Insurance Business UK 2.02 by Key Media

INSURANCEBUSINESS.CO.UK ISSUE 2.02

INSURANCE BUSINESS

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SPECIALISTS Unique insights from seven brokers positioned right at the top of their specialist areas

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UPFRONT

EDITORIAL

www.insurancebusiness.co.uk EDITORIAL Editor Paul Lucas Journalists Sam Boyer Editorial Researcher Hannah Go Production Editor Clare Alexander

CONTRIBUTORS Karen Gately, Philipp Kristian Diekhöner

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SALES & MARKETING Vice President of Sales John Mackenzie Business Development Manager Nathan Beach Sales Manager Dane Taylor Mktg & Comms Manager Lisa Narroway

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Tim Duce Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

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Fake news: real problem

as it really more than 100 days ago? The idea of Donald J Trump leading the USA as its President has barely sunk in for most of us, yet he’s already spent more than 100 days in world politics’ ultimate hot-seat. On the arrival of that historic milestone he renewed his promises on taxes and healthcare – but also took the opportunity to reiterate another key theme of his reign to date, namely to slam the media for allegedly misleading Americans with what he brands “fake news”. Whether you agree with the media’s interpretation of President Trump’s leadership or not, there is no getting away from the fact that reputational risks have become a key topic globally – and especially in the world of insurance. It was in April that Aon released its Global Risk Management Survey 2017 which highlighted that damage to reputation/brand is now perceived as the top-ranked risk among 1,843 respondents at public and private companies around the world. “Over the past few years, while defective products, fraudulent business practices or corruption continue to be key reputation wreckers, new media technologies have greatly amplified their negative impact, making companies more vulnerable,” the Aon report states. “In the age of Twitter or viral videos, damage to reputation could occur because of an inappropriate tweet by an executive, or a video by an employee complaining about sexual harassment or discrimination. On a related note, fake news, which started as a way to influence elections on social media, has begun to spill over to the corporate world.” That spillover means that businesses can no longer rely solely on the usual forms of

Fake news, which started as a way to influence elections on social media, has begun to spill over to the corporate world

risk transfer and risk management – instead they require new ways to deal with emerging complexities. For the insurance world, of course, this creates an opportunity – fake news and similar reputational threats have created a risk that needs to be managed effectively. Among those who will likely be fastest to adapt to this developing risk are the brokers we shine the spotlight on in this edition of Insurance Business. Here we take a look at the Insurance Business Who’s Who to learn about those who are finding a way to succeed and grow their businesses even during turbulent times. Their leadership can provide inspiration to us all as we look to provide real, tangible solutions in a world of problems that is anything but fake.

The team at Insurance Business UK

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.

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UPFRONT

STATISTICS

What lies ahead

Canada

79.20

Overall risk score, 2017

84%

of finance professionals say forecasting risk is as hard or harder than three years ago

51%

anticipate that forecasting risk will be more challenging three years from now

Overall risk score, 2016

77.30

Overall risk score, 2017

78.30

What issues, trends and factors pose the greatest threats to the world in 2017? THE WORLD is no stranger to political risk in 2017. China and Russia top the list of countries most likely to influence the risk landscape this year, due to factors such as succession risks, conflict and regional instability. But the West is by no means immune from events that stoke geopolitical risk – the ongoing ramifications of the UK’s Brexit vote are still playing out on this side of the Atlantic, while

80.30

Overall risk score, 2016

the consequences of last year’s US presidential election continue to be felt on the other. Both events – along with contentious elections in places like France and the Netherlands – point to the rise of protectionism, nationalism and anti-establishment parties in countries worldwide. This apparent turning of the tide raises new concerns for insurers – and therefore brokers and their clients.

67%

of companies have made efforts to mitigate exposure in response to current and emerging threats

WHICH COUNTRIES ARE MOST AT RISK? In looking at political, economic and operational risk worldwide, Marsh found that Africa, the Middle East and parts of South America are still the least stable in terms of their ability to deal with such shocks as economic calamity or abrupt political changes. However, a closer look at some key countries reveals that stability has fallen slightly across the globe over the past year. RISK SCORE

60%

< 49

of organizations have maintained liquidity due to the threat of geopolitical risks

50-59

60-69

70-79 80-100

Unstable

Stable

Source: Marsh & McLennan/Association for Financial Professionals, January 2017

MITIGATING RISK WITH DATA Given the current climate, more companies are committing to using risk data and analytics to inform decision-making.

How is your organisation using risk data and analytics? To improve risk identification (50%) To inform the overall business strategy (43%) To enhance risk mitigation (34%)

WHICH RISKS ARE MOST LIKELY? According to the World Economic Forum’s Global Risks Report, geopolitical risks (shown in orange below) have taken on more prominence in recent years in terms of the risks businesses feel are most likely to happen.

2012

To support major transactions (25%) To facilitate risk reporting (21%) To optimise insurance programs (17%) Source: Marsh & McLennan/Association for Financial Professionals, January 2017

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2014

Income disparity

Chronic fiscal imbalances

Extreme weather events

Rising greenhouse emissions

Cyber attacks Water supply crisis

To understand risk-bearing capacity (28%) To inform decisions on specific risks (26%)

2013

2015 Interstate conflict with regional consequences Extreme weather events

2016

2017

Large-scale involuntary migration

Extreme weather events

Large-scale involuntary migration

Unemployment or underemployment

Failure of national governance

Failure of climatechange mitigation and adaption

Major natural disaster

Water supply crisis

Climate change

State collapse or crisis

Interstate conflict with regional consequences

Large-scale terrorist attacks

Mismanagement of population aging

Cyber attacks

Unemployment or underemployment

Major natural catastrophes

Massive incident of data fraud/ theft

Societal

Economic

Environmental

Geopolitical

Technological Source: World Economic Forum

Germany

Russia

Overall risk score, 2017

77.40

60.60

78.60

59.10

Overall risk score, 2016

China

France

68.40

72.30

Overall risk score, 2017

67.70

74.80

Overall risk score, 2016

Singapore

Brazil

56.70

81.10

India

Overall risk score, 2017

Overall risk score, 2016

Overall risk score, 2017

62.70

57.20

Overall risk score, 2016

83.00

63.60

Overall risk score, 2016

New Zealand

77.60

South Africa

Australia

Overall risk score, 2017

Overall risk score, 2016

56.50

74.60

58.30

77.00

74.90

Overall risk score, 2016

Overall risk score, 2016 Source: Marsh/BMI Research

WHICH RISKS WILL HAVE THE MOST IMPACT? When it comes to the risks that would have the greatest impact, recent Global Risks Reports put environmental calamities right up there with societal and gepolitical risks, while economic risks have taken a backseat.

2012

2013

2014

2015

2016

2017

Fiscal crisis

Water supply crisis

Failure of climatechange mitigation and adaption

Weapons of mass destruction

Climate change

Rapid and massive spread of infectious diseases

Weapons of mass destruction

Water supply crisis

Weapons of mass destruction

Water supply crisis

Weapons of mass destruction

Unemployment or underemployment

Interstate conflict with regional consequences

Large-scale involuntary migration

Failure of climatechange mitigation and adaption

Critical information infrastructure breakdown

Failure of climatechange mitigation and adaption

Severe energy price shock

Major systemic financial failure

Water supply crisis

Food shortage crisis Chronic fiscal imbalances Volatility in energy and agricultural prices

Chronic fiscal imbalances

Societal

Economic

Environmental

Geopolitical

VIEW FROM THE C-SUITE Almost half of the executives at companies surveyed by Marsh & McLennan are concerned about geopolitical risks, especially those at larger and public companies. All companies

Extreme weather events Water supply crisis Major natural disaster Failure of climatechange mitigation and adaption

Technological

46%

15%

Annual revenue less than $1 billion 42%

42%

16%

Annual revenue at least $1 billion 53%

35%

13%

Publicly owned 52%

31%

17%

Privately held 45%

Concerned Source: World Economic Forum

39%

42%

Not concerned

13%

Unsure

Source: Marsh & McLennan/Association for Financial Professionals, January 2017

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UPFRONT

HEAD TO HEAD

Will driverless cars be good or bad for insurance? Technology is leading automotive insurance down a new road – but are brokers prepared to travel it?

David Williams

Teresa Cracas

John Matley

Technical director AXA Insurance

Senior vice president and chief risk officer The Cincinnati Insurance Companies

Insurance leader Future of Mobility Practice Deloitte Consulting

“Automated vehicle technology could drastically reduce the number of accidents on our roads, and insurers are at the heart of making that happen. In addition, driverless vehicles could impact society in a number of positive ways – providing modes of transport for those currently unable to drive, tackling congestion, lowering emissions and reforming city planning. Motor insurance has been compulsory in the UK for more than 80 years, but the industry has only made an underwriting profit once since 1993. We should be welcoming any disruption with open arms – and with insurers leading the charge in driverless, it puts us very much in control of our destiny.”

“The insurance industry has always supported innovations that help save lives. We’re learning that potential life-saving benefits could come from removing distracted humans from driving. And risks related to cars will still need to be managed, even if the potential liability shifts from driver to manufacturer. While it’s still too early to know exactly what impact driverless cars will have on our industry, we know that we cannot sit and wait for this change – or any change – to happen. Carriers need to understand what’s coming and develop strategies that help agents serve their clients as the world around us evolves.”

“We believe we will see a seismic shift from traditional personal lines policies to a future in which personal and commercial lines will blur and combine very closely as car-sharing and ridesharing begin to change lifestyles. For the players who are extremely focused on personal auto policies and don’t have commercial lines capabilities, without a strategy to adapt, driverless cars represent a long-term existential crisis. For those who are have strong commercial lines capabilities, knowledge on how to underwrite and price product liability, and who are dynamic in their thinking, the change driverless cars represent is potentially very good.”

THE NEW KINGS OF THE ROAD It’s just a matter of time before driverless cars dominate the world’s highways, according to a study from IHS Automotive, which foresees a future in which 76 million vehicles with some level of autonomy are sold globally between now and 2035. The study predicted that autonomous vehicles that allow for driver control will be on roads worldwide before 2025, and that vehicles with no means of driver control will follow by 2030. IHS Automotive believes that at some point after 2050, almost all vehicles on the road will be self-propelled.

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UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email editor@insurancebusiness.co.uk

The dangers of Big Data Big Data might be the next big thing – but, writes Peter Kochenburger, the industry’s use of it is outstripping the traditional capabilities of regulators BIG DATA gives insurers the ability to collect vast amounts of personalised information, create new predictive models and apply them to a variety of insurance functions, thereby enhancing the marketplace for insurance consumers. Unrestrained, however, Big Data will also negatively disrupt insurance regulation and essential insurance functions. One concern is Big Data’s ability to evaluate consumer behaviour. Price optimisation – the ability to predict how much a premium can be increased before a particular consumer is motivated to shop around – is the most recent battleground. This practice may well constitute unfair discrimination by differentiating among consumers with the same risk characteristics based on their propensity to comparison shop, and several jurisdictions have issued bulletins banning the practice. Perhaps building on this theme, several data analytics vendors are promoting claim optimisation. This is good news if it means settlements will be quicker, fairer and more efficient. But the ability to ‘optimise’ can also mean establishing settlement offers on the statistical likelihood that the claimant will accept the offer, rather than on the fair value of the claim itself. In this area, the law is clear: Insurers are required to pay claims at their full value and not negotiate them downward based on unrelated factors, such as a policyholder’s need for a quick payout. Neither practice is new, but Big Data allows companies to engage in them in a far more sophisticated manner, to the detriment

of insurance consumers. It also challenges regulators’ ability to fulfill a number of traditional supervisory functions, including evaluating insurer rating and underwriting plans, and enforcing laws against discrimination. There is a growing gap between the industry’s use of Big Data and regulators’ ability to supervise it. These models are increasingly complex, can include more than a thousand rating factors for a single insured, and are

full cost of insuring their homes from flood, or continuing the partial subsidisation of rates – in essence, spreading some of the risk to all federal taxpayers. An article in a US newspaper last October about wildfires and insurance rates noted that for some homeowners, rates had more than doubled in five years due to more individualised risk assessments and developments in fire metrics. “Today, insurance companies can zero in on the risk to a specific home and price the policy specific to that address,” said a state insurance regulator quoted in the article. Big Data sharpens the divergence between risk precision and risk spreading. However, there are instances where we as a society want to subsidise policyholder risk; the best example may be forbidding health insurers from using an insured’s health status or pre-existing condition in setting rates. There are also good reasons why individuals who can legally drive (despite a series of accidents) should be able to obtain affordable auto insurance, and assigned risk plans are often subsidised in part by the voluntary market.

