CHART Exchange October 2021

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6 Glenn W. Clark, CPCU, Publisher CHART Exchange Earliest Adopter


Thomas Edison Was Right!


How Can The Insurance Industry Appeal To Gen Z?


Lloyd’s Lab Announces Its Seventh Cohort With A focus On Claims & Cryptocurrencies


How Schools, Sports And Rec Have Fared Through Covid-19


Multi-Channel Customer Engagement - Today’s “Must” For Insurers


Nine Best Practices In Defending Billion-Dollar Claims


Initial Access Brokers: Fueling The Ransomeware Threat


Data Analytics: “The Holy Grail” For Insurers


Student Report: Luke Maguire, Social Media’s Surging Presence In Business


Fight “The Great Resignation” With The Greater Digitization!


Lloyd’s Reports Strong 2021 Half Year Results With 1.4 BN Profit & 92.2% Combined Ratio


Student Report: Rithika Chowdhury, Healthcare Cyber Breaches & Solutions


Lloyd’s Launches Climate Action Plan

Cover Photo - Attribution 2.0 Generic (CC BY 2.0) William Warby

Back Cover: By Lloyds of London -, CC BY 2.5, php?curid=15086341


Senior at West Chester University on Social Media’s Surging Presence In Business

OCTOBER 2021 VOLUME 6 - ISSUE 3 Publisher: CHART Exchange Glenn W. Clark, CPCU Membership Services Kate Boyle Advertising: Kate Boyle Managing Editor: Kate Boyle Contributing Editor: Frank Huver

Rithika Chowdhury, Junior at Hunter College on Healthcare Cyber Breaches & Solutions

Layout, Design & Circulation: Ron Manera AdMax Corp., Inc.

CHART Exchange 3001 Philadelphia Pike Claymont, Delaware 19703 302-765-6001 Last Issue:






y two favorite Thomas Edison quotes have a lot in common with each other:

1. “I have not failed. I’ve just found 10,000 ways that won’t work” 2. “Just because something does not do what you planned it to do doesn’t mean it’s useless” The idea of creating the Cover Holders And Risk Takers (CHART) Exchange was birthed in late 2014 but could not be executed until 2015 due to a non-compete clause from our sale of the Target Markets Program Administrator’s Association (TMPAA) in December 2009 to a more well-funded perpetuation partner. Since only four London operations with domestic paper were permitted to join TMPAA we saw an opportunity for the other 89 syndicates to be able to enjoy a more direct dialogue with U.S. Program Administrators. INAUGURAL EVENT Our team embarked on a strategy

4 OCTOBER 2021

of holding an event in Philadelphia called “The Declaration of Interdependence” in October 2015. Some of the essential elements of our first meeting follows: 1. Limit attendance to 300 and test the concept. 2. Decision-makers only and direct dialogue 3. 100+ program administrators that possessed current books of business. 4. Representatives from at least 15 syndicates 5. Limited number of specialized vendor partners with distinct London strategies 6. The theme of “Interdependence” – we all need each other in order to prosper. 7. Limited London Broker participation (3 firms) to promote new business only. No attempt to proselytize the movement of any existing London business to a different Broker. 8. Workshops and activities on the central theme of new business to London. This included a “Shark Tank” contest with


Glenn W. Clark, CPCU Publisher & Earliest Adopter a $1,000 prize for best new program idea. 9. Guarantee at least 10 pre-set appointments for every London underwriter in attendance. 10. Survey every attendee postevent to see what transpired, what could be improved, and ensure the “new business only” theme was respected. Some of the major obstacles to pulling off our first event include: 1. Expenses. The entire expense burden was borne by our agency and TPA partner Wilson Elser. 2. The London Brokerage community was not very keen on not being invited as we were viewed as disrupters. “CHART is trying to take our business”.

3. Lloyd’s corporate management reaction was tepid, not wishing to upset the status quo. 4. Recruiting syndicates to attend was harder than expected. London Brokers are the “hunters”, bringing opportunities to the syndicates. We personally met with over 30 syndicates to deliver our message. 5. Disinformation generating from other U.S.-based association groups (CHART trying to appoint all retailers to Lloyd’s, etc.) 6. Cost model – In the U.S. model, carriers willingly pay for you to aggregate prospects (it saves thousands in expense). London syndicates were used to a much different dynamic (business brought to them) and less practiced at “hunting” for their own appetites. EVENT RESULTS Three years of meetings (1 in Philadelphia, 2 in Baltimore) yielded a diverse array of outcomes: 1. No doubt…we all had a great time, made new connections, and learned a lot. 2. Over $125 million worth of program business moved to London in our first two years. 3. Individual London Brokers obtained new clients they never would have met without CHART.

4. Specialized vendors made connections to promote their London strategies. 5. 50 agencies attended our CHART Goes to London (CGL) pilgrimage. 6. Other associations admitted London syndicates as full members (even if they did not have U.S. paper), somewhat preempting our limited attendance model. 7. Our team was not able to make events commercially viable for ourselves and our domestic vendor partners.

Our CHART connections from the past six years have resulted in a financial model that works for all of our partners.


We thank you for your subscription and wish each of you continued success in the future. Hoping that you are able to see yourself in another Edison quote:

In 2019 we launched a “virtual” version of the CHART Exchange termed CHART 2.0. CHART 2.0 enables us to help U.S. program managers connect with London via an e-magazine, program questionnaires, committed vendor partners, and multiple Brokers who specialize in the classes of business the agency specialist is seeking. All of the functionality of CHART 2.0 is contained in an e-brochure that can be accessed by clicking here.


SIGN-OFF ON CHART E-MAGAZINE This will be the final issue of CHART E-Magazine. The costs to staff, write articles, solicit content, and publish have increased to the point where we need to pare expenses in order to focus on our active clients. The e-magazine was issued to over 100,000 subscribers at no cost to them for over four years.

“I never did a day’s work in my life. It was all fun”

Glenn W. Clark , CPCU CHART’S Earliest Adopter




HOW CAN THE INSURANCE INDUSTRY APPEAL TO GEN Z? This article first appeard in Insurance Business America By Surina Nath


(pictured above), CEO at ACORD, explained to Insurance Business. “We have silent, boomer, Gen X, millennial, post-millennial (Gen Z).”

topic too often flying In 10 years, Gen Z will be 20-30% under the radar in the of the workforce. If the insurance insurance space is the industry hopes to appeal to a importance of appealing younger crowd, digitization and to younger generations. Millennials transparent have already communication entered the ACORD’s will be essential. industry, and research now it is time for ACORD looked also found that the Gen Z to become at 30 years of employees. insurance industry employment ranks below mining data from According to carriers, and manufacturing research from reinsurers and when it comes to Aon Programs, brokers and Gen Z makes attracting, developing, found that, up 20% of the and retaining younger surprisingly, US population, all generations talent, even though while millennials care about the account for 50%. insurance value same values in It is becoming systems align with the industry. increasingly millennials and Gen Z.“ The difference apparent that the is that younger industry needs to generations are revamp business more open to voicing their opinion. models and shift attention towards They say when they want more or understanding the employment want something to change. behaviour of younger generations. “This is the first time where we have five generations of people working within the industry,” Bill Pieroni

ACORD’s research also found that the insurance industry ranks below mining and manufacturing when it comes to attracting, developing, TABLE OF CONTENTS

and retaining younger talent, even though insurance value systems align with millennials and Gen Z. “It’s a very fulfilling industry and it’s a shame we don’t do a better job convincing people to join,” Pieroni added. “It’s about a company’s culture, process and perspective.” “Gen Z is more comfortable in an online ecosystem than other generations, millennials included. Being digitally native is a unique characteristic of this group and something that is really going to mold the experiences companies will create for them,” Dave Zeornes, sales leader at Aon Programs told Insurance Business. Gen Z values authenticity and sincerity from a marketing perspective. Zeornes noted that younger generations look at successful financial companies as trusted brands, which evidently shapes their employment patterns. “When we talk about authenticity in the insurance industry, for a long time it’s been based on referrals and knowledge of the risk management

See GEN Z Page 25 OCTOBER 2021



CHART CAN GET YOU THERE FASTER! Most of us know about Lloyd’s of London. The market’s 332 year track record of innovation, technical expertise, and product diversity has cemented its reputation within the industry. Unfortunately, the vast majority of U.S.-based agencies with new program or product ideas are unsure of how to access the world’s oldest insurance brand. The CHART Exchange can help. We were established for the sole purpose of growing the U.S./London marketplace by serving as the conduit between domestic producers and Lloyd’s Risk Takers. Our vast network of Vendor Partners can provide the support needed to help develop your program proposal. Available services include Actuarial, Claims Administration, Marketing, Legal, and Systems. We can even assist in expediting the implementation of your new program through our unique “Incubator” facility. Interested in learning more? Visit our website at We are also available via e-mail ( or by phone at the number below.

