with “In New York, once you start helps,” he said. going underground, you run into Workers compensation is things that you never knew were another area where insurance there,” such as a right of way for challenges exist, according to a sprinkler in a building a block the discussion. away,” he added. Lapses in coverages such as “Get as much coverage for workers compensation have yourself” as possible, and do not become “fairly common” in rely on project partners when construction, according to Ted considering coverage, Mr. Hast- Dann, senior adviser at Hanover ings said. Stone Partners LLC. “If I’m exposed in New York, “Just because they have con- the more limit I can secure for tractual liability doesn’t mean myself” is the goal, he said. they have insurance for every- BUSINESS INSURANCE RIMS 2019 17

Boston | April 28-May 1 CONFERENCE COVERAGE | WEDNESDAY, MAY1 AROUND THE HALL CEO Adam Potter RIMS COVERAGE ONLINE PUBLISHER Business Insurance is delivering online Keith Kenner daily news reports from the Risk & Insurance Management Society Inc. (Chicago) annual conference in Boston. [email protected] www.businessinsurance.com EDITOR 18 RIMS 2019 BUSINESS INSURANCE Gavin Souter (Chicago) [email protected] DEPUTY EDITOR Gloria Gonzalez (Washington) [email protected] SENIOR REPORTER Judy Greenwald (San Jose) [email protected] REPORTER Angela Childers (Chicago) [email protected] REPORTER Louise Esola (New Orleans) [email protected] REPORTER Matthew Lerner (New York) [email protected] REPORTER Claire Wilkinson (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 - NORTHEASTERN U.S. & INTERNATIONAL Ron Kolgraf (Boston) [email protected] HEAD OF SALES - EVENTS & WORKERS COMP MAGAZINE Jeremy Campbell (Cincinnati) [email protected] DIGITAL AD OPERATIONS MANAGER Arielle Bassett (Chicago) [email protected] VICE PRESIDENT OF MARKETING Brian McGann (Buffalo) [email protected] DIRECTOR OF MARKETING & EVENTS Katie Kett (Portland) [email protected] MARKETING & EVENTS MANAGER Brittany Collins (Lafayette) [email protected] REPRINT SALES MANAGER Marie LaFerrara (New York) [email protected] SUBSCRIPTIONS & SINGLE COPY SALES [email protected] 954-449-0736 Copyright © 2019 by Business Insurance Holdings, 4343 Old Grand Ave., Suite 110, Gurnee, IL 60031. PHOTOS BY MICHAEL MARCOTTE

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