“These models are increasingly complex and are often created by third-party vendors over whom regulators have uncertain authority” often created by third-party vendors over whom regulators have uncertain authority. The most difficult challenge presented by Big Data and predictive analytics probably lies in its greatest potential: to align risk more precisely, perhaps down to the individual policyholder level. While this ability enhances actuarial fairness, it also fragments risk pools and reduces risk spreading, another essential insurance function. To use an ‘old’ Big Data example, credit scoring might result in the majority of policyholders paying less than without its use, but since the overall premiums collected are not reduced, it also means a minority is paying more – sometimes a lot more. The political battles in the USA over the National Flood Insurance Program’s rates for residential flood coverage illustrate the dilemma between charging homeowners the

Determining the appropriate risk allocation is neither an actuarial decision nor one to be made by private actors, but a matter of public policy, meaning our elected officials and regulators will be responsible. If our political system is as fragmented as many believe, effective legislative guidance may not be forthcoming, leading to a continuation of de-facto subsidisation (the NFIP), or essential insurance products becoming far more expensive and a growing number of policyholders being priced out of the market.

Professor Peter Kochenburger teaches insurance law at the University of Connecticut Law School. He is a NAIC consumer representative, was elected to the American Law Institute in 2013 and graduated from Harvard Law School in 1986.

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UPFRONT

NEWS ANALYSIS

The tech revolution? From mobile apps to digital signatures to social media content, the broker channel is embracing the technologies it once feared. But has it caught up with the pace? IT’S NOTHING new to say that technology is drastically changing the landscape for businesses across all industries and continents. But while insurance – and specifically the broker channel – is often criticised for being too slow to adapt to the technologies that are revolutionizing other markets, the signs suggest that the industry might finally be having its moment. “I actually think it’s a little bit of a myth that insurance in general, and our broker channel in particular, are averse to technology,” says Michael Howe, senior vice president of product management at insurance software provider Applied Systems. Howe says two years ago, he would have agreed that some in the industry remained

forward. All the things that [businesses are] trying to do, technology can help them. And it seems obvious to say that, but we actually see people acting on that.” While tools such as mobile apps and digital management systems can make brokers’ jobs easier, technology is also revolutionising the way they can engage with clients – who, in turn, are expecting a higher level of customer service in the digital age. Consumers are becoming more and more accustomed to immediate, 24/7 accessibility, and increasingly expect service providers to offer apps in which they can access their information and take action at any time of the day, says Matt

“People now get that technology, and enabling their business with technology, is no longer optional” Michael Howe, Applied Systems tech-phobic, but changes in the last couple of years suggest that’s no longer the case. Applied saw the user base for its mobile app surge by 162% year-overyear, the company announced last month, suggesting that brokers are not just going digital, but are also embracing mobile. “I think there’s a general recognition now that technology is not to be feared,” Howe says. “The opposite – it’s actually the way

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Bevan, president of brokerage D.G Bevan. He points to digital signatures as a great example of how a simple technology is enabling brokers to provide a speedier, more convenient service. “Many brokers are moving in this direction, especially for personal lines,” Bevan says. “This is a solution that provides efficiencies on both the broker and client sides of the transaction. A prospect can

find our company from a search on their phone, after a quick call or online chat, we can email them an e-signature document. A few taps on their phone, and they have a policy.” Social media – not typically considered an essential function in the insurance industry – is also fast becoming a vital part of a brokerage’s offering. More and more brokers are feeling the pressure to keep their social media presence up-to-date, says Stanislav Kojokin, partner at brokerage KASE Insurance. “Just like any service industry, brokers would like to stay connected with their clients and engage them in the activities of the business,” he says, adding that there are firms that produce insurance-related content for brokers to make online media easier to manage. “As a result, many brokers are making sure to have mobile-friendly websites and active social media accounts,” Kojokin says.

THE CONSUMER MIGRATION

71%

of consumers use some form of digital research before buying insurance

76%

of millennials believe having a mobile service is very important

64%

of millennials believe social media is an effective customer service channel, compared to 27% of baby boomers But despite undeniable steps forward in the digital space, the outside perception of the industry as a whole may not have caught up just yet. “The insurance industry has developed

tive to see the industry moving forward.” The pace at which technology is growing is forcing a new perspective in the industry, according to Kaufman, but with a large portion of its workers “graying and looking

“The insurance industry has developed a reputation for lagging behind in regard to embracing new technology” Daniel J. Kaufman, Burns & Wilcox a reputation for lagging behind in regard to embracing new and emerging technology,” says Daniel J. Kaufman, senior vice president and managing director at Burns & Wilcox. More insurers in both the standard and specialty markets are investing in technologies ranging from mobile tools to predictive analytics, Kaufman says, and while investment has been slow, he adds that “it’s posi-

toward retirement,” a lot more needs to be done to attract the next generation of digital natives. “It’s no secret that the insurance industry is facing an inevitable talent shortfall,” Kaufman says. “Young, tech-savvy professionals cannot be expected to follow an insurance career path unless it is recognised that our industry is heavily investing in emerging technology.”

71%

of consumers who have had a good social media service experience with a brand are likely to recommend it to others Sources: PwC, IDG Research Services, Microsoft, Ambassador

Looking ahead, the consensus is that technology will continue to drive the pace across the globe. Kaufman believes technology and big data present a significant opportunity for all lines in the insurance industry to enhance operational proficiencies and better understand the risks and needs of client. “People now get that technology, and enabling their business with technology, is no longer optional,” Howe says. “They know they can’t bury their head in the sand and hope it goes away.”

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PEOPLE

INDUSTRY ICON

GREAT EXPECTATIONS Crawford & Co. CEO Ian Muress considers the change new technologies will bring to the insurance industry, along with the opportunities they will create

IAN MURESS, CEO of international operations at Crawford & Company, is approaching four decades in the claims space – and in the next decade, the industry veteran expects insurance to transform significantly. “I would say the industry could be unrecognisable from what we now know,” he says, “with likely insurer and broker consolidation, the growth of new markets in the rising economies of the East, and markets in Dubai, Singapore, and Hong Kong becoming less reliant on London with local capital and skill sets available.” For the past 15 years, Muress has occupied executive roles at Crawford & Co., the world’s largest publicly listed independent provider of claims management solutions to insurers and self-insured entities. Based in London, today he heads up Crawford’s international businesses outside of the US. As such, he’s attuned to the threats and opportunities currently facing the industry – particularly disruptors. “Disruption is often seen to be driven by technology, and certainly this is right, but it is aligned to, and mostly about, anticipating customer expectations of service,” he says. “Customer expectations have evolved – they want their needs met immediately and available on numerous platforms, reflecting their lifestyles and work patterns. We need to find the insurance solutions that meet those expectations.” He points to the use of artificial intelligence to automate back-office tasks and handle highvolume, rules-based work.

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“Once programmed, AI systems can replicate decision-making processes and apply them more quickly and more efficiently than human operators,” he says. “What is clear is that AI has evolved in the past 18 months and is here to stay, and needs to be factored into future planning in order for companies to remain competitive.” While many in the industry have reacted to technological advances with dismay, Muress describes the recent activity around disruption and change as “very healthy.”

believe the industry is in the midst of a hugely turbulent period in which many of the services and income streams it has relied upon are being questioned and attacked by innovators. This doesn’t necessarily mean all innovation is going to come from outside the industry.”

The insurtech threat Worth nearly $5 trillion, the global insurance industry faces challenges from insurtech firms – businesses with a mission to develop new technologies that will revolutionise the client

“Customer expectations have evolved, and they want their needs met immediately and available on numerous platforms, reflecting their lifestyles and work patterns. We need to find the insurance solutions that meet those expectations” “It is forcing the industry to consider entrenched positions and develop new ways of doing business that put the customer at the heart of what we do,” he says. “Comparison websites should really have been called ‘disruptors,’ but their emergence took place in a different business environment, and they weren’t being chased by such a huge cohort of businesses as seems to be the case now. “Don’t get me wrong,” he continues, “I

service experience for insurance customers across the globe. One insurtech startup that has attracted considerable attention is Lemonade, said to be the world’s first modern peer-to-peer insurance company. It initially provided homeowner’s and renter’s insurance in New York, but the company has for a license in 46 US states and the District of Columbia, hoping to be available to 97% of the US population in 2017.

PROFILE Name: Ian V. Muress Company: Crawford & Company Title: Executive vice president and CEO, international operations Age: 59 Years in the industry: 36 Fast fact: Muress oversees all of Crawfordâ&#x20AC;&#x2122;s business outside the United States, as well as the UK, Europe, Canada, Asia-Pacific and Latin America.

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PEOPLE

INDUSTRY ICON

But the burgeoning insurtech space brings with it opportunities for incumbents to form new partnerships. Muress highlights Crawford’s foray into the ‘gig economy’ through its US$36 million acquisition of a majority stake in WeGoLook, a business focused on making it easier for consumers to verify information so they can more easily make important decisions. “WeGoLook [is] an online and mobile platform that deploys thousands of people called ‘lookers’ from a nationwide network to inspect and verify information, helping clients make real-time decisions,” Muress explains. “We are

“The industry could choose an entrenched position, given that it faces something of an existential threat once vehicles learn to drive for themselves,” he says, “but where there is change, there is opportunity, and it is pleasing to see insurers put their best foot forward.” Muress believes it is incumbent upon the industry as a whole to embrace advances in technology. “Disruption is happening now, and even if you don’t belong to the millennial age group, you can still be part of the future. Either you want to be part of disruption or you might want to collaborate, but to not work with change is

“The forward-thinking insurance business should embrace skills like analytics, coding and applied mathematics because these are the types of backgrounds that will drive innovation and allow them to think beyond today’s methodologies” looking to bring the WeGoLook model to the UK, Australia and Canada in 2017. The model is very portable, in that the technology and business architecture readily lends itself to a ‘lift and shift’ model. It’s good to go. We are very ambitious about how quickly we can push this out into the international businesses, and we’re working on a very successful, established model coming out of the US. It is our belief that the demands of both insurers and customers can be met quickly and easily with applications such as this.”

Embracing change Muress says he’s been pleased to see organisations such as the Association of British Insurers taking a positive role in developing the framework for liability insurance, particularly around driverless cars, allowing change in the industry to occur.

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not an option.” Illustrating the point, he recalls events that kicked off at Crawford & Co. back in 2009. “We saw the need for more complex skill sets to meet the claims needs of the future, so we developed our complex claims offering, Crawford Global Technical Services,” he says. “It became increasingly clear that dualqualified adjusters were an essential piece of our solution. We needed engineers, forensic accountants, surveyors, cyber experts, all of whom would also be adjusters.” Muress says the days of fixed roles in underwriting, claims or distribution are long gone. “The forward-thinking insurance business should embrace skills like analytics, coding and applied mathematics,” he says, “because these are the types of backgrounds that will drive innovation and allow them to think beyond today’s methodologies.”

CRAWFORD & COMPANY BY THE NUMBERS

1941

Year Crawford & Co. was founded by Jim Crawford, an insurance claims manager

2002

Year Ian Muress joined Crawford & Co. as CEO for UK and Ireland

150

Number of countries where Crawford & Co. serves clients and handles claims

US$1.2 billion

Crawford & Co.’s global revenue in 2015

1.6 million

Number of global claims handled by Crawford & Co. in 2015

UPFRONT

FOCUS

SME market you may be missing Research shines the spotlight on a cover that SMEs are ignoring, and what it is they really want from insurance WE ALL know that companies face a number of critical issues that could have a damaging impact on their business and a knock-on effect on their clients – but what might surprise you is just how many of them are ignoring professional indemnity cover as a way to address these problems. New research by Direct Line for Business has shone a light on the extent of the issue. It has found that almost a third of UK businesses (31%) have experienced critical business issues, ranging from injuries being sustained on the company’s premises to loss of business reputation after using consultancy services, and yet 24% of service providers have no professional indemnity insurance. For insurance brokers looking to sell PI policies to these businesses, there is, therefore, one key message to get across – according to the same survey, only one in five of those SMEs that do have PI cover actually make a claim. “While over a quarter (28%) of SMEs claim not to need professional indemnity cover, 24% of the remaining businesses don’t have any PI cover, with 8% claiming not to be familiar with PI at all,” says Jane Guaschi, business manager at Direct Line for Business. “Of the companies that told us they do have cover, more than one in five (22%) have had to make a claim on it, with 10% having to claim on it on multiple occasions.

“Small businesses should consider taking out PI insurance, which includes cover for breach of confidentiality and professional duty, malicious acts or omission by former and present employees and loss of data or damage to a client’s reputation.” It’s not just PI that is important for

owners should ensure they’ve the relevant insurance cover to give them peace of mind.” Separately, however, research has shown just how difficult a task brokers may face in persuading potential clients to use their services. RSA has released data analysing what influences business owners’ insurance buying decisions and discovered that the cost of premiums was ahead of the rest – named as a top-three factor by 61% of the survey’s respondents. Perhaps more worryingly, by comparison, just 38% of SMEs ranked scope of cover as a top deciding factor. “It is worrying to see that such a small proportion of SMEs rank the scope of cover as a top-three factor,” say Russell White, schemes and deals director, regions and SME, commercial risk solutions at RSA. “This is undoubtedly contributing to the underinsurance problem we see among SMEs, and it is crucial that brokers highlight its importance to their clients to ensure they are sufficiently protected.” There was some good news for brokers in the survey, as 58% of businesses listed either customer service or understanding of their business as top three influencers.