855-716-3660 The CHART Exchange 3001 Philadelphia Pike Claymont, DE 19703 • Fax: (302) 334-0325




he global programme received 179 applications, from which eleven successful teams have been selected to form the next cohort of the Lloyd’s Lab, beginning on 6 September 2021. Each of the teams chosen impressed an expert panel of Lloyd’s and market stakeholders during a competitive pitch process, where they presented their innovative insurance product ideas for the market. For the seventh cohort, the InsurTech start-ups have been selected based on solutions geared towards three key themes: claims, data and models, and cryptocurrencies. Additionally, for the second cohort in a row, the Lloyd’s Lab accepted wildcard entrants who presented solutions outside of the core themes. These start-ups focus on important areas such as anti-money laundering, robotics and construction. The teams will be working to create insurance products and solutions which can be adapted to the Lloyd’s market. Ed Gaze, Lloyd’s Lab Senior Manager, said: ‘We’re excited to welcome the

new teams to the Lloyd’s Lab for our seventh cohort. The decision to invite InsurTech’s with expertise in digital currency and cyber follows an increase in new and sophisticated attacks targeted at businesses, individuals and governments, which pose an increasing challenge for the insurance industry.

The teams selected for Lloyd’s Lab cohort seven: •

Sotera – uses machine learning to provide insurers with data to price risk on unusual objects such as antiquities and creates digital identities for legitimate objects to support better anti-money laundering and more sophisticated Lloyd’s has today insurance products. • Koop – specialises in commercial announced the robotics and autonomous vehicle next eleven developers & operators. They use InsurTech start-ups joining a modular, API-powered platform enabling competitive underwriting the seventh cohort of the at scale. Lloyd’s Lab innovation • ICEYE – provides near real-time accelerator programme. flood extent and depth data enabling deployment of resources The new cohort will and calculate overall flood losses focus on creating simpler with speed and accuracy. products for customers, • Jungle – develops an artificial including building solutions intelligence platform designed to related to cryptocurrencies.” resolve underperformance arising from operational complexity in renewable energy and industrial processes. • Falkonry – enables predictive We’re pleased to once again secure operational excellence for cutting edge InsurTech’s from across the world to work with the Lloyd’s Lab.” See Lloyd’s 7th Cohart Pg 36 TABLE OF CONTENTS




HOW SCHOOLS, SPORTS AND REC HAVE FARED THROUGH COVID-19 This article previously appeared in Insurance Business America By Bethan Moorcraft


verything came to what felt like a screeching halt in March 2020, when the World Health Organization declared the novel coronavirus (COVID-19) outbreak a global pandemic.

Insurance Consultants (SMIC), an Amwins company and boutique managing general underwriter specializing in general liability, accident medical, catastrophic, and special risks insurance programs. “Their risks had changed dramatically, so a lot of underwriters had to re-underwrite accounts. In many cases, there was a dramatic decrease in risk, which equated to some insurers returning premium or providing credits, as well as requests from insureds to flat cancel or nonrenew.”

into their policies. Again, many underwriters had to pivot and provide coverage for these risks in order to help insureds survive and stay afloat during the pandemic.

“We had to look at risks on an individual product line basis to analyze how each policy was written and determine if there was any exclusionary language that would prevent coverage for a virtual risk,” Walker explained. “On the liability side, there wasn’t anything that would exclude that coverage, but on the accident side, while the Education was one of risk actually decreased with remote/virtual operations, the first sectors to feel coverage still had to be written impacts of the pandemic. in via an endorsement.”

Education was one of the first sectors to feel the impacts of the pandemic. In the interests of public health and safety, schools were forced to cease in-person learning and switch over to remote/ virtual models. Once schools shut down, similar COVIDthe related suspensions trickled In the interests of public health down into related industries and safety, schools were forced As well as re-underwriting including interscholastic to cease in-person learning and policies, SMIC gave a lot of and intercollegiate sports, premium refunds and credits summer camps of all variety switch over to remote/virtual to insureds that were forced (recreational, amateur models.” to shut down or pivot their sports, religious, etc.), live operations due to COVID-19. entertainment, festivals, and special events. Furthermore, with schools, “We just had to be flexible,” Walker recreational camps, live events, told Insurance Business. “It’s unusual “When everything came to a halt, and even interscholastic and to ask an insurance carrier to be insureds had a ton of questions intercollegiate sports going virtual empathetic, but that’s basically around whether or not they had (at least to some extent) during the what everybody was asking of insurance coverage for a pandemic,” pandemic, many insureds faced new said Nate Walker (pictured), senior or heightened digital exposures that vice president at Special Markets were not specifically underwritten See How Schools Have Fared Page 26

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Asad Khalil, FIA - Managing Director Mobile: +44(0)7399 025 851 Email:


MULTI-CHANNEL CUSTOMER ENGAGEMENT – TODAY’S “MUST” FOR INSURERS By: John Rodgers, Rajeev Aggarwal, and Brian Nordyke


or some time, it’s been a fundamental truism that personal insurance companies need to engage with customers across multiple channels, meeting them wherever is most convenient for them. Indeed, a recent study on digital experience in insurance showed mobile app usage up 26 percent since last year. But we’ve entered a stage where the real progress and differentiating factor is seen in the ability to create a seamless experience across all channels and policy types. Typically, different lines of business—home, auto, collections

Brian Nordyke is Vice President, SSA & Company

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in the personal space—have had different client journeys, portals, and servicing models, leading to a disjointed client experience. But now, leading insurers are capable of linking these different products together under one unifying experience, while also taking cues from one area of the business to inform other areas. This is the essence of multichannel engagement. It enables customers to interact with their insurer seamlessly through various channels, based on their preferences – digital, call center, face-to-face, and so on. For example, a customer should be able to log a claim or mid-term

John Rodgers is COO & Managing Partner, SSA & Company


adjustment online, and request that an agent call them back at a convenient time. Some insurers are making progress in these areas, but there is still quite a way to go, as successful engagement requires a clear understanding of the moments that matter to their different customer segments, and well-integrated endto-end processes. We’ve seen that the ability to provide risk mitigation advice proactively when customers most need it and through the most appropriate channel is more and

See Multi-Channel Engagement Page 34

Rajeev Aggarwal is Head of Financial Services, UK, SSA & Company


YOU’RE FINISHED” - Benjamin Franklin

Benjamin Franklin: Scientist, philosopher, Founding Father … and business strategist? Mr. Franklin’s advice about adapting to thrive is especially appropriate in the highly fluid insurance industry. The CHART Exchange began with a good idea back in 2015: become the catalyst for growth in the U.S./London marketplace by facilitating interaction between domestic wholesalers/agency specialists and Syndicate underwriters. Large-scale networking events were held annually in elegant venues. While this approach produced results, feedback from the meeting participants indicated we could do much more to achieve our goal. As a direct result of this feedback, CHART 2.0 adopted a more proactive operating model intended to provide advocacy-level support to U.S.-based agencies seeking to place business within the London market. The expertise of our various Vendor Partners — when combined with new brokerage placement capabilities — gives CHART 2.0 clients access to a broad array of services they need to be successful. Interested in learning more? Visit our website at We are also available via e-mail ( or by phone at the number below.

The CHART Exchange, 3001 Philadelphia Pike Claymont, DE 19703

Phone: (855) 716-3660


Fax: (302) 334-0325 OCTOBER 2021


Bringing U.S. Entrepreneurship to the London Market The CHART/Wilson Elser strategic partnership combines the innovative underwriting philosophy of the world’s oldest insurance brand with the entrepreneurial mindset of U.S. agencies. For close to 40 years, Wilson Elser has helped organizations to better navigate challenging markets and realize improved combined ratios. We provide London- and Europe-based insurers with ready access to more than 60 discrete legal services delivered by nearly 800 attorneys in 34 strategic locations throughout the United States. Guided by a proprietary, systematic legal project management program, we help clients define strategies and achieve outcomes that align with agreed business requirements. We also implement dedicated Program Claim/Litigation Management services, creating value and driving efficiencies with respect to legal spend and indemnity. Wilson Elser is especially proud of its strategic partnership with CHART Exchange and our shared commitment to strengthening relationships between cover holders and risk takers on either side of the Atlantic. © 2017 Wilson Elser. All rights reserved. 567-17


NINE BEST PRACTICES IN DEFENDING BILLION-DOLLAR CLAIMS A SPECIAL REPRINT © Entire article contents copyright 2021 by CLM Magazine, a publication of The CLM. All rights reserved. By Stratton Horres & Karen Bashor


e must think the unthinkable and be ready for the unimaginable in 2021. We are all too familiar with the scenario from major news outlets: “Breaking news alert -- we report to you live from the scene of a mass casualty event involving [mass

About The Authors:

shooting, building collapse, wildfire, refinery or bomb explosion, or catastrophic transportation accident involving planes, trains, trucks or other] and it is believed that there are x fatalities and y injuries. Stay tuned for details.” As insurance carriers and defense litigators, we must be ready for any of these events from the moment they occur.

