The CHART Exchange April 2019

TABLE OF CONTENTS

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

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Tips To Motivate Your Team - Cost Financial

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Is Working Too Hard Actually Bad For Business?

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Fighting Fraud In Business: Who Takes The Lead?

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FDA Updates Its Position On CBD Upon Signing Of Farm Bill

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HR Audits: Starting Point - Laurdan Associates, Inc.

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Mortgage Regulatory Compliance: Fines Are Not “Fine!”

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Think EPLI: Now More Than Ever... Glenn W. Clark, CPCU

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3 Questions Agents Should Ask About Standing Out From The Competition

Tinder’s Influence On The Future Of Claims Negotiation, Always Swipe Right

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Special Report: Active Shooter/Workplace Violence Cover

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5 Digital Platform Capabilities Every Insurer Should Have

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Lloyd’s Announces Action Plan To Create A Safe & Inclusive Working Environment

Laurence Mackman, Lloyds Of London Stair Tower Detail, CC BY-SA 4.0

SPECIAL REPORT: ACTIVE SHOOTER/WORKPLACE VIOLENCE COVER

APRIL 2019 VOLUME 4 - ISSUE 4 Publisher: CHART Exchange Glenn W. Clark, CPCU Membership Services Kate Boyle Advertising: Kate Boyle Managing Editor: Kate Boyle Contributing Editor: Frank Huver Layout, Design & Circulation: Ron Manera AdMax Corp., Inc.

CHART Exchange

info@chart-exchange.com 3001 Philadelphia Pike Claymont, Delaware 19703 www.chart-exchange.com 302-765-6001 Last Issue:

PREFER TO READ IN PDF FORMAT? DOWNLOAD THE PDF VERSION HERE

ADVERTISING IN THE CHART EXCHANGE MAKES SENSE: CALL KATE: 302.765.6056

EVERYBODY KNOWS ONE Meet Mr. Inappropriate. He is the King of unfiltered commentary. There is no remark too crass or topic too sensitive for this guy. Worse still, he may be working for one of your clients.

The recent Hollywood scandals and resulting rise of the “#MeToo” Movement has made people more sensitive to the prevalence of harassment and other wrongful acts in the workplace. There was a time when otherwise harmless comments from someone like Mr. Inappropriate would have either been brushed off or ignored. Now they may be interpreted to have a more nefarious meaning. This perception can quickly turn into legal action. The cost of defending against such a lawsuit – even a groundless one – could be financially devastating.

Let Rockwood Programs help protect your clients. Our Employment Practices Liability Insurance (EPLI) product protects companies from allegations of discrimination, wrongful termination, harassment, and workplace bullying. Coverage can be further enhanced to protect your client against alleged violations of the Immigration Reform Control Act, Wage & Hour disputes, and Third Party Wrongful Acts.

Visit us at www.rockwoodinsurance.com to learn more

Rockwood Programs, Inc., 3001 Philadelphia Pike, Claymont, DE 19703 p: 800-558-8808 • f: 302-764-5477 • e: sales@rockwoodinsurance.com

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MESSAGE FROM THE EARLIEST ADOPTER

THINK EPLI: NOW MORE THAN EVER...

While there are ample domestic options for handing traditional, one-off EPLI placements, unique situations still require tailored solutions.”

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ontrary to popular belief, our industry can actually be ahead of its time on occasion. Take Employment Practices Liability Insurance (EPLI) as an example.

Back in the early nineties, American International Group (AIG) pioneered a stand-alone product designed to insure a company’s human resource practices. It was an innovative concept when it was launched…but not exactly an instant best seller.

Even as recently as 15 years ago, fewer than 10% of all eligible firms actually purchased the coverage.

Fast forward to today. Recent scandals and the rise of the #MeToo Movement has made people more sensitive to the prevalence of

Glenn W. Clark, CPCU Publisher & Earliest Adopter harassment and other wrongful acts in the workplace. All of this media attention has a ripple effect; visits to the EEOC sexual harassment website page have more than doubled over the past year.

U.S. companies are paying attention to these developments as well.

Firms have spent an estimated $2.2 billion last year on insurance policies covering the legal fallout from sexual harassment, racial discrimination, retaliation, and unfair dismissal accusations. The market is projected to grow to $2.7 billion this year, according to MarketStance – a research firm that tracks insurance trends.

Wolfmann, MeToo hashtag digital text on RGB screen 2017-12-09 version 12, CC BY-SA 4.0

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www.chart-exchange.com

About 41% of firms with more than 1,000 workers now carry EPLI. One-third of all enterprises with at least 500 employees purchase the coverage. Only 3% of companies employing 50 or fewer have bought the product.

Small to mid-size firms are particularly susceptible to the potentially devastating financial consequences of an employmentpractices related claim. Consider the implications of these recent statistics: • •

•

•

The average cost to settle a discrimination claim is $160,000 The median discrimination judgment against an employer is about $200,000 The average cost to settle an employee lawsuit out-of-court is $75,000 (including legal fees) The average amount awarded to employees in jury trials is $217,000.

Remember too that the impact of an employment practices suit is more than just money. These types of cases – even the unfounded or frivolous ones – can result in a damaged business reputation, lower staff morale, reduced productivity, increased potential for future allegations, and lost revenues.

Fortunately, there are a number of markets out there (including Rockwood Programs – www. rockwoodinsurance.com) that can help protect your clients with EPLI coverage. Many of these offerings can be enhanced via endorsement to cover such exposures as Wage & Hour issues, alleged violations of immigration law, and wrongful acts committed against third parties. Separate sub-limits or other restrictions may apply.

While there are ample domestic options for handing traditional, one-off EPLI placements, unique situations still require tailored solutions. The London market has a well-deserved reputation for innovation and underwriting expertise. Are you affiliated with business organization or association populated with members possessing homogenous risk characteristics?

We may be able to design an EPLI offering customized to the specific needs of this audience. The amount of latitude available would be based on a number of different factors, including the size of the prospect universe, propensity to buy the coverage, business classifications, and geographic spread.

Glenn W. Clark , CPCU CHART’S Earliest Adopter

www.chart-exchange.com

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NOW HERE’S A REAL SHOCK… The first firearm liability product that can be sold by independent insurance agents!

It is estimated that nearly 80 million Americans own at least one firearm. But what happens if a law-abiding citizen is actually forced to use that weapon to protect themselves, a loved one, or their personal property? Many homeowner policies specifically exclude firearm use — even in self defense — as a covered exposure, deeming it to be an intentional act. That leaves the gun owner personally liable for legal expenses, bail bond costs, and any judgments awarded through a civil action.

As an insurance agent, you are in the best position to explain the significant personal liability exposure faced by your gun-owning clients. Unfortunately, you haven’t been able to help your clients by offering a product to address this need — until now.

Rockwood Programs now offers a firearm liability policy designed to protect insureds against civil or criminal actions resulting from the use of a gun in self-defense. It is the only one available in the industry that can be sold through insurance agents. A wide variety of limit options are available, ranging from $50,000 to $5 million. Annual premiums start at just $135.

Best of all, we make it easy for you to present the firearm liability product to your clients. An inventory of customizable sales aids is available, including marketing brochures, simplified self-rating applications, and more. Our team can even help provide product-specific content for your website!

Visit us at www.rockwoodinsurance.com to learn more We can also accommodate group accounts (police, security, gun clubs, etc.).