“Even if you’re professional … everyone has the potential to make mistakes” Jane Guaschi, business manager, Direct Line for Business businesses, either. Guaschi explains that public liability is often overlooked by SMEs, despite being such a significant product for brokers. The survey highlighted a host of common occurrences that can help brokers ram home the importance of these cover options to their clients. It found that the most common incidents were employees being injured on site (29%), having an employee steal money or information from the company or a client (21%), losing a client as a result of giving poor advice (19%) and having a client experience a financial loss because of the service provided (18%). “Even if you’re professional and give advice and sell products in good faith, everyone has the potential to make mistakes,” Guaschi says. “The costs of litigation and damages can be steep, so small business

“Brokers’ understanding of their clients’ businesses and the quality of their service are the only factors that come anywhere close to the influence the cost of premiums has when it comes to taking out insurance,” White says. “This highlights the great importance of brokers and their role in developing a sound understanding of their clients’ businesses and insurance needs.” The same survey questioned brokers on which policies are being most commonly sought after by SMEs. They highlighted: public liability insurance (82%), commercial combined insurance (58%) and business property insurance (36%). Worringly, SMEs seem as though they’ve yet to come to terms with the importance of cyber insurance, as only 6% of brokers identified it as one of the top three products their SME clients want.

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SPECIAL REPORT

LEADING SPECIALISTS

INSURANCE BUSINESS

LEADING

SPECIALISTS Unique insights from seven brokers positioned right at the top of their specialist areas

THIS SELECTION of leading insurance specialists have all found success in providing advice and insurance solutions in specific sectors. At the top of their game and armed with years of experience, these specialists represent the vanguard of their respective industry segments and possess a thorough knowledge of them that few can match. Here, they provide valuable insights into some of the most important and complex insurance sectors of todayâ&#x20AC;&#x2122;s market.

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AGRIBUSINESS JULIAN ROBERTS Managing director, Alternative Risk Solutions WILLIS TOWERS WATSON

After starting his career as a junior broker at a Lloyd’s broking firm that established a specialist international agricultural division, Julian Roberts found a perfect fit for his background; he previously read agricultural and forestry sciences at Oxford and then obtained a master’s degree in agricultural economics. At a time when entering crop insurance was an “innovative step” for brokers, Roberts established expertise in the area that has grown tremendously in recent decades. As managing director of Willis Towers Watson’s Alternative Risk Transfer Solutions practice, he leads program development and risk mitigation for agricultural clients.

What is the current state of the industry? “Today, the agricultural insurance and reinsurance market is flourishing; the number of companies and dedicated expert underwriters has grown exponentially,” Roberts says. “But this only befits the requirements of one of the world’s largest productive sectors and its challenging risk management requirements. “The most obvious trend is one of growth and profile. Back in the ’80s and ’90s there were few agricultural insurance programs of scale, with the federal crop program in the US being the clear lead. Although there was, generally, just sufficient reinsurance capacity to cover market needs, there were few companies and individuals with subject matter expertise to give leadership and apply real technical knowledge.”

What are the main challenges of working with this industry? “The obvious challenge in the insurance of

crops and livestock/aquaculture – and, to some extent, forestry – lies in the nature of the underlying business. They are biological systems with all the inherent uncertainty and volatility associated with weather variability and management competence, not to mention external hazards, such as pest, disease and predation, etc. Agricultural production is often geographically remote making the logistics and infrastructure needed to service the account difficult, time-consuming and potentially costly.”

What does the future hold for agricultural insurance? “[The] UK farming sector is highly focused on the outcome of Brexit negotiations and what may replace the farm payments regime. While these payments are designed to support many aspects of the farming sector, including environmental stewardship, there is a component of this that should address underlying risk management. Consultations are to consider what, if any, function the insurance industry might play in a newly designed farm support regime. “The London and Lloyd’s insurance market continues to be a centre of global

excellence for underwriting crop and livestock insurance worldwide. This takes the form of treaty reinsurance, some facultative business and certain specialist managing general agencies, for example for forestry, livestock and aquaculture. It is anticipated that this will continue to grow as global demand for expertise and capacity increases from emerging economies.”

How has technology impacted this market? “In recent years, the use of index-based, or parametric, policies have supplemented the more conventional indemnity-based insurances. Such policies make payments solely based upon the movement of an index (eg low rainfall or temperature) in a derivative style of settlement. There are challenges in designing an index that well reflects the underlying performance of the farming enterprise, but the simplicity of operation – no need for farm visits or loss adjustment – makes this style of protection far easier to implement and deliver. “At the heart of effective index-based products is access to good data; here, new technologies including satellite, big data and other model-based approaches have transformed the information landscape.”

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SPECIAL REPORT

LEADING SPECIALISTS arrange the insurance of their assets and recover the premium from tenants, and are compensated for administration by sharing in the commission. I support this practice, but this compensation should be fair and justifiable, and not a source of excessive profits. “It is complacent to think that the absence of regulation or law is sufficient reason not to change behaviour. Failing to treat customers fairly has caused reputational damage to a wide range of companies in recent years; these are lessons that all real estate sector stakeholders should learn.”

REAL ESTATE

What is your prediction for what the years ahead hold for the real estate insurance industry in the UK?

JOHN DILLEY Lead, UK real estate MARSH

John Dilley serves as lead of Marsh’s UK real estate division and has a career in real estate insurance spanning over 30 years. In 1983, he started his career at CT Bowring just three years into its acquisition by Marsh. He subsequently worked at Robert Fleming Insurance Brokers, CE Heath, Lambert Fenchurch, and Willis. Finally, after a 28-year absence, he returned to Marsh where his industry knowledge helps safeguard the coverage of real estate’s complex challenges and changing risks.

What trends are impacting the commercial real estate industry? “Security remains a concern. The shift in terrorist targets from property to people in the past few years means that, despite devastatingly high costs in lives and suffering, these attacks typically cause minimal direct

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damage to property. The changing pattern of terrorism risk means more companies are questioning whether they are adequately insured for business interruption and related losses.” “Cyber insurance is being promoted to the real estate sector without risks relating to building sophistication being properly assessed and understood, which can be a source of frustration for informed buyers. “Capacity oversupply is maintaining longterm, low-level premiums, which benefits our clients. As medium-term change in market conditions is unlikely, we are attentive to the impact on the constructive commercial approach that specialist real estate insurers have traditionally taken to complex claims.”

What are the challenges and risks in insuring this industry? “One risk that threatens the sector more than any other is the adverse manipulation of the right to recover insurance administration costs from tenants. Real estate investors

“Developments in occupier demand, investment strategy, technology and building methods will require new risks to be managed and underwritten; it will be intriguing to see how the insurance community resource for the coming evolution of the real estate market. “What might happen and what is needed are very different. For instance in security, the real estate sector needs a convergent approach to security issues across assets, people risks and cyber, rather than the insurance industry chugging along with traditional risk compartmentalisation.”

What’s your take on the commercial real estate insurance market? “It’s a very small market; many of the broker protagonists have worked with each other at some point, and underwriting has been a merry-go-round for people movement over the last two years. This isn’t necessarily healthy for the real estate buyer, who needs innovative thinking to anticipate changing risk needs. A key personal ambition for the next (and last) few years of my career is to deliver a new generation of fresh challengers and disrupters to the sector. “I highly recommend specialisation. Thirty years of real estate focus has allowed me to develop deep industry knowledge, which has benefited my clients.”

CYBER SIMON GILBERT Founder and managing director ELMORE INSURANCE BROKERS

After the wave of mega cyber breaches hit the US, Simon Gilbert began writing the business plan to establish Elmore Insurance Brokers in 2012, acknowledging that businesses were becoming increasingly aware of evolving cyber dangers. Prior to establishing Elmore Insurance Brokers, Gilbert held positions at UIB and Howden, where he managed the cross-selling strategy for their international portfolio, as well as developing new products such as cyber insurance. Today, Gilbert utilises his wealth of experience and knowledge to arrange policies to protect businesses from internet-based risks.

What inspired you to establish a brokerage specialising in cyber? “I knew businesses were becoming more aware of the emerging threats and new risks such as cyber. Cyber events were happening in the UK but not being reported, and with the changing regulatory environment such as EU GDPR, I felt it was only a matter of time before we saw data breach headlines in the UK. That’s why we wanted to focus on cyber insurance as our specialism. Cyber security has such broadranging consequences for all businesses; it is an area I have followed and worked on closely since my first meeting in insurance back in 2001.”

What is insurance?

considered

cyber

“We like the term cyber insurance, however we like to explain to our clients it is really a broad headline for a wider category of digital risks that a firm can be exposed to. We put intellectual property, crime, system failure and privacy liability under the cyber

“Cyber events were not being reported … I felt it was only a matter of time before we saw data breach headlines in the UK. That’s why we wanted to focus on cyber insurance” insurance header, which normally opens great dialogue with risk-aware clients. We also look to go one step further with businesses and explore the enterprise risks they may be exposed to, including business interruptions, reputation harm and supply chain failure.”

a company’s anti-virus or firewall

What are the major challenges in insuring cyber risks?

response plans, all of which manage the

“Cyber risk is not just a matter of

human part.”

malfunctioning; it comes down to the core operational controls a business has in place to monitor and maintain good working practices. That’s why cyber insurers put a great deal of emphasis on training, operational controls and post-incident weakest part of the security chain – the

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SPECIAL REPORT

LEADING SPECIALISTS GAMING/ONLINE LOTTERY MARK ROBINSON Managing director, GamingSure HENDERSON INSURANCE BROKERS

While in high school, Mark Robinson attended a work experience placement for two weeks at a local, family run independent broker. He enjoyed it so much that he took a part-time position there over the summer. After leaving school, he entered into an office junior role at the same company – and he has been in insurance ever since.

How did you enter the online lottery business? “In 2013, I was introduced to a new online secondary lottery business. Following initial discussions regarding risk exposure, I was tasked to investigate prize indemnity cover in the Lloyd’s of London market. Following lengthy negotiations with various key individuals in the London market, I was able to present a comprehensive cover portfolio that met the clients’ requirements. The flexibility of the policy enabled the client to

“The desire to offer larger jackpots is really ramping up. This is where operators are turning to insurance, in order to allow them to offer larger jackpots” grow significantly in year one and become one of the largest online secondary lottery providers in the sector. “Throughout 2014, I continued to work with key contacts within the sector and the insurance market in order to further develop the overall insurance offering to the online gaming sector and became a well-renowned specialist broker in the sector. “In 2015, I joined Henderson Insurance

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Brokers and set up GamingSure. I continue to work with sector specialists and experts in the international insurance markets to further develop the insurance offerings to the sector.”

What are the trends you are seeing impact the online gaming space? “Certainly the desire to offer larger jackpots and more interesting games is really ramping up – the higher the jackpots,

the more people play. This is where operators are turning to insurance, in order to allow them to offer larger jackpots and give customers the peace of mind that large winnings will be paid.”

What are the major challenges in this industry? “The challenges remain the legality around betting territories. An insurance policy will exclude winnings from players who are based in a territory where it is illegal to gamble online. We work closely with our clients to ensure everyone is comfortable with the policy wordings. “The opportunities are vast, if you have a good understanding of the sector and insurance market.”

AVIATION AND AEROSPACE

in a class of business that was specialised, global and fast developing, Milan targeted aviation as a natural choice. Now 14 years with Willis Towers Watson, Milan serves as the sales and marketing director for general aviation and aerospace. Day-to-day, he drives the overall sales strategy for the practice while maintaining key client and market relationships in this robust marketplace.

What are some trends you are seeing impact the aerospace industry?

ROBIN JAMES MILAN

“At the end of 2016, Willis Towers Watson commissioned a survey of C-suite executives and thought leaders in the transportation industry to identify what they perceived as the mega-trends affecting their businesses. The five mega trends were: geopolitical instability and regulatory uncertainty, digital vulnerability and rapid technological advancement, changing market dynamics and business model insecurity, complex operating models in an interconnected world and, finally, talent management and the complexities of a global workforce. “The aviation industry is unique, simultaneously at the forefront of technological developments yet largely reliant on legacy procedures, systems and operations that have not changed for many years. As the pace of change accelerates, the opportunities for growth and the risks associated with these opportunities will become ever more critical.”

Sales and marketing director for general aviation WILLIS TOWERS WATSON

What are the major risks in the aviation industry?