STEP ONE: Immediately create a defined team to handle the crisis at the outset. Immediately naming your legal team, or better yet having predetermined counsel for such crisis situations, allows the insured to be more prepared out of the gate than plaintiffs. Plaintiffs’ counsel may organize quickly, be aggressive and start making discovery demands immediately.

So, when you get the call, what do you do? Based on our experience, have SOME CRITICAL ACTIONS INVOLVE: developed a “nine best practices” protocol for guidance in handling the most difficult and complex situations. See Defending $Billion Claims Page 28 We discuss each step in detail below.


tratton Horres is an accomplished litigator who has more than 40 years of experience behind his practice, which is focused on crisis management and defending clients in catastrophic and high-exposure mass casualty events in virtually all areas. Cases have included mass shootings, commercial, products liability, health care, wildfires, explosions, transportation incidents of all kinds and construction collapse matters. In addition, Stratton frequently is engaged as monitoring counsel on behalf of insurers in these kinds of cases.


aren Bashor has significant litigation and trial experience with complex litigation, large transportation claims and catastrophic injury defense. She has successfully handled civil and criminal jury trials in state and federal court in Nevada and New Jersey. Prior to joining Wilson Elser, Karen was the first woman partner and first minority partner at a prominent Las Vegas law firm where she routinely handled large cases involving multimillion-dollar claims, including punitive damages, fraud and wrongful death. She has vigorously defended small and large companies and individuals across the nation. Karen also handled complex litigation in the area of medical malpractice involving individuals and facilities while at another large Nevada law firm, and has experience handling other civil litigation matters, including commercial litigation, premises liability and employment law.




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INITIAL ACCESS BROKERS: FUELING THE RANSOMWARE THREAT The article below was extracted from The Monitor newsletter, a monthly digest of Kroll’s global cyber risk case intake. By Nicole Sette, Keith Wojcieszek, Keith L. Novak & Laurie Lacono


During the last year, multiple VPN providers have announced critical vulnerabilities, many of which could be exploited by attackers to access sensitive data such as login credentials. Open RDP instances are often exploited by actors testing

Once access is achieved, access brokers advertise their network access on dark web forums, seeking to sell the validated credentials to ransomware operators, affiliates or other criminals who leverage the initial access to conduct a number of different cyber attacks such as data theft or encryption.

roll has observed an uptick in actors offering network access Threat actors who on the dark web, offer network access, particularly in the wake of known as initial access brokers, recent disruptions to the ransomware-as-a-service operate at the beginning of the (RAAS) ecosphere such as intrusion lifecycle by conducting the ban on ransomware reconnaissance to identify discussions in notorious underground criminal forums. networks with vulnerable UNDERSTANDING THE INITIAL ACCESS BROKER PROCESS

applications or devices, including Virtual Private Network (VPN) appliances, servers with exposed software vulnerabilities or open Remote Desktop Protocol (RDP).”

Threat actors who offer network access, known as initial access brokers, operate at the beginning of the intrusion lifecycle by conducting reconnaissance to identify networks with vulnerable applications or devices, including Virtual Private Network (VPN) appliances, servers with exposed software vulnerabilities or open Remote Desktop Protocol (RDP).

credentials via brute-force attacks such as password spraying or by actors testing credentials related to the target network which are publicly exposed in credential dumps on the dark web.

In particular, ransomware operators are known to purchase such listings and provide them to their affiliate distributors who then engage in the intrusion lifecycle to execute code on the target network for lateral movement, conduct privilege escalation and ultimately, mission execution in the form of data theft, data destruction or ransomware deployment.

This segmented approach of RAAS operators creates more layers of intermediaries between the operators and the actors on the

See Ransomeware Threat Page 42





DATA ANALYTICS: ‘THE HOLY GRAIL’ FOR INSURERS This article first appeared in Insurance Business America By Bethan Moorcraft


ost insurance organizations look the same at their core. They’re supported by the same foundations, they share the same core processes, they produce similar products, and they share the same goal of transferring risk while supporting a profitable industry. So, where can insurers differentiate themselves? Areas like product, pricing, and services spring to mind. But there is one element that underpins all differentiation, according to Amir Raskin, data and analytics product strategist at Sapiens International. That is: data analytics. “The game is changing,” said Raskin. “Doing the hard backoffice work of registering the policy correctly, working with the authorities, completing all the paperwork and so on, will soon become a commodity. That’s the 70% that all insurance companies share. The 30% differentiation will be in the pricing, the risk management, and the customer

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experience – and these are all areas that are enhanced with analytics. The real game changer in insurance is data analytics; it’s not core processes anymore.” Raskin gave the example of Airbnb, the online marketplace for lodging, homestays, vacation rentals, and tourism activities. He said Airbnb’s platform is “amazing” because of the

In the data analytics domain, the majority of effort today is strictly in developing bespoke solutions. But insurers are starting to realize they can buy data analytics and let it be managed through a portal, and they then can use the insights delivered to differentiate themselves from the competition.” data analytics and digital processes driving it, but the company hasn’t changed the core processes of the short-stay rental market. It is still underpinned by traditional scheduling and guest services like cleaning and the provision of essential supplies.

“The traditional back-office processes haven’t changed, but everything else has. That’s the 30% differentiation, and that’s what insurance organizations will start to focus on,” he told Insurance Business. “It’s not necessarily about changing all of your core processes; it’s about mixing what you already have into a completely new recipe. And I see people really starting to understand that smart integration of data analytics can provide major benefits to the insurance business.” As more and more insurers understand that data analytics solutions are key for business differentiation, this has driven further transformation within the actual domain of data analytics, according to Raskin. “Insurers have become used to buying core systems, often in the shape of packaged operational systems, and very few have imagined having bespoke and customized technology solutions,” said Raskin. “Meanwhile, in the data analytics domain, the majority of effort today is strictly in developing bespoke solutions. But insurers are starting to realize they can buy See Data Analytics Pg 27







n the 21st century social media has become the number one communication outlet worldwide. Social media’s are online constructs that allow individuals to express themselves and stay updated on current events in real time. Posts on socials consist of a widespread variety of topics, such as photos of family and friends, news articles, lifestyle habits, and my focal area; businesses and advertisements. Businesses have used a plethora of different marketing strategies over the last century. Some of these strategies include television and radio ads, signs and billboards, newspaper and magazine listings, professional endorsements, conventions, emails and phone calls, etc. Although, the newest and perhaps most useful

player in this marketing roulette wheel is social media. Businesses have been able to utilize social media as a marketing tool through accounts, influencers, portals, and advertisements. The question surrounding this new marketing concept is the interworking relationship between the realms of successful business and social media. I have attempted to address this relationship through a variety of research and statistical analysis. The first scope that I explored was the overbearing presence of social media on current society. According to DataReportal, a research and analysis website, there are currently 4.33 billion users on social media. This number accounts for 55% of the entire world’s population. Users also are said to spend around 2.5 hours a day on their socials. In addition to over half of the world being on social media for over two hours a day, it has been discovered that every user has


bout the author: My name is Luke Maguire, and I am currently a senior at West Chester University majoring in Economics and Finance. I pride myself on diversifying my knowledge and skill sets in numerous different aspects of life. In the future I strive to be able to work for myself, and use different acquired financial skills to sustain my livelihood and well being.