E-mail: president@rockwoodinsurance.com

Rockwood Programs, Inc., 3001 Philadelphia Pike, Claymont, DE 19703 p: 800-558-8808 • f: 302-764-5477 • e: sales@rockwoodinsurance.com

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www.chart-exchange.com

ANALYSIS - PL COMMUNICATIONS

3 QUESTIONS AGENTS SHOULD ASK ABOUT STANDING OUT FROM THE COMPETITION WITH NICHE MARKETING

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WHY SHOULD YOU FOCUS ON NICHE MARKETS?

n today’s insurance market, niche players have an edge over generalists. Many agents feel if they can be everything to every- one they can capture more business. That might have been true before, but in today’s market where insurance is viewed as a commodity you must differentiate yourself to survive.

Prospects appreciate agents who can “talk the talk” about their business without a learning curve. When you know an industry’s liability issues inside out, you are in position to tell potential clients if there are gaps in their coverage that can potentially harm their business. You are not just an agent to them – you are a resource. That’s how you stand out against the competition.

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If you are up against an incumbent who either under or over insured your prospect, you have an edge to get the account. Here’s a caveat – don’t give it all away, so the incumbent can just follow your lead and keep the account.

Some agencies have a focus on one niche such as transportation, but you can focus on multiple niches and be successful. Plus, focusing on niche business does not have to exclude all other types of accounts.

HOW DO YOU IDENTIFY A NICHE? If you haven’t already, break down your book of business to determine the industry segments where you have the most experience. Some agencies are niche players, but they don’t think of themselves or position themselves that way. Agencies build their business on their network of contacts – many of which are in the same or related industries.

bout the author: Paul Lavenhar’s firm PL Communications has provided marketing communications services for 25 years to such insurance clients Rockwood Programs, Capacity Coverage, MetLife, Selective, York Risk Services, and Admiral Insurance, among others. He has has written for 500+ companies in various industries.

Paul also leads a band called GoodWorks that provides music and marketing services to help nonprofits raise money and awareness pro bono. Paul Lavenhar is the principle of the

insurance marketing communications firm PL Communications.

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It is like the 1980’s TV commercial where Heather Locklear told two friends about Faberge Shampoo, and they told two friends, and so on, and so on. You may not have been trying to build a niche, but your network of contacts may have built one for you.

See Niche Marketing Page 25

APRIL 2019

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Merger & Acquisition Services

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Our mission is to provide

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SOLELY FOCUSED ON THE INSURANCE INDUSTRY. This allows our advisors to obtain critical industry knowledge and subsequently, provide clients with sound advice.

M&A Services has closed

MORE THAN 100 TRANSACTIONS IN 10 YEARS and has earned continuous placement within the "Top 5 Financial Advisors in Insurance Underwriting" according to SNL Financial.

Investment banking services and securities transactions are provided through and completed by Merger & Acquisition Capital Services, LLC., a broker-dealer registered with the U.S. Securities and Exchange Commission and member of FINRA and SIPC.

OUR SERVICES Agency M&A Transactions Carrier M&A Transactions Agency Financing Capital Raising Strategic Advisory Valuation Services Program Business Renewal Rights Fronting

info@maservices.com http://maservices.com

(212) 750-0630 320 East 53rd Street New York - NY - 10022 Copyright 2017 Merger & Acquisition Services, Inc. & Merger & Acquisition Capital Services, LLC. All Rights Reserved.

NEW YORK, NY - ATLANTA, GA - MYSTIC, CT - CAYMAN ISLANDS

within the insurance industry by assisting firms with their corporate development and acquisition/divestiture objectives.

M&A Services is

NEWS

LLOYD’S ANNOUNCES ACTION PLAN TO CREATE A SAFE AND INCLUSIVE WORKING ENVIRONMENT Lloyd’s announced a robust plan of action to address reports of sexual harassment in the Lloyd’s market and create a safe and inclusive working environment.

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he plan has been developed in collaboration with and endorsed by Lloyd’s Board and Council, and by the associations representing the Lloyd’s market – Lloyd’s Market Association (LMA), and the London & International Insurance Brokers Association (LIIBA).

This wide-ranging set of actions is intended to increase reporting, impose strong sanctions on those found to be responsible for inappropriate behaviour and create better understanding and awareness of the issues. It includes: Provision of an independently managed, confidential and marketwide access point for reporting inappropriate behaviour.

Confirmation that, where investigations conclude that individuals have a case to answer, they will be subject to sanctions from their own companies and also from Lloyd’s. They may be banned from entering Lloyd’s for a fixed period and potentially for life.

Undertaking an independent and market-wide culture survey to identify the scale and scope of the issue, and to inform further action.

A comprehensive review of policies and practices across the Lloyd’s market, with a view to identifying and sharing best practice.

Changes to Lloyd’s Nominations Committee to increase diversity.

Fiona Luck (Lloyd’s Board) and Vicky Carter (Lloyd’s Council) will join the Committee with immediate effect, succeeding Sir David Manning and Charles Franks.

Lloyd’s CEO, John Neal, said, “It has been distressing to hear about the experiences Provision of of women in the training focused Lloyd’s market. on prevention, as No one should be well as reporting subjected to this sort and supporting of behaviour, and those who have if it does happen, been subjected everyone has the to inappropriate Lloyd’s CEO, John Neal right to be heard and behaviour. for those responsible to be held to These actions are in addition to those account. I am pleased that the market already reported, namely: has given its full support for a strong set of actions, and I am determined A commitment to hear the accounts of the women who contributed to the that Lloyd’s offers a safe and inclusive working environment for everyone.” article published by Bloomberg, in a safe and confidential space.

www.chart-exchange.com

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APRIL 2019

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ANALYSIS - COST FINANCIAL

TIPS TO MOTIVATE YOUR TEAM Motivation can be an organization’s greatest asset. Motivated people try harder and strive to exceed goals and expectations. Here are a few tips to help you motivate your team.

STATE YOUR MISSION AND GOALS

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t’s impossible for people to excel if they don’t know what the goals are.

Make sure that all employees know what the organization’s vision is — its long-term and short-term goals, the “why” of their work.

You also need to set clear, measurable goals, or milestones that every member of your team can achieve as they work toward fulfilling the vision.

RECOGNIZE WORK WELL DONE Money is not the biggest reason that people do good work. Recognition adds a powerful emotional component and drives engagement with the job and the projects.

You can have monthly awards, such as a gift card or lunch coupon, but it also can be as simple as simple as thanking a team member for doing his or her job well. Saying so in front of colleagues can inspire the employee being recognized to continue to do well, or even better, and it can also inspire other employees.

Give feedback Praise employees when they do well, but don’t neglect correcting or guiding them

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when they’re not meeting expectations.

Give feedback frequently and regularly.

DON’T PUNISH FAILURES We all make mistakes sometimes, and no one hits every goal every time. Look at mistakes and failures as teachable moments, opportunities to correct procedures or improve training.

LET THEM MANAGE THEMSELVES No one likes being micromanaged, and most people perform better when they can decide how to do their jobs themselves. Studies show that strategies like flextime, which can allow employees to decide when to arrive and leave work, boost productivity.

Maintain a healthy environment A clean, healthy workplace reassures employees and makes them happier — and healthy, happy employees are more motivated and therefore more productive. Make sure the workplace is cleaned regularly, including carpets, floors and washrooms. If your office has a refrigerator or other kitchen facilities, don’t neglect it — it can be a major transmitter of illness!

DON’T SCHEDULE USELESS MEETINGS

Rather than prescribing everything your team members do, give them clear goals, deadlines and guidance to let them use their abilities to exceed your expectations.

The average professional in the United States wastes close to four hours every week in unproductive meetings.

Schedule meetings only when the organization needs them. Invite only the people who need to be there. Set the agenda in advance and send it to everyone who is coming. Start the meeting on time, and end it as soon as possible.