As Robin James Milan grew up on the beaches of Cornwall, he didn’t consider a career in insurance. Indeed, it wasn’t until he was at university that the results of a psychometric test suggested it as a potential career. As he began to explore the industry, he was offered a role at Willis Towers Watson shortly after his gap year following university. With a desire to work

“Aviation business can be attractive to insurers as it is viewed as non-correlated with other classes and, therefore, helps carriers balance their accumulated risk. This, coupled with a benign investment environment, has led to an influx of capacity into the aviation market over the last few years and, consequently, a very soft rating environment and erosion in the premium base.

and aerospace

“The common perception of aviation insurance is that the large headline losses, such as Air France in 2009 or the two Malaysia Airlines losses, are the principal cause for concern among insurers and could become a trigger for market hardening. The reality is far more nuanced. “When they occur, total hull losses have a significant impact on the results of an account for that year, but are they in and of themselves market hardening? No. There is almost always a miss-factor for insurers who were not involved in the loss and, therefore, the market appetite for a well-run operator among non-participating insurers remains high. This keeps a downward pressure on rating. “What is perhaps more painful for insurers are the unspectacular, but often expensive, attritional losses year-on-year. Hard landings, bird-strikes, incidents within the hangar, lightning strikes, none of which result in total losses, can very quickly erode the premium base across individual accounts and the class of business as a whole. Throw in the long-tail nature of aviation manufacturers liability losses – which are also insured in the aviation market – and it takes considerable skill for brokers and carriers alike to navigate what can be a very tough marketplace.”

What is your prediction for what the years ahead hold for the aerospace insurance industry? “Aviation clients are becoming more demanding of their suppliers and this is a challenge the insurance industry needs to meet. We expect the historic off-the-shelf, ‘product first’ insurance business model to be challenged. Clients will instead expect a much deeper understanding of their business, [with] solutions designed around their individual challenges.” “The success of Willis Towers Watson will depend on our ability to engage in a much deeper conversation with companies across their entire risk and human capital landscape”

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SPECIAL REPORT

LEADING SPECIALISTS HOSPITALITY AND LEISURE DAVID POET Managing director, international hospitality and leisure practice ARTHUR J GALLAGHER

The managing director of Arthur J Gallagher’s international hospitality and leisure practice, David Poet has spent 17 years specialising in insuring the tourism industry that is now valued at approximately £5.77trn globally. As a hospitality specialist, Poet focuses on the global hotel and resort market at Gallagher, where he is responsible for the strategic development and delivery of tailored propositions to the international hotel sector. With approximately 8,000 hotel clients under the practice’s portfolio, Poet needs to keep his finger on the pulse in order to effectively manage and offset the fast-evolving risk exposures of this challenging market .

What are the major risks in the hospitality and leisure sectors? “Historically, as an industry, we have not made insurance resonate with what hotel groups actually want or need. What they are concerned about, and will do anything to protect, is what they call their level of revpar (revenue per available room). This is the leading metric from which all hotels will judge their success or failure. Because of this, they are primarily concerned about what is going to affect people going to their hotels – the things that are outside of their control - as h otels do well on managing their internal risks. Once we understand that, we can analyse trends that matter and look to develop solutions.” “For instance, if there is an issue post Brexit and individuals in Europe needs a visa to get into the UK, that is not necessarily a good thing for the hospitality sector. Geopolitical issues – such as a political fallout between two countries that affects

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travellers going back and forth – can be highly destructive for the hotel industry. “Pandemics are another risk that can have a tremendous effect on this industry. If the WHO suddenly advises no travel to a certain country or region, that could simultaneously impact the entire industry in a single geographical area. These are key things that our clients are concerned about that the insurance industry hasn’t traditionally looked at. As specialists, we need to recognise these risks and develop innovative products and solutions to at least mitigate potential losses.”

What are the challenges in insuring this industry? “The majority of hotel groups have very thin risk and insurance management functions, despite their large turnovers. A global programme across a dozen countries can be controlled by just two people. So one of the challenges for us as a broker is to not only help with the administrative burden of insurance, but carry out our role as their devolved risk management function. They have to trust that we are looking ahead, identifying trends and bringing new ideas to them. ”

How is the hospitality industry changing? “There are a huge number of changes happening in the market at the moment. We have the biggest generational change since the 1950s with the rise in millennials, and guess where they spend their money? In the hospitality and leisure sector. But not in the way it’s traditionally been done. They want everything all at once – an experience, dining, dancing, accommodation – but they don’t want to pay very much for it.” “In addition to that, hotels no longer ‘own’ their brand. The likes of Trip Advisor do. If a guest has a bad experience, it can be

immediately communicated to hundreds if not thousands of people via review sites. Those factors are having a large financial impact on the hotel market.”

What is your prediction for the future of this sector? “There are a huge number of changes happening in the market at the moment. We have the biggest generational change since the 1950s with the rise in millennials, and guess where they spend their money? In the hospitality and leisure sector. But not in the way it’s traditionally been done. They want everything all at once – an experience, dining, dancing, accommodation – but they don’t want to pay very much for it.” “In addition to that, hotels no longer ‘own’ their brand. The likes of Trip Advisor do. If a guest has a bad experience, it can be immediately communicated to hundreds if not thousands of people via review sites. Those factors are having a large financial impact on the hotel market.”

FINANCIAL INSTITUTIONS

SIOBHAN O’BRIEN Managing director MARSH

Starting her insurance career on the financial institutions teams at a small UK broker, Siobhan O’Brien went on to work at a large global broker, servicing international financial institutions. In 2000, O’Brien joined Marsh in London before moving to Marsh’s New York City office to lead the financial institution placement team for seven years, which coincided with the global financial crisis. Then in 2013, she returned to London to run the financial institutions team, where her role gave her an overview of global financial institutions, clients and markets. Last year, O’Brien was appointed to client service director for the firm’s financial and professional practice; a role that allows her to work with clients from all areas of the world.

What are some trends you are seeing impact the financial services industry? “Trends have come and gone for financial institutions, with the most difficult years being throughout the global financial crisis,

where lending practices and mortgage sales were of most concern. “Following the foreign exchange rate rigging and mis-selling of payment protection, insurance regulatory oversight has become even more onerous for financial institutions. Regulatory reach has become more global as financial institutions have become more international in their operations. “Aligning operational risk to insurance solutions is becoming more important to the FI client sector. Cyber risk, theft of client data and extortion by hackers are now key risk areas for all financial institutions. Ensuring the safety of client data is extremely important, as is the ability to continue trading in the event of a business interruption event. “From bricks to clicks – financial institutions are facing a challenge to remain relevant in the 21st century to a more mobile client base. Over recent years, the biggest changes have been digital transformation in the financial institution sector. “Changing customer profiles have meant banks need to offer more services online, and subsequently we have seen the number of physical branches reduce. Furthermore, fintechs have become disrupters to traditional banking, insurance and asset management practices and are attracting the millennial customer base with their on-line offerings. “Brexit has presented new challenges for financial institutions, around issues such as passporting, attracting and retaining employees and future uncertainty.”

What are the challenges and risks in insuring this industry? “Systemic risk, such as foreign exchange rate rigging and the mis-selling of payment protection insurance in the UK, implicated several banks simultaneously. Insurers are increasingly cautious about covering closely

correlated risks. Multi-jurisdictional regulatory investigations are becoming more commonplace for FIs and, therefore, more expensive for insurers to defend. “Conduct risk, including product mis-selling and suitability of products for clients, is an area of increased concern for insurers. “Insuring the cyber risks of financial institutions has become more commonplace and insurers need to fully understand the needs and concerns of clients when offering cyber insurance. Additionally, we need to consider all aspects of cyber exposure, including any suit brought against boards of directors following a cyber event.”

What do the years ahead hold for the financial services insurance industry in the UK? “Cyber is moving further up the agenda for financial institutions. There has been a lot of press around the attacks, and this has highlighted the need for preparedness by financial institutions. Insurer offerings will therefore likely become more concentrated on the cyber exposures of financial institutions, rather than traditional crime and civil liability offerings. “We anticipate a growing trend in financial institutions partnering with fintech organisations to develop new technologies, which will lead to further expansion in the use of digital channels through which financial institutions can distribute their services. There are also increasing opportunities for financial institutions to use their consumer data and analytics to understand customer behaviour and deliver more personalised product offerings.”

Any additional thoughts? “It’s extremely important that insurance offerings are more closely aligned to the operational risks of financial institutions, and that the products and capacity available are relevant and adequate to the risks being faced.”

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FEATURES

LEADING US RISK MANAGERS

AMERICA’S LEA

MANAG Protecting major companies from threats of all shapes and sizes, these 71 men and women are at the forefront of managing the US’s growing risks

INDEX OF LEADING RISK MANAGERS COMPANY

PAGE

American Airlines Group Inc.

NAME

COMPANY

PAGE

28 Jennifer Saddy

Cleveland Clinic

Amtrak

24 Phil Balderston

Archdiocese of Indianapolis

28 Mike Witka

AT&T

Bank of America

NAME

COMPANY

PAGE

44 Charles Kolodkin

Ford Motor Company

29 Dave Webb

Columbia Sportswear

28 Cameron Williams

Fox Entertainment Group LLC

24 Kirsten Dial

Comcast

44 Donald Aspinall

GPS Hospitality

25 Sally Detter

Cook Group Inc.

32 Nada Jandrich

Hilton Worldwide

29 Denis McCarthy

24 Geoffrey S. Greener

Costco Wholesale

34 Dale Anderson

Honeywell International

25 Paul Piazza

Best Buy Co. Inc.

43 Mary Peter

Dallas/Fort Worth International Airport

37 Michael Yip

Hyatt Hotels

42 Mark Baker

BP Energy Company

43 Gary Taylor

Dole Food Company

42 Jeff Stolle

Iron Mountain

44 Jack Faer

Burberry

38 Holly Wentzel

Dollar Tree Stores

43 David Jewell

Keck Medicine of USC

32 Josh Hyatt

Caterpillar Inc.

36 Rob DeCamp

E. & J. Gallo Winery

40 Jeff Wilson

Kimberly-Clark Corporation

36 Ray Van Eperen

Charles Schwab

35 Nigel J. Murtagh

Exelon Corporation

43 Michael Mee

The Kraft Heinz Company

43 Toni Herwaldt

City of Los Angeles

25 Zernan S. Abad

Facebook

Helen Chue

Lockheed Martin

38 Scott Williams

City of Philadelphia

37 Barry Scott

Fiat Chrysler Automobiles

Sigmund E. Huber

Loews Hotels

36 Karen Beam

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Jennifer De La Torre

NAME

DING RISK

ERS 2017 THE MODERN business world is inundated with

evolving technology and emerging risks, threatening the operations and livelihood of companies across the country and in every industry. Tasked with keeping potential threats at bay, risk managers work to create processes and procedures to mitigate and prevent loss –

COMPANY

PAGE

Lyft

COMPANY

PAGE

NAME

COMPANY

PAGE

44 Melissa Gale

Simon Property Group

Michael Horvath

UPS

25 Mike Fenlon

Merck & Co. Inc.

40 Eric Dobkin

Smithsonian Institution

39 Katherine Tkac

Verizon Enterprise Solutions

29 Mike Kimiecik

Mercy Medical Center

27 Kay Crist

Sprint Corporation

33 Cason Coplin

VW Credit

34 Richard Vassar

Merrick & Company

24 Carter Boardman

St. Joseph Health System

40 Lisa Ramthun

Walmart

42 Bob Pastore

Molson Coors Brewing Company

32 Rafael Castillo

Walgreens Boots Alliance

37 Michael McGarry

Nike

40 Lee Bradley

St. Jude Children’s Research Hospital

Walt Disney World Resort

30 Michele Adams

SunEdison

42 Sara Kane

Wawa Inc.

Tiffany & Co.

26 Laura Woop

Turner Broadcasting System

Wells Fargo & Company

30 Michael J. Loughlin

29 Neil Walls

The Wendy's Company

44 Bob Bowman

Noble Energy

NAME

and they rely on insurance brokers as a major piece of that puzzle. Representing corporations from major municipalities and museums to adventure-wear manufacturers and wineries, these 70 risk professionals are committed to protecting the integrity of some of the world’s most recognizable brands.

38 David Gresko

LaKeisha Sisco-Beck

NAME

Douglas Schultz

Oracle

30 Thomas Iurlano

PepsiCo

26 John Adams

Procter & Gamble

Christopher Gallagher

Tyson Foods

30 Brian Rogers

WGL

26 Nigeria Bloczynski

Ruby Tuesday Inc.

Michael Barrett

United Continental Holdings

34 Andy Nottestad

Zappos.com Inc.

33 Nicole Moya

Sears Holdings

38 Larry Jenchel

United Technologies

26 Connie Bartels

Zaxby's Franchising

26 Deborah Andrews

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FEATURES

LEADING US RISK MANAGERS CARTER BOARDMAN Vice president, contracts and risk management Merrick & Company Greenwood Village, CO

PHIL BALDERSTON Director, risk management Amtrak Washington, DC

According to the National Transportation Safety Bureau, nearly 1,000 people are killed in train-related accidents each year. Since 2012, Phil Balderston has served as director of risk management for Amtrak, keeping his finger on the pulse of these

everyday risks and exposures. Operating more than 300 trains daily, Amtrak serves more than 500 destinations, covering 21,000 miles across 46 states, the District of Columbia and three Canadian provinces. Prior to joining Amtrak, Balderston worked for major insurance brokerages Arthur J. Gallagher and Marsh, and served as director of the Children’s Hospital of Philadelphia.