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about seven different forms of social media. Some example social media platforms are, Instagram, Facebook, Twitter, Snapchat, Linkedin, TikTok, and Reddit. With all of these different outlets and users, it is no surprise that businesses are generating success over these platforms. Taking a further look into what these platforms provide, we can find a variety of contributing success measures. One crucial factor of businesses involvement with social media platforms is the fact that it can be entirely free. Unlike purchasing an ad in the weekly paper or paying for a thirty second TV commercial, businesses can access and advertise on social media at no cost. This allows companies to allocate zero resources for marketing and advertising, turning over an immediate 100 percent profit for sales induced by socials. Although it can be free for businesses to operate on social media, they also have the option to pay in order to access more sophisticated accounts and push online ads, chat bots, and web portals. Looking further into the statistical results of social media marketing, I have gathered a few key metrics. According to Single Grain, a digital

An additional beneficiary that social media platforms provide businesses is the ability to generate credibility, referrals, reviews, and an extremely easy way to collaborate. Social media likes, comments, and shares are all ways in which companies have their brand accredited and distributed. Customers can not only leave feedback to companies but to each other as well, creating a more open and converse marketplace. All of this feedback ultimately provides businesses with greater levels of credibility, enhancing the brand name of companies. Another huge credibility booster and endorsement provider is social media influencers. Social media influencers consist of individuals with a large online following, of which companies can partner with in order to advertise to devote followers or fans. Examples of influencers include famous actors/ actresses, athletes, models, and artists. These influencers cannot only advertise on behalf of a business, but target a client base that is more

susceptible to purchase the endorsed item based solely on personal loyalty. This concept of influencers demonstrates the ease and efficiency of collaboration available through social media platforms. Other forms of collaboration include brands accrediting each other and/ or working with one another. For example, a sports retailer may post with a health and wellness supplier in order to diversify client bases and share like minded products. Companies can also do smaller things such as comment on another companies post stating their satisfaction of the listed product or idea. This collaborative ability ultimately allows companies to work alongside one another with little to no prior relationship. Social media has ultimately developed into an online roundtable of products and ideas for businesses and users. Not only are companies able to market their brand, but they are able to do so on a much more personable level. This allows TABLE OF CONTENTS

companies to develop customer loyalty with the simplicity of a like or comment. Companies are not only able to be more personable, but are granted with a gateway of creativity through social media. Businesses are able to shy away from boring ads and messages, but instead use intriguing aesthetics and interactive marketing schemes. Retailers can post fun giveaways and promotions, restaurants can post daily specials and events, the realm of opportunity is endless. The world as we know it only grows more sophisticated by the minute. With young minds entering the work force and integrating new technology into business, it becomes imperative for companies to adapt to societal nuances. Social media has become one of the most powerful marketing tools to date and will only continue to evolve. Old dogs will forever be able to learn new tricks, as will businesses. Do not disservice your company, yet embark on the top low-risk international culmination of online individuals, social media. OCTOBER 2021


This file is licensed under the Creative Commons Attribution-Share Alike 4.0 International license.

marketing agency, 73% of marketers say social media is a useful marketing resource. Backing this statement, it has been discovered that social media chat bots receive an open rate of 70%-80% while traditional emails receive an open rate of around 25%. On top of this, most online activity in the 21st century is primarily done on mobile devices. This ties directly into social media usage due to the fact that 80% of all social media is conducted on mobile devices.

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nsurTech tools have driven a lot of the efficiencies and time/ cost savings being realized lately in insurance. They enable much of the workflow streamlining and operational improvements happening in the industry. Most insurers have come around to seeing the advantages of technologically transforming their business. However, I get the feeling that many of us are still not aware of the impressive depth and breadth of meaningful change that methods like robotic process automation, artificial intelligence and machine learning can attain. In fact, it can touch and improve every stage of the policy lifecycle and reach each area of your business.

Many (Digital) Hands Make Light Work Making technology work for you is more important than ever these days. Like other employers, insurers on both sides of the pond are struggling with a shrinking labor force. Early retirements, increased movement between companies/ positions to perceived greener (more remote-friendly, presumably) pastures and even people just leaving work entirely – all have become commonplace in the movement variously called The Great Resignation or The Great Reprioritization. Workflow automation is not intended to put people out of jobs. The ideal situation is that it makes manual processes easier, and then the team members who were saddled with laborious tasks can be reassigned to more meaningful endeavors. But it

works just as well if folks are leaving or you are facing a candidate shortage that leaves spots unfilled. SLASH DATA ENTRY & DRIVE EFFICIENCY Start at the very beginning: a prospect or policyholder goes to your website (as is increasingly likely, rather than picking up the phone) for information, a quote or ID card. Do you have: • • •

A chatbot in place to facilitate? Self-serve options for today’s DIY, want-it-right-away consumer? Email routing to simplify and speed responses?

If not, that’s the start of a pain point for an existing customer or a turningaway point for a potential one. See The Great Resignation Pg 32


bout the author, Mike Fieseler: Mike’s focus is on helping clients achieve operational efficiencies and cost savings. His career has spanned IBM, ARC, DataTrak, and for the past 10 years EOX Vantage. Last year he achieved the CPL - Certified Program Leader designation through Target University of the Target Markets Program Administrators Association (TMPAA).




24 OCTOBER 2021



platforms not being taken advantage of, such as TikTok or Instagram.

HOW CAN THE INSURANCE INDUSTRY APPEAL TO GEN Z? space, which works to a certain degree,” Zeornes mentioned. “The problem is Gen Z doesn’t necessarily see or hear that from existing industry professionals.” “Our talent study highlights that the essence of strategic intent is resource allocation,” said Pieroni. If you have the strategies in place to attract young talent - such as marketing spending, providing access to mentorship programs and refining how to approach younger generations on an annual basis, you are more likely to be successful.

“Facebook may be more appealing for baby boomers and older millennials and TikTok gears more towards Gen Z. We haven’t figured out a good way to utilize TikTok in the insurance space but it’s a big opportunity,” said Zeornes. Instagram is the in between of the social media marketplace. The platform is more developed commercially, but the insurance industry still lacks an overall social media presence.

Pieroni noted the alignment digital maturity has with attracting new talent – something he described as a “profound correlation.” New graduates don’t want to work with obsolete technology or deal with paper anymore.

Generation Z, colloquially also known as zoomers, is the demographic cohort succeeding Millennials and preceding Generation Alpha. Researchers and popular media use the mid-to-late 1990s as starting birth years and the early 2010s as ending birth years. Most members of Generation Z are children of Generation X.” - Wikipedia

The industry could also make better use of social media platforms to promote authenticity. Knowing Gen Z does not go to Facebook for information, there are other

“Baby boomers have been running insurance for 40 years. The fintech revolution 10 years ago changed the banking community and that’s what’s happening right now with insurance. It’s one of the most disreputable industries in our economy and a lot of it is still run-on legacy systems.”

“Over the next couple of years, it will be interesting to see how insurers take advantage of social media experiences,” said Zeornes.


It’s not about how much money you invest into technology it’s about where you invest it. Being highly digital lets you deliver good pricing, products, and experience in an innovative way “You have to have state of the market capabilities to attract talent whether you’re a carrier, broker or reinsurer,” said Pieroni.

“Gen Z is more open to change than any other generation,” Zeornes added. “They have the opportunity to build on what previous generations have done, revolutionize and change the world of insurance. It’s the responsibility of the current people in the industry to recruit new talent with fresh ideas - the future of insurance lies on the shoulders of Gen Z.”



REPORT - SMIC Continued From Page 10

HOW SCHOOLS, SPORTS AND REC HAVE FARED THROUGH COVID-19 their insurers, and I think a lot of insurers were willing to do whatever they could to help each individual insured. At SMIC, we looked at it on an individual basis, providing solutions depending on what state the insured was in and how much their risk had changed.” LIGHT AT THE END OF THE TUNNEL Three-quarters of the way through 2021 and there’s now some light at the end of the long COVID-19 tunnel. Schools, sport, and recreational organizations are slowly reopening, armed with new best practices and safety protocols to keep everybody safe. However, with the Delta variant of the coronavirus actively spreading across the US, the big reopening remains “a moving target,” according to Walker. Some insureds have had to apply the brakes and reassess how they’re keeping students and

26 OCTOBER 2021

athletes safe through this most recent wave of the pandemic.

coverages or reducing their insured limits.

“Over the past year, insureds have “We’ve seen organizations trying really learned how to tighten up to cut costs wherever they can their risk management protocols,” because they’ve suffered a big drop said Walker. “Almost all carriers in revenue over the last 18 months,” now have a communicable disease Walker commented. “Many insureds exclusion or an organic pathogen are looking to save on premiums, exclusion on and if they their policies, haven’t been Over the and insureds happy with their past year, understand that current carrier’s insureds have [a pandemic] is response, service, really learned how not a covered or coverage risk. So, they’ve throughout to tighten up their had to pivot in the pandemic, risk management terms of how they’re definitely protocols,” said they operate […] shopping the and rely heavily market. At SMIC, Walker. “Almost all on what the we’re willing to carriers now have individual states work with our a communicable are mandating and insureds and disease exclusion or what the CDC is help them in any advising in order an organic pathogen way we can as to keep everybody they try to get exclusion on their safe. It’s also back to ‘normal’ policies, and insureds vitally important operations and get understand that [a that insureds their participation maintain tight numbers back up.” pandemic] is not a communication covered risk. “ and be very With insureds transparent shopping the with parents of students, athletes, market, retail agents are also looking and campers, so that everybody to write new business. Walker added: is comfortable with the safety “That has created a big opportunity measures and protocols they’ve put for a lot of market movement in this in place.” space. There are also carriers that, depending on the line of business, There are some concerns in the have been very aggressive in 2021, underwriting community that and are underwriting and using cash-strapped schools, sports, and competitive rating to try to win new entertainment businesses might look business. There’s a lot of movement to save costs by removing insurance going on.”