BOOST TEAMWORK

MOTIVATION MEANS PROFIT

Encourage people to work together in teams. It makes them feel less isolated, and helps them stay focused on goals.

Regular team-building exercises and opportunities for employees to get to know each other better help make teams more effective.

Employees who continually strive to do more and to exceed expectations can be a business’s greatest asset. As a manager, you can do a lot to make motivation a part of your business’s strategy.

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ANALYSIS - COST FINANCIAL

IS WORKING TOO HARD ACTUALLY BAD FOR BUSINESS?

An important first step to making a change is to reflect on what is causing you to work too hard in the first place. Identifying the source could give you the insight you need to change your work habits.”

This sounds counter-intuitive, but when you work too hard, chances are you’ll end up micromanaging your employees. And we all cringe at that word for a reason. Micromanaging undermines your team members’ dedication and sends a message you don’t trust them, plus it adds more to your plate that you don’t have time for. This can become a self-fulfilling prophecy, generating resentment and an unhealthy work atmosphere.

The number one rule of hiring is that you should always hire someone smarter than you in the position you’re hiring for. When you hire experts, they can carry out the work in less time, thanks to their training and experience, and you can free yourself up to focus on those strategic tasks which no one else can do. When your employees are constantly interrupting

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Attribution 2.0 Generic (CC BY 2.0) Phil and Pam Gradwell

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s an insurance agent, you’re essentially a small businesses owner and small businesses owners generally don’t know what relaxing is. It’s a lot of late nights at the office and hours of tireless hard work. If your business has plateaued, however, your hard work may actually be to blame.

you or asking you to make decisions, it prevents you from focusing on more important core responsibilities and holds them back from potential growth in their own roles. Hiring smart, capable people and allowing them to thrive, will generate growth for your company.

Understandably, changing the habit of working too hard is easier said than done. Simply working less isn’t a viable solution. There’s a good chance that vital business processes grew around your habit of overwork.

If you suddenly reduce the amount of work you’re doing, you could cause the whole business to fall apart. An important first step to making a change is to reflect on what is causing you to work too hard in the first place.

Identifying the source could give you the insight you need to change your work habits.

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ANALYSIS - KROLL

FIGHTING FRAUD IN BUSINESS: WHO TAKES THE LEAD? Companies need specific strategies for detecting and preventing fraud The article below was originally published on Financial Director.

by Matthew Weitz

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bout the author: Matthew Weitz is an associate managing director in the Business Intelligence and Investigations practice of kroll based in the London office. Matthew is a qualified accountant with over 11 years of experience in fraud, corruption, money-laundering, and dispute resolution investigations, as well as compliance and anticorruption reviews across a wide range of sectors. He has worked closely with regulators and legal professionals, and has managed large and complex cross-border projects. His forensic accounting and anti-corruption experience spans over 30 countries. Prior to joining Kroll, Matthew worked in house at a large multinational corporation as a financial investigator, and at an international accountancy firm in China and the UK.

hanks to the fast-paced international nature of the modern business world, organisations face increasing pressure to identify efficiencies and streamline operations to protect their bottom line. Equally, the rapid spread of information means that companies have to be proactive in ensuring focus is given to reputation management, creating an ethical environment, and complying with the evolving regulatory landscape.

The fight against complacency in compliance and legal functions is more important than ever when it comes to managing these risks.

Several high-profile and largescale corporate fraud cases have made headlines in recent months, catalyzing debate as to who is responsible for preventing fraud, and why it hasn’t been detected. Is it the responsibility of statutory auditors, internal audit and compliance teams, or company boards to ensure prevention and detection mechanisms are able to deal with potential threats before it is too late, and identify whether large-scale fraud has taken place?

NOT AS SIMPLE AS IT SEEMS It is a widely-held belief that the responsibility for detecting fraud lies with the external (statutory) auditor or internal audit teams, shown in recent cases where auditors have faced parliamentary enquiries in the UK and negligence claims in civil lawsuits worldwide.

This belief is rooted in a common misunderstanding of the actual role of both internal and external auditors.

The focus of the external auditor is to interrogate the presentation of an organisation’s financial statements, to verify that they are aligned with the internal records and accounting data of that company, and to provide an opinion for external stakeholders that the accounts are presented without material error.

Alongside this, the primary focus of an internal audit is to assess the design and effectiveness of controls in a company, and to provide assurance to the management team that the controls in place are both designed properly and functioning effectively.

In both cases, it is important that a level of professional skepticism is applied by auditors. This can be challenging,

See Fighting Fraud Page 30

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www.chart-exchange.com

Be Cyber Resilient From cyber risk assessments and penetration testing to incident response and investigations, Kroll's global cyber experts are ready to help you and your insureds along the path to cyber resilience.

kroll.com/cyber

Bringing U.S. Entrepreneurship to the London Market The CHART/Wilson Elser strategic partnership combines the innovative underwriting philosophy of the world’s oldest insurance brand with the entrepreneurial mindset of U.S. agencies.

For close to 40 years, Wilson Elser has helped organizations to better navigate challenging markets and realize improved combined ratios. We provide London- and Europe-based insurers with ready access to more than 60 discrete legal services delivered by nearly 800 attorneys in 34 strategic locations throughout the United States.

Guided by a proprietary, systematic legal project management program, we help clients define strategies and achieve outcomes that align with agreed business requirements. We also implement dedicated Program Claim/Litigation Management services, creating value and driving efficiencies with respect to legal spend and indemnity.

Wilson Elser is especially proud of its strategic partnership with CHART Exchange and our shared commitment to strengthening relationships between cover holders and risk takers on either side of the Atlantic.

wilsonelser.com Š 2017 Wilson Elser. All rights reserved. 567-17

ANALYSIS - WILSON ELSER

FDA UPDATES ITS POSITION ON CBD UPON SIGNING OF FARM BILL

By Ian A. Stewart, Neil M. Willner

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ours after President Trump signed the 2018 Farm Bill into law, the FDA released a lengthy statement from its commissioner, Scott Gottlieb, M.D., updating its position on CBD products intended for human consumption.

Flexing its muscles, the FDA pointed out that the Farm Bill “explicitly preserved the agency’s current authority to regulate products containing cannabis or cannabisderived compounds under the Federal Food, Drug and Cosmetic Act.” The FDA voices its concern over the number of drug claims being made about CBD products that are not

approved by the FDA, cautioning the industry that all cannabis-derived products claiming to have a medical benefit must go through the FDA approval process for human use before being marketed.

Similarly, the FDA reminds the industry that under the FD&C Act, it is unlawful to “introduce food containing added CBD or THC into interstate commerce or to market CBD or THC product as dietary supplements, regardless of whether the substances are hemp-derived.”

human consumption, the FDA nevertheless signals a potential easing of restrictions on CBD, stating that it “will continue to take steps to make pathways for the lawful marketing of these products more efficient.” Recognizing the significant public interest and the potential opportunities that cannabis-derived compounds could offer, the FDA states that it is “committed to pursuing an efficient regulatory framework for allowing product developers that meet

Despite reaffirming its current stance against CBD products intended for

See FDA Position on CBD Page 42

Co-author Ian Stewart has defended complex litigation in state and federal courts for more than 20 years with a focus on product liability, complex general casualty, cannabis law, transportation and marine claims, data privacy and security, and intellectual property litigation. Ian is co-chair of the firm’s Cannabis Law practice and a member of the Information Governance Leadership Committee. Ian is committed to client communication and cost-effective litigation management. He is a proponent of efficient claim resolution and Legal Project Management. Ian goes out of his way to ensure that he understands his clients’ business and goals so that an agreed strategy can be identified and implemented at the outset of any litigated matter.