For 16 years, Carter Boardman has served as director of contracts and risk management for civil engineering firm Merrick & Co., and was elected as the company’s newest vice president in late 2016. He now also oversees risk management in Merrick & Co.’s UK offices, in addition to managing contract and consultant agreement preparatory work and administration for all federal, municipal and private-sector projects in the US, Mexico and Canada. As head of risk, Boardman works directly with brokers and major underwriters on the company’s insurance needs, and with outside support services for legal and other special insurance requirements. Boardman has nearly four decades of experience in contract/subcontract administration for a wide range of foreign and domestic engineering and construction projects, including hydroelectric, wastewater, mineral and oil & gas projects.

KIRSTEN DIAL Director, risk management Fox Entertainment Group Los Angeles, CA

An estimated 111 million Americans tuned into Fox to watch the Super Bowl this year. One of the most recognizable entertainment companies in the US, Fox Entertainment Group operates filmed entertainment, television stations, television broadcast networks and cable network programming. Kirsten Dial handles the corporate risk management for the media giant, which owns the 20th Century Fox film studio, Fox television network and more. An entertainment insurance broker, underwriter and risk manager, Dial oversees the risk management for feature, television, movie-of-the-week, direct-tovideo, sports, news and reality productions.

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GEOFFREY S. GREENER Chief risk officer Bank of America Charlotte, NC

In 2016, Bank of America was ranked as the 11th largest company in the world by Forbes. As Bank of America’s chief risk officer, Geoffrey Greener is responsible for overseeing the company’s governance

and strategy for global risk management and compliance. Since joining the bank in 2007, Greener has held a variety of senior roles, including enterprise capital management executive and head of global markets portfolio management. He also has chaired the bank’s Global Markets Capital Committee and its Global Banking and Markets Regulatory Reform Executive Committee.

PAUL PIAZZA Vice president, risk management Honeywell International Morristown, NJ

Paul Piazza has been with home products manufacturer Honeywell International for 11 years, serving as vice president of corporate risk management as well as assistant treasurer. He oversees the company’s global property & casualty programs, which include two captives, management/financial lines and several liability programs for the company’s various operations, including aviation, nuclear, environmental, marine/transit and professional services. Piazza and his team are also responsible for M&A due diligence and the placement of representation and warranty policies. Piazza started out in insurance as an underwriter and claims professional at AIG before taking on risk management positions in various companies, including Hilton Hotels and Barnes & Noble.

SALLY DETTER Director, risk management GPS Hospitality Atlanta, GA

Sally Detter manages all aspects of the property & casualty program, claims management, safety and loss control, and risk exposure analysis and mitigation for GPS Hospitality, which owns and operates more than 430 Burger King and Popeyes restaurants in 14 states across the country. Prior to her current role, Detter worked in risk management for several major corporations, including Hooters and Hartsfield Jackson Atlanta International Airport.

ZERNAN S. ABAD Senior risk manager City of Los Angeles Los Angeles, CA

Experienced risk management professional Zernan Abad has worked in city risk management for well over a decade, a career that has taken him across five different departments. In 2005, he took on the role of risk manager and created risk management best practices for the Los Angeles Department of Recreation and Parks. He then moved on to the risk management and audit

division of the Los Angeles Department of Transportation before taking on his current position as a senior risk manager in the city’s central risk management office, where he oversees its insurance compliance system, manages the city attorney’s Attorney Conflicts Panel Program, and provides assistance to the mayor’s office on citywide risk and liability issues. According to Abad, the city’s main risk issue for 2017 is workforce health and safety, which involves leveraging technology by implementing a risk management information system that will properly monitor the city’s risk and liability profile. “The risks to the City of LA have evolved tremendously over the past decade and in recent years,” he says. “Hazard risks are no longer the major focal point, and the city’s enterprise risk portfolio has become more diverse and complex.” Among the latest exposures facing the city, Abad highlights risks like terrorism, cyber, aircraft (use of drones), special events (LA’s bid to host the 2024 Olympics), transportation (electric vehicle ridesharing), ADA, pension, technology and increased police litigation, as well as new political risks involving the potential for federal funding removal and major immigration travel and residential policy reform.

MIKE FENLON Senior director, global risk management UPS Atlanta, GA

Mike Fenlon heads global corporate risk management for the world’s largest package delivery company, UPS, which serves more than 220 countries and territories. Since 1993, Fenlon has been responsible for a wide range of liability programs, including auto, cargo and warehouse, property, aviation, management, and general liability, as well as management of all property & casualty claims. He is also in charge of two captive insurance companies, and is a core member of the company’s Enterprise

Risk and Crisis Management Steering Committees. Fenlon has been an active member of RIMS for nearly two decades, where he has served in various capacities for the Atlanta chapter, and he is currently a member of the External Affairs Committee on the national level.

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FEATURES

LEADING US RISK MANAGERS

LAURA WOOP Director, risk management and credit services Tiffany & Co. New York, NY

Tiffany & Co. continues to be a power luxury brand, as witnessed by its sales growth in Asia-Pacific region in late 2016 – a 7% increase in total sales and 16% for Japan alone. Laura Woop has been with Tiffany’s finance division since 1991 and took on various positions before becoming director of risk management and credit services. Woop is responsible for the company’s global insurance programs and operational risk management, and for addressing risks related to fraud, payments and credit. Woop also manages the company’s private-label credit program, which includes credit extension, customer relations and collections.

CONNIE BARTELS

NIGERIA BLOCZYNSKI

Senior director, risk management United Technologies Farmington, CT

Director, risk management WGL Washington, DC

Air-conditioning company Carrier made headlines last November after striking a deal with newly elected President Trump to keep nearly 1,000 jobs in Indiana instead of moving them overseas. As one of the companies in United Technologies’ portfolio, Carrier is just one brand that Connie Bartels oversees risk management for. Her responsibilities include managing the company’s property & casualty hazard risks through risk financing, captive funding, and insurance placements and services. Additionally, Bartels serves as a chapter officer of the Fairfield/Westchester chapter of RIMS.

A leading source for energy solutions in 30 states, WGL provides natural gas, electricity, green power and energy services. Directing the entity’s daily risk assessment is Nigeria Bloczynski, who is responsible for market, credit, enterprise and certain operational risks at the energy company. Relying on more than 15 years of experience in the capital markets, structured products and energy industry, Bloczynski has developed new business and strategy assessment processes within WGL to help identify and monitor risks associated with new initiatives before the company commits to executing transactions.

DEBBIE ANDREWS

JOHN ADAMS

Senior director, risk management and insurance Zaxby’s Franchising Athens, GA

Head of enterprise risk management PepsiCo Purchase, NY

Zaxby’s has delivered flavorful chicken meals since the 1990s. Today, the restaurant chain offers franchising opportunities for restaurateurs, and has become the fastest-growing chicken chain in the nation, boasting more than 700 locations in 17 states. As the company’s senior director of risk management and insurance, Debbie Andrews partners with Zaxby’s leadership to ensure risks are identified and proactively managed for the franchise chain.

As head of enterprise risk management at food and beverage giant PepsiCo, John Adams provides leadership to the senior management team on significant strategic, operational, financial and reputational risks, and works with the company’s businesses to develop the strategies, processes and tools for risk mitigation. Prior to his current position, Adams served in various roles at PepsiCo, including as head of investor strategy, CFO for the company’s global procurement

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organization and VP of finance for its international beverage division. Adams is also a member of the Board of the Business Consortium Fund, the nation’s most comprehensive financing and business support organization dedicated exclusively to serving mid-sized to large minority-owned businesses. He also sits on the advisory committee of the Center for Excellence in Enterprise Risk Management at St. John University’s Peter J. Tobin College of Business. FAST FACT

The first American slogan for Pepsi was “Twice as much for a nickel”

KAY CRIST Risk manager Mercy Medical Center Cedar Rapids, IA

Serving as both controller and risk manager for Cedar Rapids' Mercy Medical Center, Kay Crist’s responsibilities began with ensuring adequate coverage for the center’s buildings and equipment, and have now significantly expanded with the growth of the organization. Mercy Medical Center faces risk issues related to natural disasters such as flood and tornado, as well as the ever-present cybersecurity risk, which will remain at the top of Crist’s agenda for the near future. To help manage these risks, Crist looks for an insurer partner “that anticipates our needs and keeps abreast of changes within the organization, such as new services, so they can ask the right questions and ensure we have appropriate coverage.”

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LEADING US RISK MANAGERS CAMERON WILLIAMS Director, global risk management Columbia Sportswear Portland, OR

For more than 70 years, Columbia Sportswear has designed gear that allows adventurers to enjoy the great outdoors. Since 2010, Cameron Williams has been leading risk management initiatives for Columbia, working from the company’s home base in Portland and drawing on a background in corporate risk management and insurance broking. Prior to joining Columbia, Williams was an account executive for Aon Risk Insurance Services West, before which he spent 10 years at Nike, where he was responsible for managing the sportswear giant’s global risk control function, property & casualty and executive risk coverages, and insurance captive. Williams has identified cyber-related risks as Columbia’s main concern in recent years, “like many organizations that live in the direct-to-consumer space.” To address these risks, he has had to look not only at contractual risk transfers, but also at risk mitigation with the help of the IT teams. Another major challenge for Williams is making sure that risk management and mitigation are duly integrated into Columbia’s operations outside the US, which requires his team “to understand the unique business environment at [the] country level.” Given his extensive background in insurance, Williams values a close working relationship with underwriters, and enjoys helping them to “see beyond what they find on the application, the internet or in other public-facing information” and recognize the company’s management and internal efforts toward risk mitigation.

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JENNIFER SADDY Director of workers’ compensation, corporate insurance and risk management American Airlines Group Fort Worth, TX

Jennifer Saddy’s earliest involvement and first major project for American Airlines Group was overseeing workers’ compensation and risk management amidst the merger of two of the largest airlines in the country – American Airlines and US Airways – which led to the formation of the company. Saddy has been involved in workers’ compensation for more than 15 years, and this remains one of her key responsibilities within AAG. Her accomplishments have been highlighted in a number of publications and at industry events, making her a highly profiled risk professional. Saddy was one of the key presenters at the 2016 National Workers’ Compensation and Disability Conference last December, during which she shared the details of their success in claim settlements with the help of two partner companies.

FAST FACT

Together with regional partner American Eagle, AAG offers an average of almost 6,700 daily flights

MIKE WITKA Director, risk management and parish financial services Archdiocese of Indianapolis, IN

Entering the insurance business straight out of college in the 1970s, Mike Witka worked on the carrier, broker and agency sides of the industry before moving into risk management. Today, he leads the placement of insurance to protect assets and personnel for the entire Archdiocese of Indianapolis enterprise, which covers more than 39 counties, 130 parishes,

JENNIFER DE LA TORRE Executive director, risk management AT&T Dallas, TX

Previously director of workforce diversity, Jennifer De La Torre became head of risk management at AT&T in May 2015. De La Torre’s previous experience in workforce diversity has involved analyzing its effects on workers’ compensation and disability management, which has undoubtedly strengthened her understanding of this particular type of insurance and the related risk management strategies and measures. Since 2010, De La Torre has been a member and fellow of the Claims and Litigation Management Alliance, an industry organization designed for claims and litigation management professionals. 69 schools and six Catholic charities throughout central and southern Indiana. “I felt called to help the church in her need for risk management and bringing the attention of a proper blend of self-insurance, insurance, risk management and financial responsibility to the position,” Witka says. With the advent of terrorism and cyberattacks in recent years, Witka has had to think differently about handling risks for the archdiocese in today’s world. “For this year, I am concentrating on security issues in all of our locations,” he says. “Locked buildings have never been the way of the church, but society has made us more aware of the dangers to open buildings versus the safety of our employees and schoolchildren.”

MIKE KIMIECIK Associate director Verizon Enterprise Solutions Denver, CO

DAVE WEBB Director, global risk management Ford Motor Company Dearborn, MI

Ford recently announced its intention to have fully autonomous cars on the road by 2021, following a growing trend among

automakers that will inevitably expose the industry to new risks. Responsible for managing insurable risks for Ford and its global affiliates is Dave Webb, the company’s director of global risk management. Webb is also responsible for handling foreign exchange, commodity, interest rate and counterparty risks for Ford.

DENIS MCCARTHY

NEIL WALLS

Chief risk officer Hilton Worldwide Washington, DC

Director, risk management Turner Broadcasting System Atlanta, GA

A globally recognized hotel brand, Hilton’s 13 distinct brands encompass more than 4,800 properties across 104 countries and territories. Chief risk officer Denis McCarthy has been with Hilton since 2009, first serving as SVP of finance and corporate controller. Prior to Hilton, McCarthy was EVP and chief accounting officer for Interstate Hotels and Resorts, a hotel management company with brands such as Marriott and Wyndham.