DATA ANALYTICS ‘THE HOLY GRAIL’ FOR INSURERS data analytics and let it be managed through a portal, and they then can use the insights delivered to differentiate themselves from the competition. But they have to start climbing that mountain from the very first percent by developing the basics, which are practically the same for every company.” Data analytics, in that sense, will be a product for insurance companies that will need to be managed by business-minded professionals as opposed to strictly technical experts. It is the business-minded professionals, according to Raskin, who understand that “data is an asset that can be ameliorated over time” through targeted analytics. “Analytics is the Holy Grail,” he stressed. “But to reach that Holy Grail, you’ve got to have the data, which is 70% of the effort. If you’re excelling with data, you will excel with analytics and you will gain a competitive advantage.”



ross written premiums increased to £20.5bn (HY 2020: £20.0bn) due to an increase in premium rates, high customer retention and new growth for the first time in four years. Premium rates increased by 9.9%, continuing the trend of 15 consecutive quarters of positive rate movement. The combined ratio of 92.2% (HY 2020: 110.4% and 97.0% excluding COVID-19 claims for FY 2020) is a solid improvement with a 4.8 percentage point reduction on the previous year, excluding COVID-19. These results demonstrate the substantial turnaround of Lloyd’s profitability and performance. Lloyd’s continued to provide significant support to its customers around the world, paying £9.4bn of claims, including to customers impacted by COVID-19 where 80% of TABLE OF CONTENTS

the claims notified to date have been paid. Improvements to the combined ratio have been driven by notable reductions to both the attritional loss ratio and the expense ratio. The attritional loss ratio of 50.5% (HY 2020: 52.6%), is a 2.1 percentage point reduction from the ratio reported for the first six months of 2020. The expense ratio of 35.8% (HY 2020: 37.7%) is a 1.9 percentage point improvement, and 3.7 percentage points improvement since 2017. The reduction in operating expenses remains a focus of Lloyd’s digital transformation programme. Lloyd’s maintains strong capital and solvency positions, with net resources increasing by £2.6bn to £36.5bn, reinforcing the exceptional strength of Lloyd’s balance sheet

See Lloyd’s Profit Report Pg 40 OCTOBER 2021


ANALYSIS - WILSON ELSER Continued From Page 15


Engaging experienced lead counsel to ensure legal efforts are coordinated at the outset and to act as the central point of contact for all retained to assist in the defense of the insured. Working with local, state and national authorities in the investigation of the incident. Determining the best local counsel to retain and lock them in before others do. Discuss with them potential key players and issues to be addressed in the near future that may be jurisdictionspecific. Retaining the best criminal attorneys in the local jurisdiction for consultation and coordination, if criminal charges may be involved. Speaking with the insured and as many individuals/employees/ agents and witnesses as possible that could have relevant knowledge to help guide the investigation and determine key issues that may be raised. Preserving critical evidence

28 OCTOBER 2021

and testimony for accuracy and establishing a solid chain of custody. Identifying the expert specialties required and locking them in before they are retained by others. Researching the jurisdiction where the incident occurs and the applicable law (possible multi-state application) to inform additional efforts.

STEP TWO: Engage a crisis management team so that you can control your part of the narrative. Undoubtedly, it will be a national or even an international story, and the insured’s ability to get in front of the story is critical. Some important actions to consider here are:

to comment, if the legal team desires. It’s important that the PR team closely coordinates with the legal team and does not make any public statements without prior approval. Consult with the PR team about legal strategy and potential public perceptions to help adjust strategy and execution when it comes to court filings, hearings, and related litigation action and inaction. STEP THREE: Define the defense strategy plan, or at least the key hypothesis of the defense strategy, and be focused and consistent in the execution of that plan. This will ensure that all teams are strategically aligned in the insured’s defense and eliminate competing approaches. •

The court of public opinion is the jury, so engage an experienced crisis management or public relations team to manage events internally and externally. When potential jurors hear the matter years later, their initial impressions and memory of the incident will include your narrative, and contemporaneous public opinion can be used strategically to your advantage. Events will move rapidly, so having a preselected stable of firms and teams is a smart strategy ‒ failing to plan is planning to fail. Ensure that your public relations (PR) team has good relationships with key contacts in the media so that you have the pulse on the latest developments and will be given a fair opportunity TABLE OF CONTENTS

The defense and crisis management teams must work together to create a clearly defined strategy as they play off and support one another. Organization and coordination here is critical, from the big picture down to the details. The strategy is the North Star of the defense and should be consistent and revisited periodically to ensure stakeholders are consistently updated and necessary tweaks are universally executed. Engage the insurance tower from the beginning so that all levels of insurance support the strategy and are introduced to the legal and crisis management team, with key points of contact shared. Schedule regular all-hands calls with the insured, defense team

Creator:Michael Marcovici, CC BY 3.0 <>, via Wikimedia Commons

One Billion Dollars - It’s A Lot Of Money...,

and carriers so that everyone is apprised of rapidly moving developments and remains on the same page with opportunity for input by all. Consider whether the insured has indemnity from other key parties and make demands to defend the insured as soon as practical. Additionally, if opportunities to tender are available, explore these to help control the investigation and potential litigation. Consider a joint defense agreement with other parties if appropriate.

STEP FOUR: Determine the insured’s exposure to better understand risk

and evaluate strategy. The level of exposure or number of potential plaintiffs and defendants are key variables in adjusting the strategy. Determining exposure must be done holistically and precisely.

• •

• • •

Define victims, fatalities and injuries to assess damages. Research media and social media for information on (1) victims to determine injuries and backgrounds, (2) potential witnesses that may be relevant to the investigation and likely litigation, and 3) other potential claims and claimants to incorporate into the exposure analysis.


Categorize injuries to inform damages and bifurcate plaintiffs. Prepare a preliminary damages model, ideally automated so that it can be updated continually and optimized. Based on these points, as best as possible determine potential exposure and note critical caveats and outstanding information that could impact the evaluation.

STEP FIVE: Create leverage for negotiations and fracturing plaintiffs. Understanding your strengths is key in improving your negotiation and settlement posture. See Defending $Billion Claims Pg 33 OCTOBER 2021



For insureds that need forensics, incident response, or proactive security services


BlueVoyant is a pure play cybersecurity firm


WE GET IT – we do it faster and better

Austin Berglas | Global Head of Professional Services Vincent D’Agostino | Head of Cyber Forensics & Incident Response Jennifer Rothstein | Business Development Head, Insurance & Legal Breached: | Info:


ave you ever wondered what would happen if someone ever got a hold of your medical data? Personal information meant only for your eyes and the eyes of certain authorities? It is not as if you can simply ‘retrieve’ the data, or cancel it like an online order when your account information falls into the wrong hands. Imagine this on a national scale— before taking into account the fact that this is a global fear.

reported that there are 6,090 hospitals as of 2019. Additionally, the total admissions to all the hospitals around the nation have been recorded to be 36,241,815 (HERE.) One can only wonder how much this number increased within the COVID-19 pandemic, as the data only accounts for one year. Healthcare is a vital aspect of a person’s life. With all of these patients and even more on a global level, an individual’s health is not a healthcare professional’s only concern. A person’s safety and the safety of the information they entrust to their doctor(s) is also of the utmost priority.

In the U.S. alone, the American Hospital Association (AHA) has

Breaches in healthcare systems can endanger multiple people, including



patients and workers, as well as a healthcare institution’s functionality itself. The information stored in hospitals and such institutions can render a person vulnerable, especially if leaked or abused by the wrong person. According to Bitglass, in 2020, healthcare data breaches totaled approximately 599, an increase of almost 55.1% from 2019 (HERE) Millions of people were affected by these breaches, and thousands continue to be affected by cyber security breaches to this day. Healthcare breaches can not only put identifiable information —

See Healthcare Cyber Breaches Page 38


bout the author: I am a Junior at Hunter College, working towards a degree in both Biology and Computer Science. From the very start, I had been interested in working with technology in the healthcare field (specifically, bioinformatics.) It was not until more recently that I began pursuing a career as a Physician Associate, partially due to personal experiences I’ve had throughout the pandemic. Regardless of this change, one of my goals for the future is to aid in the advancement of cyber security in whatever institution I work in, and in healthcare in general. Taking a course related to cyber risk has only furthered my interest, and I am excited for the outcome. I believe that not only is it important for healthcare to be accessible, but also secure for everyone, and cyber security plays a vital part in that. I am currently trying to gain more knowledge regarding cyber security, as well as gaining more experience in the healthcare field.