Co-author Neil Willner focuses his legal practice on medical malpractice, dental malpractice, nursing home liability and general liability centered on complex litigation. His clients include hospitals, medical practices, physicians, eleemosynary institutions, commercial businesses and summer camps. Neil has handled appeals in the New York Appellate Division, First and Second Departments. Neil focuses his legal practice on medical malpractice, dental malpractice, nursing home liability and general liability centered on complex litigation. Neil is a member of Wilson Elser’s Cannabis Law practice, advising medical professionals, growers, processors, insurers, distributors and vendors within the legalized cannabis industry as well as organizations outside the industry impacted by the rapidly evolving state and federal regulatory landscape.

www.chart-exchange.com

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NEWS

HR AUDITS: STARTING POINT

By Ronald Adler, President-CEO of Laurdan Associates

The purposes of HR management are to enhance the value of your organization’s human capital, help make your organization more competitive, help your organization achieve its strategic and business objectives, and help your organization reduce its exposure to human capital related risks.”

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he starting point in conducting an HR audit is an assessment of the organization’s strategic, tactical, operational issues. This audit activity should measure and report on eight key areas: 1) alignment with strategic and business objectives; 2) impact on human capital value; 3) impact on human capital risk exposure; 4) impact on financials; 5) impact on productivity; 6) commitment to compliance; 7) impact on customer satisfaction; and 8) impact on employee engagement. Linked to the responses in the HR management activities of your audit, this assessment allows management to monitor and assess the performance of HR management policies and practices; focuses management’s attention on critical areas to be improved; and prioritizes corrective measures.

KEY AREAS: Alignment: The starting point in developing the Strategic, Tactical, and Organizational Scorecard™ is an

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TABLE OF CONTENTS

analysis of the alignment between your organization’s strategic and business objectives and its written and unwritten policies and practices.

Your organization’s responses to these questions will help you assess the degree of alignment between organizational objectives and your strategic, tactical, and organizational policies and practices.

Value: The purposes of HR management are to enhance the value of your organization’s human capital, help make your organization more competitive, help your organization achieve its strategic and business objectives, and help your organization reduce its exposure to human capital related risks. Your strategic, tactical, and organizational policies and practices are important tools in that effort. This section of the Scorecard addresses the issue of the impact of your strategic, tactical, and organizational policies and practices on the added value of human capital and how the help achieve organizational competitiveness. Your organization’s responses will help you assess the impact of your strategic, tactical, and organizational policies www.chart-exchange.com

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bout the author: Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resources management consulting. Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran owned, human resources management consulting firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR, and unemployment insurance cost management. Mr. Adler has more than 45 years of HR consulting experience working with U.S. and international firms, small businesses and non-profits, insurance companies and brokers, and employer organizations. Mr. Adler is the developer the Employment-Labor Law Audit™ (ELLA®), the nation’s leading HR auditing and employment practices liability risk assessment tool — now in the tenth edition. g firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR, and unemployment insurance cost management. Mr. Adler has more than 45 years of HR consulting experience working with U.S. and international firms, small businesses and non-profits, insurance companies and brokers, and employer organizations.

and practices on enhancing the value added by your human capital.

Risk: Organizations face numerous human capital related risks — including the inability to recruit and retain needed talent, the failure to provide the necessary leadership of that talent, the failure to plan for succession, and legal-regulatory employment practices liabilities.

Your organization’s HR policies and practices can play an important role in mitigating those risks. Your organization’s responses to these questions will help you assess the impact of your strategic, tactical, and organizational policies and practices on your exposure to and management of human capital risks.

Financial: Key financial metrics include operating revenue, expenses, profits, labor costs, cash flow, and, for publicly-traded companies, earnings per share. Budgets and financial goals provide context in the development www.chart-exchange.com

of HR management policies and practices and set limits on the scope and financial implications of those policies. Your strategic, tactical, and organizational policies must be cognizant of your organization’s key financial metrics and help your organization achieve its financial goals. Your organization’s responses to these issues will help you assess the impact of your strategic and organizational policies and practices on your key financial metrics.

Productivity: Labor productivity, a key organizational metric, measures the output per hour worked. Your organization, its employees, and stockholders benefit from increased productivity in the form of increased organizational competitiveness, higher wages, and higher dividends.

A number of strategic, tactical, and organizational human resource management factors affect productivity. Your organization’s responses to these issues will help you TABLE OF CONTENTS

assess the impact of your strategic, tactical, and organizational policies and practices on labor productivity.

Compliance: Organizations — particularly publicly traded companies and those in regulated industries — increasingly must demonstrate their commitment to compliance. Demonstrating a commitment to compliance is of course more than just promulgating policy statements; organizations must walk the talk. Clearly publicized policy statements that receive visible and unequivocal support from the C-suite, are a critical first step. Your organization’s responses to these issues will help you assess the impact of your strategic, tactical, and organizational policies and practices on compliance obligations.

See HR Audits Page 25 APRIL 2019

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ANALYSIS - VANTAGE AGORA

MORTGAGE REGULATORY COMPLIANCE:

FINES ARE NOT “FINE!”

By Anoop Sam & Jeffrin Thomas

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alms sweating and hands shaking, you tear open the envelope only to be hit with the notice no one wants to see…. you’ve been fined.

You ask yourself, “How could we possibly be hit so hard again?”

You don’t have millions of dollars to shell out on compliance issues that could have been avoided.

Banks constantly receive fines from customer complaints due to failure to abide to regulatory compliance.”

Where are these issues stemming from? The answer is simple. Banks constantly receive fines from customer complaints due to failure to abide to regulatory compliance, which can lead to major fines and reputation damage (no one wants their name dragged through the dirt).

See Fines Are Not “Fine” Page 24

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bout the co-author: Anoop joined the Vantage Agora team in 2009. With 13 years of industry experience, Anoop excels at managing customers and growing business relationships with corporate and middle market clients across the globe. He is trained and certified in AINS, worked and reviewed over 11 million transactions, and managed over 45 customers, across 121 insurance carriers and multiple insurance software applications. Born and raised in Bangalore, India. Anoop received his bachelor of arts degree in English and Social Science from Bangalore University, Karnataka. After college Anoop worked at Aviva before completing his AINS 21, 22 and 23 in general insurance in the States. Anoop currently lives in Bangalore with his wife Kavita and daughter Aaria.

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bout the co-author: Jeffrin Thomas Thomas is Assistant Quality Manager focused on US Regulatory Compliance at Vantage Agora. A Six Sigma Green& Black Belt certified professional with over 10 years of experience in Quality Assurance Control, Performance Management, and Client Relationship Management. He has proven expertise in achieving quality assurance operational objectives by contributing information and analysis to strategic plans and reviews. He is experienced in determining, negotiating and implementing in-house quality procedures, standards and/or specifications and has hands on experience in conducting suitable training programs to enhance team members operational efficiency.”

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APRIL 2019

TABLE OF CONTENTS

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23

ANALYSIS - VANTAGE AGORA Continued From Page 24

MORTGAGE REGULATORY COMPLAINCE

FINES ARE NOT “FINE!” The scary part is, most banks aren’t even aware that these complaints are piling up because many customer complaints are going straight to the CFPB (Consumer Financial Protection Bureau). While some customer complaints are legitimate, others are not. Adhering to all the compliance

non-compliance-associated fines, penalties and the dreaded reputation harm.

regulations can pose a challenge when it comes to mortgages, and banks don’t always have the resources to review all the cases before they reach the government. It can be a time-consuming process, but it is a necessary one if you want to remain in good standing with your customers and the law.

whether violations are legitimate or not. We help you to be proactive versus reactive by alerting you before the customer can file a report with the CFPB and fines accumulate.