Most Americans are familiar with CNN, TBS, TNT, Cartoon Network and the many other news, sports, entertainment, animation and young adult programs that are created by Turner, a global media company. A former senior risk manager for the company, Neil Walls has served as Turner’s director of risk management since 2014. Prior to Turner, Walls held the role of regional risk manager for Macy’s.

Mike Kimiecik leads the global security management and cyber risk programs at Verizon Enterprise Solutions. With more than 25 years of experience in the telecommunications industry, Kimiecik has spent the past 15 years focused on network and cybersecurity. First starting his career on the network side of the business, Kimiecik became involved in cybersecurity engagement, responsible for security operations in the private and public sector. Prior to Verizon, Kimiecik held leadership roles with Equant, Global-One and Alcatel Data Networks, and engineering roles with Alcatel Data Networks, Sprint, GTE and the federal government. He is also a US military veteran, having served six years in the US Coast Guard. Today, Kimiecik focuses on the continued evolution and development of sales and service delivery for the company’s security management, application security and cyber risk programs. “There is always a constant state of flux with emerging technologies entering the space,” he says. “At the same time, many of the same issues continue to occur, as companies have often become more focused on compliance as oppose to risks. Security is key for everyone in an organization, not just the security teams. We have found that 80% of attacks are motivated from an opportunity for financial gain. Doing basic things to protect yourself and your assets are critical, such as reducing risk through regularly conducted assessments of your environment to identify risks, and take appropriate action to prevent or reduce the likelihood of a cyberattack.”

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LEADING US RISK MANAGERS BRIAN ROGERS Manager, corporate insurance Tyson Foods Fayetteville, AK

The world’s largest processor and maker of protein food products, Tyson Foods sells to retailers throughout the US and in 130 countries worldwide. As manager of corporate insurance, Brian Rogers manages the casualty, property, cargo/marine and product recall insurance programs for Tyson. Prior to his current position, Rogers served as senior risk finance analyst for the company, managing Tyson’s $400 million subsidiary insurance company.

MICHAEL J. LOUGHLIN Senior executive vice president and chief risk officer Wells Fargo & Company San Francisco, CA

As chief risk officer and SEVP at Wells Fargo, Michael Loughlin oversees all risk-taking activities at the bank, including credit, market, operations, compliance and IT risks, as well as financial crimes risks like the bank’s recent sales scandal. Taking the helm as chief risk officer in 2006, Loughlin serves as the leader of Wells Fargo’s corporate risk group, and also serves on the company’s Operating and Management Committees.

MICHELE ADAMS Vice president, risk management services Walt Disney World Resort Orlando, FL

THOMAS IURLANO Director, global risk management Oracle Redwood Shores, CA

One of the solutions Oracle provides is governance, risk and compliance management, which the company describes as “a unified approach that equips organizations to set clear accountabilities for risk management.” This compels Oracle to demonstrate the quality of its product through its own enterprise risk management. As director of global risk management, Thomas Iurlano’s responsibilities include ensuring consistency in quality and acceptability of risk level for consulting bids across the globe, overseeing compliance for all major projects in terms of documented practices and procedures, and promoting standard risk management practices across all emerging business sectors through the help of different divisions and global service lines.

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Believing it a worthy cause to help Disney keep its reputation as the happiest place on earth, Michele Adams decided early on to align her skills to the company’s needs; she first joined Disney as a claims adjuster, where she diligently took on various tasks ranging from managing provider relations to handling data analysis, and was soon promoted to director of claims management and business strategies in 1996. In early 2015, Adams became vice president of risk management services, and now leads all aspects of the resort’s risk management program while maintaining expertise on claims management, data analytics and technology. Adams is a member of the Alliance of Women in Workers’ Compensation and was recently inducted to the Florida Workers’ Compensation Hall of Fame. She is also past co-chair of the Medicare Advocacy Recovery Coalition.

FAST FACT

On opening day of Walt Disney World in 1971, an admission ticket was only $3.50

SIGMUND E. HUBER Director, global supplier relations and risk management Fiat Chrysler Automobiles Auburn Hills, MI

A former bankruptcy and corporate lawyer, Sigmund Huber’s previous role as in-house counsel for FCA US often saw him supporting the purchasing group on risk management issues and general corporate contracts. That experience helped pave the way to his career today in supplier risk management. First joining FCA US in 2008, Huber was appointed in 2015 to his current role as director of global supplier relations and risk management, where he is responsible for improving supplier and industry relations, supplier risk management and much more. Working in such a dynamic industry allows Huber to manage unique risks and challenges related to the supply chain.

“In the auto industry, we are a little unique from other industries in that we have a very high dependence on our supply base,” he says. “If a supplier is having operations issues and can’t supply, in other industries, you can change suppliers relatively quickly. For us, that is not possible due to the complexity of the parts and the requirements to comply with safety and other regulations.” To combat the risks associated with the depth of the auto supply chain, Huber and others are working to map the best route for lower-tier suppliers. “Currently we have visibility with the companies that we have purchase orders with,” he says. “But when you get below that, our visibility gets murky. That’s one of the key trends right now in the automotive industry – to gain greater visibility in order to better manage risks in the lower tiers of the supply chain.”

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LEADING US RISK MANAGERS JOSH HYATT Executive director, office of integrated risk management Keck Medicine of USC Pasadena, CA

With more than 25 years of experience in healthcare and risk management and a background in fields such as mental health, federal and state regulations, risk management, healthcare compliance, and education, Dr. Josh Hyatt currently serves as executive director of integrated risk management for Keck Medicine of USC. Starting his career as a mental health counselor, Hyatt became licensed as a healthcare risk manager after becoming interested in the diverse curriculum. Today, he leads the office in monitoring and mitigating operational risks within the health system, which includes three hospitals and multiple outpatient centers. “We have a boundless number of patient safety issues that we look at on a day-to-day basis,” he says. “In healthcare, we focus on patient safety because if you prevent harm to patients, you will often prevent loss in the long-term to the institution.” Hyatt points out that the healthcare industry is highly regulated, which ties in closely with risk management. “When you walk into a hospital, everything you do is regulated, except for when you go into the bathroom and close the stall door,” he says. “In healthcare risk management, you have to understand how everything works. This is such a dynamic and evolving discipline, and that’s why I have been in it for so long.” In addition to his role at Keck Medicine, Hyatt is also president of the Southern California Association of Healthcare Risk Management, and serves as faculty for the American Society for Healthcare Risk Management, where he teaches the Certified Professional in Risk Management [CPHRM] designation course to help a new generation enter the healthcare risk management environment.

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RAFAEL CASTILLO Director, global risk management Molson Coors Brewing Company Golden, CO

Rafael Castillo joined Molson Coors as risk manager amidst the company’s national expansion in 1987, and three years later became the director of risk management. Since then, Molson Coors has grown into a global business. In 2007, Castillo introduced enterprise risk management to the company; he continues to manage that program today. For Castillo and his team, risk management is all about strategic collaboration – analyzing how risks can be dealt with and mitigated to help achieve business goals and improve the bottom line.

NADA JANDRICH Director of insurance Cook Group Bloomington, IL

Over the past three decades, Nada Jandrich has worked for Cook Group, a family-owned medical device

manufacturer serving 135 countries worldwide. She’s spent the last 12 of those years in risk management, currently serving as director of insurance for the company. “I was interested in this position because it’s so exciting and dynamic,” Jandrich says. “It allows me the opportunity to provide real value to the corporation through various risk-transfer options and strategic data analysis.” For Cook Group, which builds medical devices for more than 40 medical specialties, risks and exposures are plentiful and ever-changing. Managing a dynamic insurance program with upwards of 125 insurance policies, Jandrich relies on a wide range of insurance carriers, including accessing markets in Bermuda and London to cover exposures related to the manufacturing of medical equipment. “Tolerance is changing globally, and we are seeing more regulatory scrutiny on cyber and directors & officers liability,” she says. “Also, renewals in general are requiring more meaningful submissions. Risk concerns continue to increase exponentially. You can’t be short-sighted and manage from your desk. I now work in close partnership with brokers and insurers.”

LAKEISHA SISCO-BECK Enterprise risk manager and counsel St. Jude Children’s Research Hospital Memphis, TN

LaKeisha Sisco-Beck found her calling when she began her first job as a registered nurse; the orientation process included a

segment with the hospital risk manager. “During that session, she discussed key laws that impact the day-to-day work of healthcare providers,” Sisco-Beck says. “She also described her role in coaching staff through challenging patient/family situations, working to navigate medicalethical dilemmas, and working with

clinicians and hospital leaders to manage patient safety events and resulting claims. I knew then that I had found my niche.” After later becoming a hospital risk manager and then working as an attorney for a few years, Sisco-Beck joined St. Jude Children’s Research Hospital, the organization that pioneers the way the world understands, treats and defeats childhood cancer and other life-threatening diseases. She now works with the organization’s chief legal officer to lead risk management efforts enterprise-wide. Thanks to her unique credentials as a registered nurse, attorney and certified professional in healthcare risk management, Sisco-Beck is an expert on legal and risk management issues in the healthcare arena. “My concerns have broadened in scope over time,” she says, “moving from concerns about processes governing incident management and incident resolution to concerns about our ability to identify emerging risks and develop processes to manage emerging risks more proactively.”

NICOLE MOYA Risk manager Zappos.com Seattle, WA

CASON COPLIN Vice president, risk management and customer profitability Sprint Overland Park, KS

Cason Coplin is vice president of risk management and customer profitability at Sprint, which, with 59 million US customers, is the fourth-largest mobile network in the country. In addition to serving in a variety of roles for the mobile and internet service provider through the years, Coplin also founded EcoFit LED Lighting and was a co-founder of the Clayton Early Childhood Center.

In an era when online retailers are quickly rising to the top of the pack, Zappos is no exception. The online shoe and clothing store reached $1 billion in annual sales in 2008; the following year, it was acquired by Amazon for a reported $1.2 billion. Dealing with online customers comes with its fair share of risks, such as the 2012 breach of Zappos’ computer system, which compromised the information of more than 24 million customers. Nicole Moya recently returned to

Zappos in the role of risk manager after serving as risk analyst for Amazon; prior to that, she served as risk management manager for Zappos from 2011 to 2015.

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LEADING US RISK MANAGERS ANDY NOTTESTAD Director, corporate insurance United Continental Holdings Chicago, IL

RICHARD VASSAR Director, risk management & insurance VW Credit Washington, DC

Though it has been a grueling couple of years for Volkswagen following the diesel emissions scandal, the $1.2 billion settlement by the company was recently deemed “credit positive” by Moody’s Investor Services – no doubt welcome news for Richard Vassar and his colleagues at the automaker’s financial

service arm, VW Credit. Vassar joined Volkswagen Group of America in 2008, where he served as risk manager for more than five years before moving to VW Credit in 2013. His career has primarily revolved around “the business end of the insurance transaction,” and in 2009 he received an award for his achievements at Volkswagen Group. Vassar is also the author of the book Hide! Here Comes the Insurance Guy: Understanding Business Insurance and Risk Management.

Airlines face huge risks due to myriad reasons. Recently, a number of airlines experienced power outages that not only delayed flights but also demonstrated their vulnerabilities to possible cyberattacks, thus emphasizing the need for thorough insurance coverage and seamless risk management. As director of corporate insurance for the corporation that operates United Airlines, Andy Nottestad leads a group of insurance managers and claims professionals in managing the company’s global insurable risks by performing risk assessments and mitigation, and arranging risk financing through traditional and alternative techniques. An alumnus of the University of Wisconsin, Nottestad regularly visits his alma mater to speak to students of the risk management and insurance program, sharing his industry knowledge and career insights.

compliance and safety. One notable project Anderson oversaw was compliance for Costco’s warehouses, which involved addressing the risk of

hazardous material spills and waste, along with and other management issues, through partnership with an environmental solutions provider.

DALE ANDERSON Director of risk management Costco Wholesale Issaquah, WA

Dale Anderson has worked on risk management within the hospitality industry, and has also served as general manager for projects related to government contract business. For more than two decades, he has served as director of risk management for Costco Wholesale. He holds a range of responsibilities, from corporate risk management and risk finance and control to overseeing Costco’s global insurance programs, captive and workers’ compensation. Anderson is also charged with ensuring corporate disaster preparedness and business continuity,

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NIGEL MURTAGH Executive vice president, corporate risk Charles Schwab San Francisco, CA

Originally joining investment firm Charles Schwab in 2004 as chief credit officer, Nigel Murtagh’s role expanded in 2009 to include the company’s corporate risk management program. “As a risk manager, you have to keep your eye on all the risks, even the ones you have well managed, or they will turn into problems,” Murtagh says. “Currently, it’s the types of issues that come from the outside, the risks you don’t select, that we are focusing on. For example, cybersecurity risks, where you can be attacked from anywhere in the world, and regulatory risks are not things you ‘select.’ Regulations can change the business or have meaningful impacts on the business, and it is not something you choose to enter into.” In his role as EVP of corporate risk, Murtagh is responsible for enterprise risk management for Charles Schwab, including Charles Schwab Bank, working to identify credit, market and operational risk for one of the world’s largest discount brokerages. “The key for Charles Schwab is where we started – to be the most trusted firm in financial services with the strategy to see the world through our clients’ eyes,” Murtagh says. “Having that foundation for a risk program, based on the vision and strategy for the firm, makes a tremendous difference.”