ANALYSIS - E.O.X. VANTAGE Continued From Page 23

FIGHT “THE GREAT RESIGNATION” WITH THE GREATER DIGITIZATION! Next, let’s say you receive a quote request. The old-school way to proceed was a spreadsheet nightmare. Some insurers are still worksheet-heavy when they don’t have to be. They struggle with ungainly, difficult to manipulate files that contain many hundreds of data points. Data extraction/capture and reentry from emails, attachments, files and other systems makes for a messy, timewasting and redundant exercise. Consider it a ‘must-do’ to switch this up from the manual way of doing things. You can auto-pull relevant data from nearly any file, run it through an optical character recognition (OCR) tool for automatic identification and quality control, and send it directly through to your agency management system. There are even ways to auto-check for instances when the sender marked both options of a binary question for which the answers are mutually exclusive (yes/no), and similar contradictory situations. The system will send an alert to a team

32 OCTOBER 2021

member to review and reconcile any such ambiguous result. SIMPLER & SPEEDIER DATA FUNCTIONS Automation lets you get more data from only a few data points. Don’t ask your prospect to fill out reams of information that you can find yourself. It’s as off-putting and frustrating as it is unnecessary.

The lesson is: Use automation to drive data capture, entry and analysis. Everything from first contact to application through underwriting and renewal can be enhanced by automation.” Just have them input a few of the most basic points. From there, the rest can be searched for automatically through databases, archives and other sources.


These methods will clear up so many human errors, accuracy rates go through the roof. It will also speed up the process enormously and make life much easier for your prospects. Plus, it easily makes all data consistent and correctly formatted. Avoid lots of headaches downstream by ensuring quality data upfront! FROM 1 FILE/DAY TO UNDER 2 HOURS One of my clients is currently transforming their business through such an automated process. The results are remarkable. Doing it the old way, they were laboring through about 28 applications a month, or approximately one per day. It’s no wonder, when the files they had to deal with held 500 data points or more. They knew they had to correct this situation. Now, they can zip through the workflow in less than a couple of hours – and that process can be repeated, all day every day, for true 24/7 operating capabilities. They are amazed at their new quote-tobind rate of speed. It goes to show, computing power delivers scalability that human hands and minds just can’t match. Not to mention, all the data from the application stage onward automatically flows into their AMS, tied to the policyholder’s account. The system provides universal See The Greater Resignation Page 44

ANALYSIS - WILSON ELSER Continued From Page 29


• •

Review and analyze all legal defenses to improve the insured’s legal position and potential outcomes. [For example, where applicable, consider the Protection of Lawful Commerce in Arms Act Congress (“PLCAA”) passed to protect firearm retailers and manufacturers from certain lawsuits seeking damages arising out of the criminal conduct of third parties. This PLCAA defense could be put forward at the motion to dismiss stage and could require the dismissal of the entire suit. In Re Academy Sports, Ltd. d/b/a Academy Sports + Outdoors, TX. S. Ct., June 25, 2021.] Determine if you can remove to federal court or transfer to an out-of-state court, as that is traditionally more advantageous for defendants. However, as this is a jurisdiction-specific inquiry, be sure to consult local

counsel for their knowledge and experience. Use motions to dismiss and preliminary motions where they can be credible and available tools to create leverage. Consider outcome-determinative motions as early as possible and weigh the potential impact on the litigation and potential to advance resolution, even if unlikely to be successful in court. Consider declaratory actions to go on the offense and give plaintiffs’ counsel something to deal with and think about, while creating leverage for the defense. Consider the likelihood of potential multidistrict litigation and coordinate with local counsel in respective jurisdictions ‒ ideally local counsel from the regional offices of a large national law firm ‒ for organized and orchestrated execution in litigation strategy.

Be creative and don’t be afraid to test new strategies. This is a billion-dollar claim after all, and there is a lot at stake for the insured.”

STEP SIX: Develop a resolution strategy that aims for global resolution to the extent possible. •

and fragmenting plaintiffs; alternatively, if plaintiffs are organized and not fragmented, identify their leaders for purposes of communication and negotiations moving forward. Use your relationships with plaintiffs’ counsel to obtain as much information as possible to support and/or supplement your own investigation, and check your evaluations on an ongoing basis. • Use focus groups and mock trials to help test defenses, evaluate damages and direct future strategy. Rely on early mediations to remove claimants/plaintiffs. Research mediators that have a track record for success with such complex litigation in your jurisdictions, mediators that all parties respect, to help the mediation succeed. Work with the mediators to structure the mediation in a way most advantageous to resolution. Align insured with the insurance tower so settlements are not delayed and are agreed on by all.

Consider the resolution strategy after developing leverage TABLE OF CONTENTS

• •

See Defending Billion Dollar Claims Pg 36 OCTOBER 2021


ANALYSIS - SSA & COMPANY Continued From Page 12


Mark Lann Phone:

302-765-6070 Email:

MULTI-CHANNEL CUSTOMER ENGAGEMENT – TODAY’S “MUST” FOR INSURERS more critical to delivering value and keeping customer loyalty. For example, some insurers in California and other western states are using risk characteristics of properties to proactively inform policyholders of increased wildfire risk and ways to mitigate that risk, all through mobile apps and other user-friendly communication methods. While once it would have required an inperson inspection to communicate this kind of advice, carriers can now proactively provide value to clients while also protecting their loss ratio. Accessibility can go a long way toward building the perception that the insurer is providing value. Regardless of which lines they carry, all insurers will increasingly need to tailor their communication channels to customer preferences, enabling clients to provide information about claims in a variety of new ways while proactively communicating at the right touchpoints. Another level up, as insurers invest in digital

34 OCTOBER 2021


transformation, analytics and algorithms will be needed to anticipate questions and proactively send updates through the preferred communication channels that are identified.

Other algorithms are being developed, some outsourced and some homegrown, that will allow seamless interaction with customers and will doubtless change the modes through which customers respond. These tools can also help companies learn more about their customers and allow for deeper relationships with clients—a long-term benefit that will keep on giving. Looking at the commercial insurance world, multi-channel customer engagement will take many forms. Carriers will need to deploy portals and engagement channels that can bring together the broker and the insured in one conversation. This will provide a direct line of communication to insurers and create a more seamless conversation among multiple parties. Brokers will also need their own separate interaction channel with carriers and reinsurers that will make it easier for them to submit, quote, bind, and service multiple clients within one portal. Given the complexity and breadth of commercial risks, providing

the right insurance. Or Zemble, a ‘one-stop shop’ for clients In addition, as mentioned, the need a collaboration tool that enables and brokers to view all policies for digitally enabled risk prevention insurers to create a personalized and claims, especially across is higher than ever before. Digital and flexible digital experience multiple lines of business, will literacy for carriers, a focus on both for customers and assorted be challenging. This scope of customer relationship skills, and external stakeholder groups. capability not only requires client-focused project management connectivity and data syncing skills will be all be critical factors across multiple in the success of Digital literacy for carriers, a focus on products, but also these future customer across multiple customer relationship skills, and client- engagement models. It geographies and, will also be necessary focused project management skills potentially, corporate to adjust recruitment will be all be critical factors in the success of entities. However, as practices to attract these future customer engagement models. commercial clients are the right tech and It will also be necessary to adjust recruitment customer engagement beginning to demand practices to attract the right tech and customer talent. Incumbents the same experience engagement talent. Incumbents who use data who use data to they’ve had on the to better understand their target segments personal insurance better understand side, companies will their target segments and shift from the traditional mindset to a find it a necessary and shift from the “user first” approach, while embracing the and worthwhile traditional mindset to opportunity to build their organization’s investment. Carriers a “user first” approach, capabilities by offering simpler, customized, that dramatically while embracing the user-friendly solutions will remain competitive increase the ease opportunity to build and successful going forward.” of doing business their organization’s for their clients and capabilities by offering brokers will win many simpler, customized, Where are these imperatives times over in this new market. user-friendly solutions will remain coming from? The simple truth is competitive and successful going that the emergence of insurtechs Insurers must prioritize the forward. and parallel trends in other implementation of these digital consumer-facing industries have tools on the front- and backinsurance customers as well ends and use them to deeply understand customer expectations as agents demanding a higher ABOUT THE AUTHORS standard of digital engagement and how they change. In short, John Rodgers is COO & Managing with simplified, user-friendly they need to determine the best Partner, Rajeev Aggarwal is Head solutions throughout the way to use the technology to of Financial Services, UK, and Brian customer value chain. With deliver their products. Examples Nordyke is Vice President, at SSA evolving customer demands, of such tools include Salty, which & Company, a global management both commercial and personaluses AI and machine learning to consulting firm. They can be lines firms need to invest in the analyze multiple data sources reached respectively at jrodgers@ tools necessary for multi-channel for information about the buyer, raggarwal@ customer engagement. and the purchase, and sorts, and bnordyke@ through multiple carriers to offer




NEWS - LLOYD’S OF LONDON Continued From Page 9

Continued From Page 33


manufacturing organisations through discrete and composite digital twins of operational systems at edge, site or cloud. YEO Messaging – is a secure private messaging platform where the sender can always be assured of privacy and control. Hubvia (Brush Country Claims) – have an insurtech solution built to streamline the P&C claims handling process by providing ultimate claims control and expedited time to settlement. Merkle Science – are a predictive cryptocurrency risk and intelligence platform helping companies and governments detect, investigate, and prevent illegal activities. Superscript – combine broking and underwriting expertise with technology and data science to create relevant insurance solutions for modern businesses. BirdsEyeView – harness space-data and innovative parametric solutions to provide uncomplicated insurance for severe-weather risks.