That’s why no bank should be “fine” with fines. In order to succeed, organizations need to act fast and tackle customer complaints before the government presents them with a large fine! At Vantage Agora, we don’t want to see you go down for fines that could be avoided, which is why we have devised a strategy to act as your own regulatory compliance audit firm.

We specialize in ensuring you avoid

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APRIL 2019

Don’t let issues go all the way to the CFPB; We will do all the messy work for you. Vantage Agora works to retrieve info from the CFPB and determine

We work to break down complaints by type (loan mortgage, collection, loan service, foreclosure, payments, and escrow), identify inaccuracies and provide our clients with superior recommendations. We also understand that no one likes to look at a long spreadsheet of numbers, and that is why we use our dynamic Business Operating System (BOS) to deliver compelling visuals and actionable data. This allows you to view trends in a way that makes sense and provides added value to clients by supporting informed decision making.

TABLE OF CONTENTS

Fines are not fine and we won’t let you watch another precious dollar slip away!”

Vantage Agora is here for you.

Fines are not fine, and we won’t let you watch another precious dollar slip away. We work hard to be your source of truth and regulatory compliance audit firm, providing you with the data and resources necessary to remain compliant and keep your money where you need it!

For more information about Vantage Agora’s Mortgage Regulatory Compliance services, contact Jeffrin Thomas: jeffrin@ vantageagora.com or Anoop Sam: anoop@vantageagora.com

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NEWS Continued From Page 9

3 QUESTIONS AGENTS SHOULD ASK ABOUT STANDING OUT FROM THE COMPETITION WITH NICHE MARKETING HOW DO YOU MARKET A NICHE? Niche marketing is all about very focused expertise. Sometimes agents are niche “subject matter” experts, but they take their knowledge for granted. It is part of their everyday interaction with clients. When they are interviewed to discuss their insights, they are often surprised at the detailed inside information they have about specific industry practices and pitfalls. They tend to take their expertise for granted because they deal with industry specific insurance issues every day. But, sharing that www.chart-exchange.com

knowledge positions you as an expert and a resource for clients.

Most insurance agents aren’t writers, they are talkers. Talking, listening, and responding to people is how you do business. But having a professional writer interview you is an easy way to provide your inside take on your niche industry. That conversation can be transformed into website content, articles, presentations, sell sheets, email blasts, and more.

That’s the “bait” that attracts clients in your niche. Your expertise, niche sales materials, and presentation combined with your insight is how you close the deal.

Continued From Page 21

HR AUDITS: STARTING POINT Customer Satisfaction: Customer satisfaction can be defined as providing a product or service that satisfies or exceeds the customer’s expectations. For many organizations, customer satisfaction is more than a key performance indicator (KPI); it is the single most important factor that assures continued competitiveness and growth. An organization’s TABLE OF CONTENTS

human capital is a critical component in the customer satisfaction equation as customers increasingly measure satisfaction in terms of not only price and quality, but also the level of customer service. Your strategic, tactical, and organizational policies and practices can play an important role in enhancing customer satisfaction. Your organization’s responses to these issues will help you assess the impact of your strategic, tactical, and organizational policies and practices on customer satisfaction.

Employee Engagement: Research shows a strong correlation between employee engagement and organizational performance. Employee engagement can be defined as the willingness of employees to exert discretionary effort to help the organization accomplish a task. Employee engagement is a measurement of the degree to which employees are willing to take the initiative to help the organization achieve its business objectives, help the organization seize opportunities, and help the organization solve problems.

Employee engagement is a measure of the degree to which employees equate their individual success with the success of their team, department, and your organization. Your organization’s strategic, tactical, and organizational policies and practices should contribute to positive employee engagement.

Your organization’s responses to these issues will help you assess the impact of your strategic, tactical, and organizational policies and practices on employee engagement.

APRIL 2019

25

ANALYSIS - FORTEGRA

TINDER’S INFLUENCE ON THE FUTURE OF CLAIMS NEGOTIATION, ALWAYS SWIPE RIGHT

By Howard Fishbein, SVP, Specialty Claims at Fortegra

I

missed the whole on-line dating experience and find the entire process confusing and impersonal to a degree. I’m a communicator; I know how to feel people out. My wife will attest, first hand, that in the instance that my not so subtle personality rubs someone the wrong way, I eventually grow on people over time, like a fungus. While some might say my personality is an acquired taste, I prefer to think of it as a wellhoned skill that has made me a successful negotiator. But, I grew up in an age of calling the parents of a girl I liked and having to ask them to put her on the phone.

I find myself wondering how this next generation of internet-based communicators will find success in a competitive insurance industry.

Will they be able to develop the skills needed to successfully protect the capital of an insurance carrier when their preferred method of communication is Snapchat, Instagram and texting? I believe the answer is yes if we remind future adjusters to Always S wipe Right.

If Tinder has taught the next generation of adjusters anything, it’s that two factors are critical in effectively performing their job: 1) you don’t know unless you ask (the more you swipe right, the more likely that you will find a match) and 2) in a

market saturated with competition, creativity is the key to distinguishing yourself from the rest of the herd.

While not an exhaustive list by any means, these concepts can be applied to claims handling in the following ways: a. Pride in our Work Product: This concept speaks for itself; if you would not post your worst photo on-line, why would you not show similar attention to the work you are releasing into the market?

You need to treat every dollar as if it were coming from your own pocket. There are no participation See Tinder’s Influence Page 34

A

bout the author: Howard Fishbein serves as Senior Vice President, Specialty Claims at Fortegra Financial, a Jacksonville, Florida based carrier with over $1 Billion in annual sales and an A.M. Best Rating of A-. Howard has almost twenty years of insurance claims experience combined between his private practice and inhouse experience. Howard earned his B.S. in Accounting at The Pennsylvania State University and his J.D. at St. John’s School of Law. He is a licensed attorney passing the bar in both New York and New Jersey.

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APRIL 2019

TABLE OF CONTENTS

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APRIL 2019

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SPECIAL REPORT - MCGOWAN PROGRAMS

ACTIVE SHOOTER/ WORKPLACE VIOLENCE COVER Paul Marshall, of McGowan Programs, examines the insurance forms available in the case of mass shootings and other forms of workplace. for critical services required in the aftermath of an incident.

T

he costs of mass shootings start piling up from the minute the fi rst 911 call goes out, and they endure for weeks, months, and years after the attack, long after media coverage subsides. A study of the 2007 Virginia Tech University shooting, for instance, estimated the event cost the public $48.2m, with $38.8m borne by the university and the taxpayers who support it.

Unfortunately, active shooter incidents appear to have become a common feature of modern society in America.

Several recent events emphasise the reality that attacks such as what occurred at Virginia Tech can happen at any time, at any organisation, making the case for organisations to take preparation seriously. www.chart-exchange.com

For all the data, studies and effort devoted to understanding mass shootings and workplace violence, it is extremely difficult to predict – and thus prevent – these incidents.

At the same time, organisations in which these tragedies occur must address unexpected costs in victim medical/funeral expenses, trauma counselling, crisis management, litigation, property renovations, business income loss and extra expenses.

A few select insurance providers now offer coverage to address the unique needs arising from these types of lone wolf mass shootings and other workplace violence incidents. These policies can have various names, such as active shooter, deadly weapon, and workplace violence coverage, and will be referred to herein as “active shooter policies”. Most policies are not limited to attacks with fi rearms and cover a wide range of attacks with various weapons, including knifes, explosives, vehicles, and even fl ying drones.