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LEADING US RISK MANAGERS RAY VAN EPEREN Vice president, global risk management Kimberly-Clark Neenah, WI

ROB DECAMP Director, risk management Caterpillar Peoria, IL

Posting sales and revenue of $38.5 billion in 2016, Caterpillar is one of the world’s leading manufacturers of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. As the company’s director of risk management, Rob DeCamp leads Caterpillar’s FX, commodity and insurance risk management groups.

KAREN BEAM Vice president, risk management Loews Hotels New York, NY

While working for Kraft Foods, one of Karen Beam’s responsibilities was executing contracts for event marketing and trade shows. This allowed her the opportunity to interact with the risk management group. When a position in risk management became available, Beam applied, and “the rest is history,” she says. Today, Beam relies on her 15 years of corporate risk experience in her role as vice president of risk management for Loews Hotels, which owns and operates hotels and resorts

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After starting his career in law enforcement, Ray Van Eperen joined consumer products giant Kimberly-Clark Corporation in 1991 and has served in various risk management positions at the company ever since. In his current role as VP of global risk management, Van Eperen is responsible for designing KimberlyClark’s risk strategy and implementing effective mitigation measures to protect its physical, financial and human assets while shouldering a reasonable amount of risk. In 2009, Van Eperen and his team shifted their focus to enterprise risk management while maintaining their strategies for loss prevention and property & casualty risks. “Years ago, many risk management teams just focused on insurance placements, claims handling and loss prevention,” he says, “but over time, companies recognized the values and the need to move into enterprise risk management.” According to Van Eperen, KimberlyClark, like many global corporations, faces a seemingly endless number of risk issues, but two stick out as primary concerns for this year. “We have global operations in

37 countries, so we have a constant need to track global currency fluctuations and geopolitical risks,” he says. “Emerging risks also stand out as a main concern. I am a big advocate of risk management teams needing to be on the cutting edge of managing emerging risks because they directly impact the business. If you can be proactive in analyzing those risks, it can help you create mitigation plans that lessen the impact.” Passionate about training the next generation of risk professionals, Van Eperen and his team maintain the company’s partnership with the University of WisconsinMadison’s business school by regularly conducting presentations for the students and sharing insights on how the company works to mitigate and leverage risks.

throughout the US and Canada. “There are a number of risk areas that are paramount and on my radar for 2017,” Beam says. “Understanding the nature of our business and the need to keep our guests and team members safe – not only physically, but also protecting their personal identifiable information – cyber liability is one of these issues.” In her role, Beam dedicates a majority of her time to enterprise risk management, viewing risk management through a much wider lens. To achieve desired risk management results, Beam seeks to work with an insurer that is willing to engage in a partnership with Loews.

“For me, this means that we will not only celebrate our success, but also work through difficult markets to ensure that both sides benefit and are treated fairly,” she says. “I also look for new and innovative ideas, not just engaging in ‘renewals as usual.’”

MICHAEL YIP Vice president, risk management Dallas/Fort Worth International Airport Grapevine, TX

BARRY SCOTT Risk manager and deputy director of finance City of Philadelphia Philadelphia, PA

The City of Brotherly Love certainly had an eventful 2016. One of the foundations of the American Revolution, Philadelphia returned to its political roots last year as the host city for the 2016 Democratic National Convention. Working to ensure the safety of the thousands of politicians, celebrities, visitors and more who flooded Philadelphia last July for the

CHRISTOPHER GALLAGHER Associate director, global risk management Procter & Gamble Cincinnati, OH

From Crest and Febreze to Olay and Bounty, Americans rely on many Procter & Gamble brands to perform everyday tasks. Christopher Gallagher is the associate director of global risk management for Procter & Gamble, which has operations in approximately 70 countries. Previously, Gallagher served as the group manager of risk management for the company.

DNC was the city’s risk manager, Barry Scott. Philadelphia’s risk management division covers approximately 30,000 full- and part-time employees across 43 city departments. Scott is responsible for analyzing the city’s insurance and risk exposure issues, including workers’ compensation and claims, while providing safety and loss prevention programs.

FAST FACT

With 1.6 million residents, Philadelphia is the fifth most populous city in the US

MICHAEL MCGARRY Senior director, enterprise risk management Walgreens Boots Alliance Chicago, IL

Created in December 2014 from the merger of Walgreens and Alliance Boots, Walgreens Boots Alliance is the first global pharmacy-led health and well-being enterprise, and the largest retail pharmacy destination across the US and Europe. After working for a variety of companies such as Protiviti and Grainger, Michael McGarry joined Walgreens Boots Alliance in 2015 as its senior director of enterprise risk management.

Larger than the island of Manhattan, Dallas/ Fort Worth International Airport is one of the world’s busiest. Michael Yip has led the risk management initiatives for DFW since assuming the role of vice president of risk management in 2015. Previously, he originated the airport’s enterprise risk management framework and its supporting processes from a consulting capacity. “The focus toward using risk transfer such as insurance as a strategic risk management tool has always been a core foundation for me,” Yip says. “It has allowed me to truly leverage the power of ERM to elevate the risk management function to help drive achievement of strategic goals.” Today, in his role as a senior leader within DFW, Yip has embarked upon a comprehensive transformation of the risk management department at the airport. “As I have always been a proponent of aligning risk management to an organization’s strategy and long-term success, my overarching risk issues have evolved alongside the trends toward globalization, operational efficiencies and enhancing stakeholder value for all the organizations that I have consulted for and worked with,” Yip says. “In my effort to evolve ERM best practices to a new level of strategy integration, the principal risk issues for me in 2017 are directly correlated to elements of the airport’s strategic plan – namely, safety and security, organizational resiliency, and cyber/data privacy best practices.”

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LEADING US RISK MANAGERS

DAVID GRESKO Risk and insurance manager Noble Energy Houston, TX

David Gresko has gone through what he calls the “technical” and “business” phases of his career, first managing the design and construction of oil & gas and petrochemical facilities before working in corporate

finance. These phases paved the way for him to enter risk management armed with a good understanding of various aspects of business. In his current role, Gresko works closely with brokers and underwriting partners to help them understand Noble Energy’s technical and financial risks. Along with many other risk managers, Gresko sees cybersecurity as a top concern for the coming years, though he admits that “every company handles cybersecurity risks differently” and that even the common risks “manifest themselves in different ways in terms of frequency and severity.” Thus, he and his team have worked hard “to demonstrate to the underwriters and their risk experts why [Noble] should be analyzed as a stand-alone risk rather than being lumped into a bigger pool of companies.” Gresko sees insurers as important business partners for Noble, recognizing an underlying interdependence between the industries that requires artful compromise. “There are things that I want that the insurers can’t give me, and there are things that the underwriters want that I can’t give them,” he says. “In the end, though, working as partners, we come to a win-win result … if we drive the insurers into bankruptcy, nobody wins.”

HOLLY WENTZEL

SCOTT WILLIAMS

Risk manager, Americas Burberry New York, NY

Director, enterprise risk management Lockheed Martin Atlanta, GA

With an extensive background in insurance, including stints at Aon and Marsh, Holly Wentzel now handles risk management for British luxury fashion brand Burberry. Part of the chief operating and chief financial officers’ organization, Wentzel develops and implements the risk management, insurance, risk control and business continuity programs for the Americas region.

After President Trump recently proposed a $54 billion increase in military spending, the Pentagon’s largest supplier, Lockheed Martin, experienced a 2% rise in its stock price. Since 2011, Scott Williams has served as the director of enterprise risk management for the global security and aerospace company, which employs approximately 97,000 people worldwide.

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LARRY JENCHEL Divisional vice president, risk management Sears Holdings Hoffman Estates, IL

In his current role as divisional vice president of risk management, Larry Jenchel is responsible for the risk management function for all of Sears Holdings’ businesses, including Sears, Kmart and Lands’ End. Jenchel’s primary responsibilities include risk assessment and financing, as well as the design of Sears Holdings’ property & casualty insurance programs. He also manages the company’s risk management information systems; provides analytical support to claims, safety and operating business units; and oversees the implementation of many of the company’s process improvement projects. Jenchel has also served as risk manager in residence for Ball State University and the Illinois State University’s Katie School of Insurance and Financial Services, speaking to students about Sears’ insurable risks, insurance design and other risk management issues.

KATHERINE TKAC Risk manager Smithsonian Institution Washington, DC

After accepting a position managing the fine art insurance program at the Smithsonian, Katherine Tkac fell in love with reviewing risks and developing methods to mitigate or reduce them. From that point, Tkac took on more responsibility and eventually became risk manager, charged with protecting the assets at the Smithsonian Institution, which is the world’s largest museum, education and research complex. “The Smithsonian has grown by several

museums in the last 20 years, and so have our risks,” Tkac says. “The Smithsonian is continually updating our standards on protection for our collection. With each museum, we have seen risk issues that we had not imagined 20 years ago.” Maintaining and protecting the ever-growing Smithsonian collection is Tkac’s top risk priority for 2017. To do that, she works with insurers and brokers who are “willing to learn the uniqueness of the Smithsonian and work with this knowledge to provide the utmost protection to our assets. Once I have the underwriter understanding the complexity of the Smithsonian, the goal is to have coverage obtained at a reasonable cost.”

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LEADING US RISK MANAGERS ERIC DOBKIN Director, risk management Merck Kenilworth, NJ

Since 2002, Eric Dobkin has worked at global healthcare company Merck, which provides prescription medicines, vaccines, biologic therapies and animal health products to customers and operations in more than 140 countries. Now director of risk management, Dobkin previously held the position of associate director, where he led all aspects of financial risk management related to the company’s existing and potential global liabilities, while also designing risk-transfer and non-risk-transfer structures to manage risk.

JEFF WILSON Director, risk management E. & J. Gallo Winery Modesto, CA

LEE BRADLEY Director, global operational risk management Nike Beaverton, OR

Back to the Future came to life in December 2016, when Nike introduced its $720 HyperAdapt 1.0 self-lacing shoes. As technology and apparel become more intertwined, new risks are certain to arise for the makers of clothing and shoes. Leading Nike’s global operational risk management department into this brave new world is Lee Bradley, who has more than 15 years of experience in managing environmental, safety and health risks. Bradley’s concerns at Nike range from business continuity and crisis management to property protection, risk control and contractual risk transfer. FAST FACT

Nike’s iconic swoosh logo was designed by a Portland State University student, who was paid $35 for the design

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Ever since a college internship with Chubb motivated him to pursue a major in risk management and insurance, Jeff Wilson hasn’t looked back. After graduation, Wilson took on a risk management position with Cummins, a designer and manufacturer of power generation equipment and supplies. Today, Wilson

LISA RAMTHUN Vice president, risk management St. Joseph Health System Orange, CA

After beginning her healthcare career as an emergency room nurse, Lisa Ramthun’s passion for helping people led her to her current position as VP of risk management for St. Joseph Health System. With more than 25 years of experience in healthcare, Ramthun is a recognized thought leader in the areas of risk management, healthcare reliability and patient safety. At St. Joseph, Ramthun has worked tirelessly to revolutionize the organization’s approach to risk management. “Risk used to happen in a silo,” she says. “Now we

leads a staff of six in overseeing insurance, enterprise risk management and business continuity planning for E. & J. Gallo Winery, the largest exporter of California wines. “At the beginning of my career, my focus was on insurance placement, loss prevention and claims management,” Wilson says. “Throughout my career, I have learned that these are just the minimum expectations. With everyone being a risk manager in their own right, the risk management department can, and should, be a valuable resource for the organization by providing valuable risk identification and management solutions that are meaningful, measurable and actionable.” Wilson says his latest focus for E. & J. Gallo has been on business continuity planning and disaster preparedness. “Having robust mitigation efforts and adequate insurance is fantastic, but once a loss event happens, it is critical to get back in business as soon as possible,” he says. “By thinking through the response and recovery procedures ahead of time, business continuity planning allows our operations to respond quickly and efficiently. That’s critical in the beverage industry, where keeping your product on the shelf is vital to remaining relevant to consumers.”

understand the importance and value of an enterprise risk management approach. I believe an enterprise risk model approach, where everyone is a risk manager, is vital in order to make real progress in improving the health and experience of patients and community members, making populations healthier, and reducing the rate of growth in healthcare spending and per-capita cost of healthcare.” Considering the changing landscape of healthcare, Ramthun makes sure to stay up-to-date with the industry’s evolving risks. “There’s a lot of uncertainty in healthcare right now,” she says. “As an organization, we’re monitoring the acceleration of payment reform and potential changes to the Affordable Care Act.”