36 OCTOBER 2021

Be prepared for outrageous demands, and deal with them accordingly. Do not let frivolous demands deter your strategy and process.

STEP SEVEN: Be creative and don’t be afraid to test new strategies. This is a billion-dollar claim after all, and there is a lot at stake for the insured. • •

Think out of the box to overcome obstacles. Negotiations should focus on the big picture, not minutia. Compromise where possible to preserve the resolution. Consider using experienced claims administrators, as they can inform the insured and collaborate well with others to help facilitate resolution. Try to create a global conceptual framework for resolution ‒ a holistic approach makes the plaintiffs work together ‒ and make tradeoffs where possible. TABLE OF CONTENTS

• •

Negotiate details and always leave an “out.” Be aware that the insured may not want to be involved in the adjudication of individual claims.

STEP EIGHT: When settlement is finalized, carefully message the outcome. •

• •

Plan to issue a joint message with plaintiffs’ counsel to ensure they are on record in support of the settlement. Promote to the public that the outcome of the settlement is fair and equitable. Time the announcement to coincide with key events. Coordinate with courts to finalize the resolution.

STEP NINE: In the aftermath, be ready for anything and be prepared for everything. Regardless of all the planning and efforts, a global resolution may not be possible. More often, stragglers will exist and opt-outs will happen. Deal with them as they occur. As with most litigation, there will be unforeseen difficulties, but if you adopt these best practices, maintain adherence to your strategy and plan, and remain flexible, you will achieve a better outcome.

For more information, please contact us at:

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including social security numbers or addresses—at risk, but also healthcare data such as Medicaid ID numbers, medical records/ treatments, and an individual’s health insurance. Such breaches are often caused by phishing (a form of digital deceit- like fraudulent emails - used to trick people into giving out personal information when they click

One should make sure to authenticate where the caller is from and listen carefully to make sure said callers are verifying their own personal credentials (such as the authority they have that allow them to harbor the information they are asking from you.) It is also important to note that healthcare representatives will likely not ask for an individual’s social security number, and have multiple ways to verify a person’s

38 OCTOBER 2021

on what looks like to be a legitimate link,) hacking, incorrect disposal of Protected Health Information (PHI/ePHI), and can lead to the destruction of databases, along with the theft and leaking of confidential and sensitive information. (HERE) Along with cyber security breaches, certain information in healthcare



databases can be accidentally leaked by patients/consumers, as well. Voice phishing, or ‘telephone scams,’ is a form of attack on civilians on a daily basis. It is important to make sure to verify the identity of seemingly important calls, especially when it comes to insurance, Medicaid, or other health-related inquiries.

identity other than using sensitive information. Similarly, a person can keep crucial information safe in the hands of healthcare institutions by staying aware of what information they are giving out and how it is being used. It is also important to use strong passwords when making accounts, especially when it comes to Medicaid and/or insurance. It’s much more secure to have multiple, complex passwords than the same, easy passwords. It is also important to avoid saving passwords in technological devices such as laptops or phones, as they are also susceptible to breaches, hacks, and malware. Besides an individual’s attempt to secure their data, there have been multiple advancements in cyber security, especially in the healthcare field. Technology itself has become an integral part of healthcare and continues to expand in the industry. For instance, being able to text your pharmacist or a doctor about your ailments and medication, or getting your temperature taken by a tablet screen that only requires you to stand in front of it as if you were taking a picture. As technological advances make diagnosing, treating, and collecting data from a patient easier and more efficient, it is important for the cyber security aspect to advance with it. In the face of external or internal

breaches that are difficult and costly to recover from, new encryptions and better modes of storing data have been developed, and are still being improved and expanded upon. It goes without saying, though, that more (and faster) improvement is both desired and necessary. As of 2017, it has been mandated by the FDA that healthcare institutes ensure their devices are able to be updated with security patches throughout their lifespan. (HERE) However, regulations on healthcare cyber security had begun long before that, specifically, in 1996 the Health Insurance Policy and Accountability Act (HIPAA) was passed. (HERE) This act enabled stronger protection of health information, especially how it is used, and stored. It is also important for hospitals to invest more into their cyber security—as well as take multiple factors into account. This can primarily be done through risk-based security, where cyber security administrators would have to run through different types of breaches, either from experience or educated assumption, and determine a solution. (HERE) Such an approach is common within the cyber security industry, throughout multiple fields aside from healthcare. It is not a surprise that most institutions have already taken this approach to develop safer ways of storing patient data.


Further preventative measures can be and have been taken through proper training of healthcare staff, as well as the authentication of administrative staff, especially for those who work with patient information. It is important to assess and determine (multiple times) whether or not administrations have appropriate response plans for any possible attacks, as well as implementing stricter reinforcements, such as the Health Information Technology for Economic and Clinical Health (HITECH) Act of 2009 that enforced stricter penalties unto violations of HIPAA, as well as strengthening aspects against breaches and creating safer health information usage. (HERE) The HITECH act is also unique to healthcare cyber security in the sense that it is focused on, and emphasizes, the technological aspect of cyber security and ensures that the technology used in healthcare is as secure as the data to be stored. Moreover, as aforementioned, it is important for patients and healthcare benefit users to stay aware and knowledgeable about where they are putting out their information and to whom. As both cyber security and the healthcare industry continue to positively pivot into the future, healthcare cyber security itself is also evolving in different ways to ensure that people not only stay healthy and safe but also feel secure about what they are putting out into society.



NEWS - LLOYD’S OF LONDON Continued From Page 27

LLOYD’S REPORTS STRONG 2021 HALF YEAR RESULTS WITH £1.4BN PROFIT AND 92.2% COMBINED with central solvency and market solvency ratios of 218% and 170% respectively (FY: 2020 209% and 147%). John Neal, Lloyd’s CEO, said: “In an uncertain world Lloyd’s remains acutely focused on supporting our customers when they need us, and in the first half of 2021 we have paid out nearly £10bn in claims to help the recovery of businesses and economies globally.

on improving the culture in the market, the Future at Lloyd’s digital transformation, and sustainability, climate and inclusion which underpin our purpose.” The key figures reported in Lloyd’s 2021 Half Year Results are: • • •

“Against this backdrop, Lloyd’s has successfully repositioned the market for sustainable, profitable growth as evidenced in this strong set of financial results. I am encouraged to see that market performance has improved as a result of our ongoing remediation efforts. This, as well as our exceptionally strong balance sheet, brings Lloyd’s performance in line with our global peer group. “Alongside performance, we are making great strides on all our strategic priorities which focus

40 OCTOBER 2021

• • • •

• •

Gross written premiums of £20.5bn (HY 2020: £20.0bn) Profit before tax of £1.4bn (HY 2020: loss of £0.4bn) Underwriting profit £1.0bn of (HY 2020: loss of £1.3bn) Combined ratio of 92.2% (HY 2020: 110.4%) Underlying combined ratio of 85.4% (HY 2020: 89.8%) Attritional loss ratio of 50.5% (HY 2020: 52.6%) Net investment income of £0.6bn, 0.8% return (HY 2020: £0.9bn, 1.2% return) Net resources of £36.5bn (FY 2020: £33.9bn) Central solvency ratio of 218% (FY 2020: 209%)




loyd’s, the world’s leading marketplace for commercial, corporate and speciality risk solutions, today sets out how the insurance industry will partner with critical industries to support and accelerate the transition to a low carbon economy, with the launch of its new report Insuring a sustainable, greener future. Alongside the report, Lloyd’s has today set out a climate action roadmap which includes a number of wide-ranging, practical steps that will help accelerate the transition of multiple industries to net zero carbon. Many of the actions set out in the roadmap will be delivered at pace in 2021, and through the Lloyd’s-chaired Sustainable Markets Initiative. To help accelerate the pace of change, Lloyd’s will work with critical industries to improve the knowledge around risk landscapes and help the insurance industry adapt to meet changing customer needs, as the world transitions to a sustainable future.