These new policies can plug gaps in existing coverages and provide TABLE OF CONTENTS

As a general principle, acquiring coverage for specifi c kinds of incidents – so-called “named perils” – is an appropriate response to these kinds of uncertainties. The insurance industry now addresses these uncertainties via named-peril policies that not only help defray the costs arising from active shooter incidents, but also allow the institution to readily and without hesitation provide support – fi nancial and otherwise – to those who are affected.

See Active Shooter Page 36 APRIL 2019

29

ANALYSIS - KROLL Continued From Page 16

FIGHTING FRAUD IN BUSINESS: WHO TAKES THE LEAD? as the detailed work of an external audit is often carried out by junior members of staff without the experience to identify areas which, to a more experienced auditor or finance professional, would indicate a red flag. As a result, fraudulent activity can go undetected. Equally, as external auditors only usually test the most material balances, they may not identify smaller instances of fraud if there is no evidence of material misstatement.

In cases where the perpetrators of fraud are more senior management, the auditor may be intentionally deceived through the provision of misleading or manipulated information. There is an argument that it is beyond the responsibility of the auditor to challenge the veracity of the information supplied beyond carrying out standard checks, for example testing the completeness of the data. If a company or employee deliberately attempts to deceive auditors, this may not be detected, given the deep and broad

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APRIL 2019

understanding of the business that senior management are likely to have.

BUILDING AN ANTI-FRAUD ETHOS Whilst few would dispute that auditors should escalate and fully investigate any suspicions of fraud or obvious ‘red flags’, the ultimate responsibility for preventing and detecting fraud rests with an organisation’s management and staff. The only sure-fire way a company can be certain it is properly addressing fraud risks is to put fraud risk assessment and response on the board’s agenda. In the modern era of heightened public awareness and instant news, complacency is not a luxury companies can afford. Instead, they must take a proactive approach to mitigating fraud risk.

Certain industries have taken the lead in this, defining and framing best practice. Notably, in the financial services sector, the FCA has outlined the importance of fostering a strong organisational culture and being proactive in managing the ethical aspect of compliance risk. The introduction of the Senior Managers and Certification Regime (SM&CR), which aims to promote a culture where senior executives take responsibility for identifying and preventing risks, is one good example of this.

Too often, compliance is treated as a ‘tick-box’ exercise – following business protocols, checking against lists of criteria and assuming that the job is complete. But this approach TABLE OF CONTENTS

does not go far enough. Companies must not only consider the type of transactions or records, but also test their substance on an ongoing basis, querying transactions and underlying supporting documentation to be comfortable that they make sense.

To tackle these issues properly, senior management and boards have to implement company-wide processes and procedures which proactively assess fraud-specific risks. A proactive approach to detecting fraud requires deploying several complementary tools, one of which is data analytics.

By continually analysing and monitoring internal data sets, companies can generate a clearer picture of their relationships with third parties and identify patterns in fund flows, as well as any pattern changes which could pose a potential fraud risk. The most effective fraud prevention programs will also consider mechanisms that could be put in place to bypass structured controls and allow fraudulent activity to occur. Internal audit departments can play an important role here, and the development of their function to take on greater involvement should be encouraged.

Furthermore, organisations are likely to be better at identifying suspicious activity if they consider where information could be manipulated or disguised, and how company assets might be embezzled, effectively stopping fraud before it causes irreparable damage.

See Fighting Fraud Page 35 www.chart-exchange.com

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888-235-3525 www.nsminc.com

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www.chart-exchange.com

ANALYSIS - VALUEMOMENTUM

5 DIGITAL PLATFORM CAPABILITIES EVERY INSURER SHOULD HAVE Philip Zachariah, VP, Digital & Cloud Solutions, ValueMomentum

Our industry is now acknowledging the inevitability of digital business ecosystems and the need for digital transformations in order to compete. However, as many insurers are still consumed with their core system modernizations, most carriers are just beginning to grapple with pursuing a digital transformation.

To start, it’s important to understand the definition and purpose of a digital platform.

According research and advisory www.chart-exchange.com

CC0 Public Domain Artist Link

T

here’s no denying the year of the digital platform has arrived in insurance.

As McKinsey puts it, society’s growing reliance on digital technologies is reshaping customer expectations and redefining boundaries across industries, a trend that’s equally affecting insurance. As traditional industry borders recede, collections of digital business platforms are forming ecosystems to become the new foundation around which markets are organizing. This makes digital platforms the new table stakes.

firm Gartner, a digital platform is a set of technology solutions that are combined in a businessdriven manner to enable digital interactions between communities of partners, providers and customers. Critical to this model is infusing a digital platform with capabilities that allow members to connect, reconnect and evolve an ecosystem rapidly as marketplace needs change.

PROVEN FRAMEWORK DELIVERS SUCCESS When we partner with clients to create a digital platform, the first step is helping develop a transformation strategy using our proven digital framework. This TABLE OF CONTENTS

framework ensures you identify your business strategy, analyze your existing IT environment to determine what’s necessary for achieving your business strategy and then developing a plan to evolve your IT environment accordingly.

A key outcome of our framework is infusing your digital platform with five essential capabilities for success. These five essential capabilities are: rapid app development, fast and effective integration, cloud enablement, IT service management and robust data & analytics.

See Active Shooter Page 40 APRIL 2019

33

ANALYSIS - FORTEGRA Continued From Page 26

trophies in claims handling. You are either an asset to your organization or performing a disservice to your employer. A claimant’s attorney will never lower their demand without you asking and it’s your job to ask.

Before you send something out of your email box ask yourself if you would be proud of your work if it was posted online; b. Well Thought Out and Prepared Arguments: As adjusters, we cannot simply rely on a single bullet rifle when our pposition is armed with a six shooter. The easiest way to obtain a below average result is to not think of various arguments. Our opposition consists of former judges (mediators) and attorneys. These individuals are educated on how to argue facts and law effectively. Their skills can be neutralized by thinking about alternative arguments and developing responses to questions that are repetitively heard by adjusters.

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APRIL 2019

Nick Youngson CC BY-SA 3.0 Alpha Stock Images

TINDER’S INFLUENCE ON THE FUTURE OF CLAIMS During my earliest years I would ask my supervisor why we should accept the oft-heard argument that carriers should consider the ongoing cost of defense when determining settlement value.

The quick answer was because they are a practical consideration. I thought about how to address that point and at the next mediation when faced with the same concept responded that our defense counsel was working for and had already been paid a flat fee. Being prepared with an effective rebuttal to common arguments allowed me to minimize its impact and obtain a more favorable result; c. Effective use of Defense Counsel: Tinder is the modernday equivalent of the single guy’s wingman. A great wingman could go up to anyone in the room, strike up a conversation and talk you up before you came over. How can we use defense counsel in this way? While I TABLE OF CONTENTS

firmly stand behind the notion that adjusters should manage counsel and not the reverse, we can maximize their skills by instructing them to call claimants counsel before we do in order to manage expectations. This provides a degree of clarity to our opposition and gives them time to either manage their own client and/ or reassess their view of damages.

It also gives us information about how flexible our opposition may be given their response to our defense counsel. If claimant’s counsel still wants to speak with us after the initial call, there is some indicia of recognition that our informal range was within striking distance of a settlement, or at a minimum, an indication of continued interest in continued dialogue. Alternatively, a clear rejection will allow you to develop a new strategy for resolution; d. Knowing How to Present an Offer: There are many ways to www.chart-exchange.com

present an offer in a creative way that triggers thought by your opposition and could give you an edge.