HELEN CHUE

DOUGLAS SCHULTZ

Global risk manager Facebook Menlo Park, CA

Risk and safety manager Wawa Inc. Wawa, PA

In the past few years, Facebook has made great leaps in connecting even more people around the world and addressing social issues, although the social network’s expansion projects have occurred alongside market changes and contentious issues that pose increasing risks, from net neutrality to the spread of fake news. All of these issues have made Helen Chue’s position as Facebook’s global risk manager more indispensable than ever. “Facebook is constantly evolving and expanding its programs to further the mission of making the world more open and connected,” Chue says. “[This means] spotlighting content, understanding and finding solutions to address the risk exposures from a variety of lenses, such as cyber, business interruption, media and regulatory [concerns].” For the last few years, Chue has found that risk concerns are inevitably linked to “the ever morphing political and regulatory

landscape [and] how the changes affect the business.” This has compelled Chue and her team to always stay ahead in anticipating disruptions, while doing their best to select broker and insurer partners who are equipped to thoroughly understand the nature of Facebook’s business and respond with comprehensive programs and coverage.

MICHAEL BARRETT Director of risk management Ruby Tuesday Maryville, TN

Michael Barrett serves as director of risk management for Ruby Tuesday, overseeing property & casualty claims for its 700 restaurants and more than 40,000 employees. For the past decade, Barrett’s efforts have been crucial in helping the company significantly reduce its workers’ compensation claims, increase safety awareness and thus improve the overall cost of risk. As an expert and consultant, Barrett is engaged in various client-directed counsels, and participates in RIMS and other industry organizations such as the Employer Healthcare Benefits Congress.

Douglas Schultz has served as risk and safety manager at convenience store chain Wawa for more than 15 years. At RIMS’ Annual Conference and Exhibition in 2016, Schultz spoke about the importance of innovation, pointing to how the insurance industry is drawing significant venture capital investments and explaining how the advances made in insurance tech are instrumental to innovation. Schultz also has extensive background in health and safety. He has worked on Wawa’s Fit to Fly 5 initiative, and has drawn on communication strategies and metrics to reduce accidents and illness among employees.

MICHAEL HORVATH Senior vice president, risk management Simon Property Group Indianapolis, IN

Simon Property Group, one of the largest retail real estate owners in the US and the country’s largest mall owner, has 434 department stores and more than 275 restaurants in its portfolio. As senior vice president of risk management, Michael Horvath is responsible for the direction of all commercial insurance programs at the company, as well as the formation of its risk management and safety policies and practices. Horvath pioneered the creation of three captive insurance subsidiaries that have underwritten various liability, property and worker’s compensation risks retained by the corporation over the past two decades. Outside his role at Simon Property Group, Horvath is chairman emeritus of the National Association of Real Estate Investment Trusts’ Insurance Committee. He is also an active member of the Risk and Insurance Management Society, where he has served as the real estate industry chairman for the past decade.

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LEADING US RISK MANAGERS BOB PASTORE Senior director, global risk management Walmart Rogers, AR

Bob Pastore has been part of Walmart’s risk finance team since 2002, and was tasked with setting up a captive insurance program as one of his first major projects. As senior director of global risk management, his responsibilities now include managing insurance programs across 69 operations in 27 countries through traditional and alternative program structures. He is also in charge of developing risk financing strategies and overseeing complex claims resolutions, corporate compliance initiatives, risk management evaluation, and integration of pre- and post-M&A transactions.

MARK BAKER Vice president, risk management Hyatt Hotels Corporation Chicago, IL

Over the past year, Hyatt Hotels’ earnings rose by 148%. Helping to keep the company profitable by managing its various risks is Mark Baker, who entered the hospitality risk management space in 2007 after spending years in the automotive industry, working for large auto suppliers Delphi and TRW Automotive. Apart from his duties at Hyatt, Baker is also an adjunct professor in the hospitality school at DePaul University in Chicago, and has served as a guest lecturer for Illinois State University’s risk management and MBA programs. FAST FACT

The Hyatt portfolio includes 679 hotels and residences in 54 countries, including 75 four-diamond hotels

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SARA KANE Director, insurance risk SunEdison New York, NY

JEFF STOLLE Director, risk management Dole Food Company Los Angeles, CA

A risk management veteran with more than 20 years of experience, Jeff Stolle leads the global risk and insurance program at Dole Foods. The company’s exposures and risks go beyond food-related ones to include everything from ocean marine and cargo risks to corporate and agricultural aircraft. In addition, Stolle is responsible for managing risk and insurance operations for Dole’s sister company, Castle & Cooke.

After spending nearly a decade on the carrier side of the industry, Sara Kane took her insurance expertise to SunEdison, the largest global renewable energy development company, where she currently serves as director of insurance risk. After getting her master’s degree, Kane went to work for AIG Environmental before moving on to GCube Insurance Services and then AXIS Capital. While at AXIS, SunEdison was Kane’s biggest client; when its risk manager job came open in 2015, she moved into that role. “I started as a former property under writer looking at an asset portfolio of 1,400 wind and solar locations around the world, and I put different risk management tools to work using an underwriter hat,” she says. Since she took the job, Kane’s position has expanded in many ways. She helped SunEdison navigate its insurance and surety obligations during a tumultuous 2016 after the company declared bankruptcy, while handling the company’s directors & officers and management insurance. For 2017, the biggest issue on Kane’s radar is “helping to set a culture among project teams to understand the role of insurance and how it can be a valuable tool when considered upfront in transactions.”

Under Stolle’s leadership, Dole has implemented a global risk management information system that assists in the collection, management and dissemination of risk data. Stolle identifies cyber risks as a top issue for 2017, and plans to make significant upgrades this year to the company’s risk management measures for first-party cyber threats. Over the years, he has witnessed massive changes in risk concerns, such that majority of organizational risks have become difficult, if not impossible, to insure. This has required Stolle and his team to strengthen risk mitigation measures, including examining “the risks within [the] entire supply chain and other external factors such as environmental and political risks.”

MICHAEL MEE

DAVID JEWELL

Director of insurance Exelon Corporation Chicago, IL

Vice president, risk management Dollar Tree Stores Chesapeake, VA

Exelon’s companies include six utilities delivering electricity and natural gas to approximately 10 million customers in several states, as well as a sales and services company extending energy products to around 2 million residential, public-sector and business customers. In 2016, Dow Jones, Newsweek and the EPA recognized the company for its corporate sustainability and environmental performance, and Exelon ranked number one among energy and utility companies on the Security 500 list of top enterprise risk management programs for the fifth consecutive year. As Exelon’s director of insurance, Michael Mee takes the lead in helping define the corporate risk and insurance philosophy of the company, choosing the necessary insurance programs, managing loss control and identifying current risk issues, as well as reporting to the company’s Risk Management Committee and Finance and Risk Committee.

As vice president of risk management at Dollar Tree, Dave Jewell is responsible for the development and execution of short- and long-term plans for evaluation, mitigation and financing of insurable and non-insurable risks to the business. His role involves partnering with internal and external teams to develop and implement risk control solutions within business operations, setting levels of self-insurance and risk retention in relation to the company’s risk appetite, and leading the risk management staff in addressing environmental health and safety issues. Before joining Dollar Tree in 2014, Jewell served as director of risk and insurance for PetSmart and led the company to win an award in 2013 for excellence in workers’ compensation. He has varied experience in risk finance, captives, claims management, safety/ loss control and risk management process improvement.

TONI HERWALDT Senior manager, risk management The Kraft Heinz Company Chicago, IL

The makers of some of America’s most iconic brands, including Kraft, Heinz, Capri Sun, Jell-O and Oscar Mayer, the Kraft Heinz Company is the third largest food and beverage company in the US, with eight $1 billion-plus brands in its portfolio. Responsible for the procurement of property & casualty and executive insurance coverage for the $29 billion company is Toni Herwaldt. Herwaldt has revamped the company’s claims handling procedures, worked with the safety department to strengthen workers’ compensation claims handling, developed internal claims reports, streamlined data-gathering processes and more.

MARY PETER Associate director, enterprise risk management and fraud prevention Best Buy Richfield, MN

After spending more than seven years as the director of enterprise risk management for accounting firm Eide Bailly, Mary Peter joined Best Buy in August 2016, and now leads the technology retailer’s enterprise risk management program and fraud prevention initiatives. Boasting more than 20 years of experience in the risk management and insurance industry, Peter is responsible for the leadership innovation, governance and management needed to manage the company’s risk. An innovator in the ERM space, Peter is also the founder of the ERM Roundtable in Minneapolis, a past member of the US Technical Advisory Group, and frequently speaks at conferences and authors articles on ERM topics.

GARY TAYLOR Chief risk officer BP Energy Houston, TX

As one of the world’s largest energy companies, BP Energy develops and delivers oil and gas across the world. As the company’s chief risk officer, Gary Taylor is responsible for operational, market and credit risk activities for BP Energy Company and North American Gas & Power. Taylor was previously BP’s head of market risk, responsible for a staff of 10 that covered the marketing and trading of natural gas, power and NGLs in Houston, Calgary and regional US offices. In May, Taylor will be a speaker at the annual Energy Risk USA conference. FAST FACT

BP Energy expects the global consumption of energy to grow by 30% over the next two decades

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FEATURES

LEADING US RISK MANAGERS JACK FAER

CHARLES KOLODKIN

DONALD ASPINALL

Chief risk and security officer Iron Mountain Boston, MA

Executive director, enterprise risk and insurance The Cleveland Clinic Cleveland, OH

Vice president, global risk management Comcast Philadelphia, PA

Jack Faer leads the global safety, risk and security team at storage provider Iron Mountain, where he is responsible for all aspects of corporate security and safety, including enterprise and insurance risk management, fraud prevention, crisis management, and business continuity. Faer’s role is critical to upholding the company’s brand, especially among its client base of Fortune 1000 companies, for whom the company extends safety and security risk management services. In 2014, the company formed a Risk and Safety Committee to oversee Faer’s area of responsibility and provide greater focus to the work of his team, thus highlighting its significance. Prior to joining Iron Mountain, Faer was senior vice president of operational risk management for State Street Global Advisors; before that, he spent 17 years at Fidelity Investments in various leadership roles, including senior vice president of risk and compliance for the firm’s retirement and outsourcing business. Faer is also a certified public accountant and a former FBI special agent.

Charles Kolodkin oversees enterprise risk and insurance for the Cleveland Clinic, one of the largest healthcare organizations in the country and number two on US News & World Report’s 2016-17 list of best hospitals in the country. Kolodkin has been with the organization since 2005, and is responsible for risk financing, captive operations, claims management and administration of its ERM program. Kolodkin has more than 30 years of experience in insurance, 25 of which have been devoted exclusively to the healthcare industry. He has served as senior vice president at Arthur J. Gallagher, advising multi-hospital systems, physician’s groups and managed care institutions on risk management and finance, and has handled risk management, insurance, professional liability litigation and captive operations for the largest nonprofit healthcare system in Texas. As a thought leader in the risk management space, Kolodkin writes a healthcare professional liability insurance column for the International Risk Management Institute.

In early 2016, Donald Aspinall was promoted to vice president of global risk management at Comcast; he now oversees risk and claims management, as well as risk assessment strategy and implementation, across the Comcast and NBCUniversal businesses worldwide. He also provides direction for the brokers and insurers selected to help the company finance and manage its risks. Aspinall is a director of the company’s two captive insurers and is actively involved in various organizations within the insurance industry. Prior to joining Comcast in 2013, Aspinall served as managing director for strategic account management at Aon, where he led consulting and brokerage teams for global clients.

MELISSA GALE Senior manager, risk solutions Lyft San Francisco, CA

Ridesharing has made plenty of headlines in the insurance industry, thanks to the number of risks that exist for the passengers, drivers and even in the technology. Melissa Gale serves as Lyft’s senior manager of risk solutions, a position she ascended to in January 2016 after a stint as insurance solutions manager. Prior to Lyft, Gale was a risk management specialist for Daymon Worldwide, where she investigated and managed workers’ compensation and

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general liability claims, and developed and administered safety initiatives. Gale also previously served as senior risk analyst for Gap.

BOB BOWMAN Director, risk management The Wendy’s Company Dublin, OH

Bob Bowman entered the insurance industry in 1990 with Safeco Insurance Companies and spent seven years in a variety of auto and property & casualty claims-related roles. He then moved to Macy’s, where he oversaw self-administered general liability, property and workers’ compensation claims groups; risk management systems; IT operations; business continuity planning and crisis management groups; and insurance procurement and program placement. In 2014, Bowman joined Wendy’s, where he is responsible for all aspects of risk management, including insurance coverage placement, claims and risk finance. He also shares responsibility for enterprise risk management, crisis management, and data and privacy risk management. Bowman frequently speaks at conferences and seminars on claims and litigation management.

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