OUR TEAM IS THERE FROM THE START TO THE FINISH NSM Insurance Group Comprehensive Insurance Coverage for: Social Services I Addiction Treatment I Professional Liability Staffing Firms I Workers' Compensation I Collectible Vehicles Coastal Condo Associations I Breweries and Wineries Sports and Wellness I Specialty Aviation






INITIAL ACCESS BROKERS: FUELING THE RANSOMWARE THREAT ground who carry out the attack, decreasing the risk of exposure and law enforcement apprehension. KROLL OBSERVATIONS In incident response investigations, our digital forensic examiners often identify a single suspicious VPN or RDP log-in that predates the ransomware activity by several days, weeks or, at times, months. That first suspicious log-in is likely to be the initial access broker

testing credentials and identifying a “match” for a username and password combination. The user account or internal user’s computer that the unauthorized actor first lands on as a result of the log in success is what investigators associate with “patient zero” for the incident investigation. Subsequent analysis of the target organization domain has frequently identified that the credentials related to “patient zero” were readily available

in various credentials dumps posted to the dark web. EXAMPLE ENGAGEMENT Multiple times in the past year, Kroll has observed threat actors in dark web forums sharing large datasets related to confirmed credentials for various VPN applications. In August 2020, a technology company experienced a ransomware attack. That same month, a large dataset of VPN credentials was briefly posted on a dark web forum. Kroll’s identification and review of that dataset identified multiple account credentials available from the organization’s employees, matching up nearly 100% with the accounts that the threat actors had accessed during the attack. This illustrated the likelihood that

Figure 1 illustrates an auction page in a dark web marketplace advertising RDP/VPN credentials.

42 OCTOBER 2021


actors conducting ransomware attacks have access to initial lists of legitimate credentials, highlighting how dark web postings assist ransomware threat actor groups and organized crime affiliates to repeat their intrusion lifecycles against victims. EXPERT’S CORNER Keith Novak, Managing Director, Kroll Cyber Risk, provides best practices to mitigate against the effectiveness of initial access brokers:

• Awareness Training – Training employees to identify and report phishing emails remains a critical component of every organization’s security defenses. An organization should build on employee training with technical response procedures that guide the IT or InfoSec teams on the investigation and response to phishing attempts.

• Multi-Factor Authentication (MFA) - MFA pairs a username and password with a unique second factor which can include a PIN or biometric that prevents an attacker who obtained user credentials from logging in as a legitimate employee. MFA should be required for all remote access, cloud services, and privileged access accounts and remains one of the top recommendations for any organization.

• Vulnerability Management – Actor groups don’t always rely on phishing to obtain their access. In fact, many threat actor groups exploit unpatched public facing systems and services to gain their initial foothold and exfiltrate usernames and passwords from internal systems that have been compromised. A mature vulnerability management program should include routine scanning of all external and internal systems, devices, and applications for vulnerable software and the timely application of patches from the vendors to remediate them.

• Public Facing Systems – Reducing an organization’s public facing systems and services is a great way to reduce the risk of initial compromise. For example, attackers routinely target Microsoft RDP services for both vulnerabilities as an entry point using phished user credentials. Moving all remote access services behind a corporate remote access VPN connection, requiring MFA, and posture-checking the users’ device can be very effective at defending against unauthorized access

• Passwords – When it comes to password best practices, a few concepts continue to be proven true including: requiring the use of MFA, the longer the password TABLE OF CONTENTS

the better, utilizing password managers, preventing the caching of passwords on user systems and browsers, and not sharing credentials with others.

• Digital Risk Protection (DRP)– Proactive monitoring of dark web forums and other remote corners of the internet can help spot when corporate credentials are exposed in a new auction, or if attackers are impersonating your domains for phishing campaigns. Consider incorporating DRP in your security program. To protect your access credentials and prevent them from possibly appearing on the dark web for auction, it is important to set up proper precautions including ensuring good password hygiene and enabling MFA. Kroll’s Digital Risk Protection services can be used to monitor the deep and dark web for any exposures including any access credentials from your organization. Our experts will monitor for any threats, and provide assessments of exposure and vulnerabilities, delivered with actionable advice for how to protect your organization. For further guidance, contact one of our Kroll experts at one of our 24x7 cyber incident response hotlines or connect with us through our Contact Us page.



ANALYSIS - E.O.X. VANTAGE Continued From Page 32

FIGHT “THE GREAT RESIGNATION” WITH THE GREATER DIGITIZATION! searching tools and auto-fills. That means starting a claim can be done using minimal information. Great for the producer or agency, great for the insured! Likewise, endorsements can be done super-fast for any policyholder who is already in the system. Can you see how each automation-accelerated step along the way quickens things all down the line? MULTI-CARRIER PACKAGE QUOTES IN MINUTES Let’s look at another of my clients. They’re an auto monoline insurer. This company wanted to expand their business by offering package policies. Their old approach should sound familiar. They would manually capture and send entered information out to multiple carriers and wait for a response to use in a quote. The process would take around five hours – in other words over half a business day, just for one iteration. Using automation, the same result happens in less than 15 minutes! That’s hours and hours rescued

44 OCTOBER 2021

for team members who previously toiled in the spreadsheet pits. (In some companies even underwriters get sucked into the Excel abyss on occasion, which is a horrible waste of their talents!) Instead, all that time can go into a new focus on… • • • • •

Innovating, Developing programs, Attending to customers, Building sales, And so forth.

MAKE YOUR BLURRY DATA WINDOW SPARKLE Speaking of which, automation’s profound effect on your data gathering and storage efforts will prove fruitful when it comes to analysis. Making your data more visible, transparent, shareable and available will help immensely in: 1. 2. 3. 4. 5.

Examining trends Creating and achieving goals Identifying potential markets Targeting new prospects Improving risk rating


Growing your business becomes much more possible and sustainable once you gain control over your data! The lesson is: Use automation to drive data capture, entry and analysis. Everything from first contact to application through underwriting and renewal can be enhanced by automation. BE LOVED FOR MAKING IT ‘EASY PEASY’ When it comes to securing insurance, people can be lazy! They want it spelled out for them and presented on a platter. Ease things for them. You’re likely to seal the sale when you come back with a quote in minutes instead of days, eliminating all that extra time that allows your prospects to shop around or forget about you. They will love you for it. They might never say it, but yes, love! So much so that when your policyholders are happy with your simplified workflows and processes …satisfied with your speed and responsiveness …grateful for how easy you make it for them to deal with you, they will give you not only loyalty and renewals, but something else that’s very old-school yet always valued and appreciated: Referrals to their friends and neighbors. That’s one old-fashioned way of doing things we can all get behind!

By Lloyd's of London -, CC BY 2.5,





Articles inside

Thomas Edison Was Right article cover image

Thomas Edison Was Right

pages 4-6
Nine Best Practices In Defending Billion-Dollar Claims article cover image

Nine Best Practices In Defending Billion-Dollar Claims

pages 15-16
Fight “The Great Resignation” With The Greater Digitization! article cover image

Fight “The Great Resignation” With The Greater Digitization!

pages 23-26
Lloyd’s Reports Strong 2021 Half Year Results article cover image

Lloyd’s Reports Strong 2021 Half Year Results

pages 27-30
How Can The Insurance Industry Appeal To Gen Z? article cover image

How Can The Insurance Industry Appeal To Gen Z?

pages 7-8
Lloyd’s Lab Announces Its Seventh Cohort With A focus On Claims & Cryptocurrencies article cover image

Lloyd’s Lab Announces Its Seventh Cohort With A focus On Claims & Cryptocurrencies

page 9
Student Report: Luke Maguire, Social Media’s Surging Presence In Business article cover image

Student Report: Luke Maguire, Social Media’s Surging Presence In Business

pages 20-22
Data Analytics: “The Holy Grail” For Insurers article cover image

Data Analytics: “The Holy Grail” For Insurers

pages 18-19
Initial Access Brokers: Fueling The Ransomeware Threat article cover image

Initial Access Brokers: Fueling The Ransomeware Threat

page 17
Multi-Channel Customer Engagement - Today’s “Must” For Insurers article cover image

Multi-Channel Customer Engagement - Today’s “Must” For Insurers

pages 12-14