An adjuster is only limited by their creativity and imagination when it comes to making an offer. Knowing how to make an offer comes by first listening to the opposition and hearing the needs of their client.

Some creative offers could include: 1. Unusual amounts: Don’t offer $5,000 but instead trigger thought by offering $4,872.

Attorneys have an ethical responsibility to notify their clients of all offers. Let their clients ponder the unusual offer as well.

2. Alternative settlement offers: Everything has a cash value.

You can offer vacations, new cars or to cater a family reunion.

An offer that meets a need of your claimant is usually more attractive than its cash equivalent yet could fall within your target settlement value range.

The ultimate goal of any Tinder user varies depending on ones needs and wants. Yet the approach to accomplishing your goal does not vary the effort required or strategy necessary to accomplish this goal.

Negotiation remains one of the cornerstones of a capable adjuster. In order to be a successful negotiator, the next generation will need to develop their creativity and gumption in order to effectively communicate with opposition and protect company capital. www.chart-exchange.com

Continued From Page 30

FIGHTING FRAUD IN BUSINESS: WHO TAKES THE LEAD? Although it is essential that organisations take these measures, they will only be as effective as the weakest link in any system – usually, their employees. Therefore, boards must create and promote an environment that transcends mere compliance, empowering employees across the whole business to ask questions and get answers that add up.

Fraud is most common in the mid- to lower-level tiers of business operations, and as such, those on the ground must be just as aware of both the impact of fraud and the role they play in helping to detect it.

Clearly, the tools and tactics are available for companies to tackle fraud risks, but the key to their successful implementation is the combination of a deep-rooted culture of doing the right thing, with specific strategies for detecting and preventing fraud. It is vital that this is done proactively, and as part of a holistic and evolving process which can be moulded to face the challenges thrown up by the modern business environment.

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CHART DEFENDER COVERHOLDER E&O AVAILABLE NOW!

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APRIL 2019

35

SPECIAL REPORT - MCGOWAN PROGRAMS Continued From Page 29

ACTIVE SHOOTER/ WORKPLACE VIOLENCE COVER IMPORTANT DETAILS IN ACTIVE SHOOTER COVERAGE Organisations confront a host of legal, regulatory and tort liability bligations. For instance: the Occupational Safety and Health Administration (OSHA), the federal agency regulating workplace safety, requires all employers to provide a safe workplace and to account for common risks, including shootings and workplace violence.

Organisations also need coverage against claims of negligence, including negligent infl iction of emotional distress and negligent hiring and supervision.

Insurance has long played a role in confronting all types of risks. The latest generation of active shooter/ workplace violence policies refl ect the evolution of organisations and insurers response to new threats.

General insurance policies often contain limitations that expose

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APRIL 2019

organisations to the costs of an active shooter incident. For instance, a general liability policy typically does not respond to potential threats or with post-event, immediate “day one” coverages for crisis management, public relations, and critical victim benefi ts. In addition, standard policies may decline to cover business income loss or property damage, renovations, or removal and rebuilds due to emotional duress caused by these types of attacks.

Active shooter policies, by contrast, have recently evolved to cover a terror attack with almost any type of weapon, include coverage of incidents of threats, and provide coverage while individuals travel or study abroad. Home insurers may require risk assessments and active shooter action plan seminars, while others offer discount incentives on premiums for organisations TABLE OF CONTENTS

that participate in these additional trainings.

There are several issues to look for in an active shooter insurance policy. One of the first questions asked after these tragic events is, “Who will take care of the victims?”

Your insurance programme needs to be able to answer that question by paying for immediate victim expenses, including counselling, medical, rehabilitation, lost wages, funeral/burial and death benefits.

To prepare for lawsuits following a violent event, your programme needs to have third-party liability as primary coverage, including legal defence and settlements otherwise known as indemnity. Some policies are excess and only cover limited extra expenses with no indemnity.

Ensure that your policies provide as much protection as possible. www.chart-exchange.com

As discussed earlier, these events can cause business income interruption and extra expenses, including property renovations.

These should be included as a part of your insurance programme to help the organisation emerge from this crisis event and do its best to resume normal operations and services as quickly as possible.

provide coverage only if the incident is labelled as an “act of terrorism”. This requires a certification from the US Treasury Department, among other requirements. The last certified act of terrorism in the US was the 9/11 attacks. For these reasons, ensure that you are not misled into thinking terrorism coverage would be helpful in an active shooter scenario.

• Employees: Coverage may not include employees of the insured and only include guests or visitors. Due to the nature of these events, insured persons should include employees, volunteers, students, guests, patrons and so on.

Casualty thresholds: Some policies have a body deductible and coverages apply only after a certain number of people (usually three or four) have been injured or killed. Most active shooter/workplace violence events involve less than three individuals; ensure that your policy would cover these incidents.

Vehicles: This type of attack is becoming more common.

Certain policies might rule out damage caused by a vehicle, such as an incident involving a vehicle ramming into a crowd of people.

Weapons: Coverage could be

Active shooter and workplace violence insurance coverages help organisations defray a broad spectrum of costs that happen after an incident.”

The time an organisation needs the most assistance and support from their insurance company is after an incident occurs. Ensure that your active shooter coverage provides access to a crisis management team who can manage the news media, public relations efforts, and increased security and help coordinate services with survivors and families of those affected.

POLICY FORM REVIEW/ EXCLUSIONS TO EXAMINE

•

•

A review of current active shooter/ workplace violence policy forms show some items that could prove costly in the aftermath of an incident: •

Terrorism: Some policies may www.chart-exchange.com

•

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confined to firearms or bladed weapons and might not cover improvised explosives or ordinary items used for violent purposes, which, as the Boston Marathon bombing showed, can be just as harmful.

With the evolution of these coverage forms they need to be reviewed very carefully. There are more robust policies on the market that cover all these risk scenarios and provide the peace of mind and security that proper insurance protection is in place.

AFTERMATH: CRISIS MANAGEMENT AND POSTEVENT COVERAGE Active shooter and workplace violence insurance coverages help organisations defray a broad spectrum of costs that happen after an incident. These expenses typically include: •

•

Crisis communications: Policies may help the insured work with a crisis communication consultant to help with issuing statements to the public, arranging interviews with local media, connecting with family members of the victims, and setting up memorial funds.

Extra staffing and security: After an active shooter incident, organisations typically hire more security personnel and pay to harden locks, control access, and

See Active Shooter Page 42 APRIL 2019

37

FORESTRY WORLDWIDE FORESTRY (RE)INSURANCE FACILITY Pardus was established in 2013 by Keith Thompson, formally CEO of Advent capital Holdings Ltd and Darren Stockman Active Underwriter of Syndicate 780 and Director of Advent Underwriting Ltd. Pardus are an independent Managing General Underwriter, a Lloyd’s approved Coverholder, and an appointed representative of Capita Commercial Insurances Limited.

Cover

Maximum line of USD 8.5M any one risk, any one location. Capacity provided by Lloyd’s of London and “A-” rated company paper. Perils covered mainly Fire and Windstorm, but we can offer additional coverage for hail, ice, snow, frost.

We cannot cover Pest and Disease, although we can offer cover under a small sublimit for Pest and Disease treatment costs.

Sublimits available for fire-fighting costs, aerial photography, debris removal, claims preparation costs etc.

Frost

Hail

Snow & Ice Storm

Flood

PERILS COVERED Rainfall Deficiency

Fire

Malicious Damage

Windstorm

Business Interruption is offered when fruiting trees are destroyed by covered physical damage perils, leading to a loss of yield while the new trees develop •

We have specialist Pardus facilities in place to cover Public Liability (in Europe) and associated forestry Plant and Machinery risks

OUR TAILORED PRODUCTS

Full Value and Value at Risk

Full Value works in the traditional way with insurer retaining any salvageable value from the insured property.

Value at Risk leaves an agreed salvage (based on salvage scales developed by Pardus using age and species data) in the ownership of the client.

Pardus then only insure the non-salvage element meaning the final rate will be applied to a fraction of the TSI generating a lower overall cost to the client.

Target business: •

We are keen to see any enquiry for standing timber commercial planation forestry

• •

Information requirements for quote: •

Perils to be insured against

•

Schedule of forest locations by values, age, species

Forestry risks with accreditation from the Forestry Stewardship

Locational information needs to be provided in either

Council (or similar)

shape file format (.kmz) or the latitude/longitude

Forest Owners comprise:

coordinates of the centre point of each location

-

Individual investors

•

5-10-year ground-up loss experience by peril

-

Commercial Plantation Companies

•

Desired policy structure:

-

Individual Forest Owners

-

Timberland and Investment Management Organisations

-

(TIMO’s)

•

Additional features: -

-

Forest Management Organisations (FMO’s)

-

Real Estate Investment Trusts (REIT’s)

-

Banks loans made to forest owners or fruit tree owners

-

Forest Owner Associations

Deductibles, limit etc Firefighting costs, claims preparation, aerial photography, plantation infrastructure

To download our full forestry questionnaire, please visit our website https://pardusunderwriting.com/products/forestry/

Exclusions

Property

Buildings

Terrorism

Pest and Disease

Drought

Crop

Fruits, Nuts etc

Phil Cottle - Senior Agricultural Underwriter Direct +44 (0)203 735 1608 Mobile +44 (0)7769 895048 phil.cottle@pardusunderwriting.com Dan Longden Cert CII - Underwriting Assistant

Direct +44 (0)203 735 1610 Mobile +44 (0)7756 961500 daniel.longden@pardusunderwriting.com

Pardus Underwriting Ltd. 1st Floor, 3 Lloyd’s Avenue, London, EC3N 3DS www.pardusunderwriting.com

“We have access to a worldwide forestry binding authority covering the physical damage to commercial forestry. There is a maximum line of USD 8,500,000 any one risk, any one location and the covered perils can be found on this flyer. This is written 100% Lloyd’s/company market and Prospect are the Insurance broker”

ANALYSIS - VALUEMOMENTUM Continued From Page 33

5 DIGITAL PLATFORM CAPABILITIES EVERY INSURER SHOULD HAVE

integration-oriented architectures are fundamental to fast and effective integration. Such capabilities also enable you to improve your internal integration between products, services and operations to become more nimble and responsive.

4. IT SERVICE MANAGEMENT Internal user experiences are just as important to competitiveness and profitability as customer experiences.

By automating service management, you can streamline internal processes and provide consumer-like experiences for your employees. Incorporating IT Service Management into your digital platform can significantly improve employee engagement, help attract top talent and positively boost retention.

5. ROBUST DATA & ANALYTICS

Let’s take a closer look at each essential capability.

1. RAPID APP DEVELOPMENT Unlike traditional long development and QA cycles, rapid app development favors quickly producing working software, gaining immediate feedback and then iterating rapidly. The objective is creating immersive and natural engagement experiences, on whatever digital channels a customer chooses, that can be evolved swiftly as needs and expectations change. Adopting rapid app development technologies helps you pursue new market opportunities while simultaneously providing the exceptional experiences required for winning new customers.

2. FAST AND EFFECTIVE INTEGRATION Similar to rapid app development, successful platforms enable quickly and effectively integrating with partners to leverage new market opportunities and distribution channels. Technologies such as open APIs, microservices and

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Philip is Co-Executive of the Digital & Cloud Services business at ValueMomentum.

He specializes in digital transformation, cloud migration and architecture, application development, and integration strategy. He has extensive technology experience, with over ten years of experience in the insurance industry.

3. CLOUD ENABLEMENT Moving infrastructure and operations to the cloud enables you to optimize your IT environment and leverage automation, which provides flexibility for scaling your business and improving profitability. A welldesigned and implemented cloud environment supplies insurers the right tools, storage and network to develop and deploy applications according to business needs.

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Data is the foundation for achieving innovation with digital initiatives and it’s abundantly available. The trick is having the right data strategy for harnessing and using data, in order to provide you with the ability to make informed decisions, drive smart actions and bring transformational value to your business. Robust data & analytics enables improving products and services, gaining deeper insights into customer needs, developing new revenue streams and updating business models.

From our deep industry experience, we’ve seen how these five capabilities can make or break the success of an insurer’s digital platform. That’s why establishing strength in these five capabilities will help ensure you’re ready to win in a rapidly evolving, ecosystem-driven marketplace. Learn how we can help you develop these five capabilities through our Digital & Cloud and Data Leverage services.

To find out more about ValueMomentum, click here.

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2018 IN REVIEW $8.1 billion

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

$ $

total in-force premium

$690 million

9.3%

total in-force premium growth

growth in total in-force premium

465

independent strategic members signed

36

1 983

13%

4,487

signed of independent agents in U.S.

national strategic partner companies

2 0 19

new agencies created

28

48

strategic master agencies

The Total Solution for the Independent Agent The Proven Distribution System for Strategic Partner Companies

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ANALYSIS - WILSON ELSER Continued From Page 19

Continued From Page 37

FDA UPDATES ITS POSITION ON CBD UPON SIGNING OF FARM BILL

ACTIVE SHOOTER/ WORKPLACE VIOLENCE COVER •

the requirements under our authorities to lawfully market these types of products.” To this end, the FDA will hold a public meeting in the “near future” for industry members to share their experiences and challenges with CBD-based products.

This new statement by the FDA signals recognition by the agency of the public’s intense interest in CBDinfused products. The CBD market continues to grow despite the FDA’s prohibition. Until it is approved by the FDA, however, using CBD as an ingredient in foods and supplements results in risks that include regulatory enforcement and exposure to liability in civil lawsuits.

For further information on cannabis and hemp law and policy, please contact the authors or other members of Wilson Elser’s Cannabis Law practice.

Additional information can be found at www.wilsonelser.com/

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•

•

•

set up surveillance systems.

Funeral costs: Paying for these costs earns a measure of goodwill with traumatized survivors and family members, not to mention the general public. This coverage can act like a built-in fund so that surviving families do not need to set up personal crowd-funding accounts to secure financial resources for funerals, hence allowing the organisations or institution to lessen the already heavy burden on those affected.

Death and injury benefits: Active shooter policies usually offer benefits for death, dismemberment, partial/ total disability, and other injuries.

Counselling sessions: Bringing in trauma counselling experts for all affected individuals, including families, helps the campus get back on the road to recovery.

Litigation: In such high stress and trauma situations, many TABLE OF CONTENTS

survivors and family members will seek compensation for damages. Even if the entity is not negligent and enacted various prevention and training policies before the incident, it must pay the cost of defending itself for potential negligence in court cases that can drag on for years.

Many of these costs represent critical responses to a violent incident. Active shooter/workplace violence policies acknowledge this reality and provide a measure of coverage. General liability policies, by contrast, often do not respond immediately following these events, waiting on formal legal claims to be processed. This leaves organisation leaders in a tough ethical, financial and reputational situation if they are not prepared to cover the costs associated with a tragedy occurring at their organisations.

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LLOYD’S OF LONDON

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