Health Care Property & Casualty Profile - November / December 2017

In this November / December Health Care Profile, we will dive into digital innovation within hospitals, the financial benefit of easing doctor burnout, and how the federal government threaten three Massachusetts psychiatric hospitals. Read more below.


HOSPITALS WANT DIGITAL INNOVATION

A survey conducted by the American Hospital Association (AHA) and health innovation company AVIA found that 85 percent of health care leaders realize that digital innovation is a key factor in the long-term success of their health care organizations.

Survey respondents included executives and innovation officers from 317 health systems in 48 states. When asked to define innovation, almost 75 percent of survey respondents said that it involves collaborating with innovative organizations, and 42 percent said that they believe innovation includes testing and scaling externally developed digital solutions.

Christina Jack, the AHA’s senior director of entrepreneur strategy and innovation, stated that digital innovation could be hampered by the fact that it is dependent upon the competencies of a chief information officer. And, as a result, it isn’t woven into an organization’s operations.

Nonetheless, the health care leaders who participated in the survey were hopeful about the future and stated that, if done correctly, digital innovations could improve the patient and workplace experience for both physicians and staff, as well as improve safety and decrease costs.

According to the survey, areas where hospitals have already invested in digital innovation include operational efficiencies, primary care delivery and utilization, patient access and care transitions.

FEDS THREATEN 3 PSYCHIATRIC HOSPITALS

The federal government threatened ceasing Medicare payments to three Massachusetts psychiatric hospitals after safety lapses caused two mentally ill patients to forgo critical medication. One patient had a seizure and suffered a traumatic head injury as a result.

 

According to a letter dated Sept. 8 from the Centers for Medicare and Medicaid Services to the CEO of all three hospitals, conditions discovered on Aug. 28, 29 and 30 posed an immediate jeopardy to the health and safety of patients, limiting the hospitals’ capacity to render adequate care.

FINANCIAL BENEFIT OF EASING DOCTOR BURNOUT

According to a recent study published in JAMA’s Internal Medicine, addressing doctor burnout could save hospitals over $1 million per year.

The study looked at the cost of physician turnover as a whole and then used evidence to determine how many physicians leave their jobs because of burnout. It found that for an organization that employs 450 doctors, doctors who leave due to burnout cost the organization $2.5 million per year. If the same organization spent $1 million per year to lower the risk of burnout by 20 percent, it could save about $1.25 million each year.

Researchers said that the ways to decrease burnout involve understanding what causes it, such as a lack of work-life balance, heavy workloads, and a lack of flexibility and control.


5 Common Types of Construction Fraud to Avoid

Common Types of Construction Fraud

Fraud of all kinds is prevalent across every type of construction project. While cases of construction companies defrauding their clients are the most reported, it is the companies themselves that often lose money to fraud perpetrated by employees, contractors and partners.

To protect themselves, businesses should be aware of the following most common fraud schemes:

  1. Nonpayment of subcontractors and material suppliers done by delaying or falsifying lien waivers, or using project cash receipts to pay bills for other projects.
  2. Billing for unperformed work—often by exaggerating the units of production accomplished or the labour and equipment actually used.
  3. Subcontractor collusion, such as bid rigging and price fixing. It is important to prequalify and pre-approve contractors, provide the full scope of work to bid on, and then select the best-priced, most qualified and responsive subcontractor.
  4. Substituting or removing material, which can include doing things like installing low-grade materials that would require future repairs.
  5. Stealing tools or equipment from a worksite, often done by billing for equipment or tools for the job site that are then used for other subcontractor projects or personal use, or billing for unnecessary tools.

For further protection, it’s a good idea to implement a compliance and ethics program, set up an anonymous reporting system, properly define project scopes and ensure segregation of duties.

Prepare for OSHA’s First Injury Tracking Deadline

OSHA’s new Injury Tracking Application (ITA) was launched on Aug. 1, 2017, allowing establishments to start submitting their 2016 Form 300A. OSHA’s proposed compliance deadline is Dec. 1, 2017, leaving employers limited time to prepare.

The following establishments are subject to the rule and its subsequent reporting requirements:

  • Establishments with 250 or more employees
  • Establishments with 20-249 employees that operate in identified high-risk industries

In order to meet the Dec. 1 deadline, employers should familiarize themselves with the ITA. Employers in states that operate OSHA-approved state plans should consult with their OSHA state-plan administrator for any additional electronic reporting instructions.


Cyber Risks & Liabilities - November 2017

We live in a world centralized around cyber activity – so shouldn’t employers protect themselves from cyber risks? The answer: yes. This article will help employers be aware of the damage a breach in cyber security can cause and help them seek the best cyber insurance.


5 Cyber Risk Questions Every Board Should Ask

When a data breach or other cyber event occurs, the damages can be significant, often resulting in lawsuits, fines and serious financial losses. In order for organizations to truly protect themselves from cyber risks, corporate boards must play an active role. Not only does involvement from leadership improve cyber security, it can also reduce liability for board members.

To help oversee their organization’s cyber risk management, boards should ask the following questions:

  1. Does the organization utilize technology to prevent data breaches? Boards should ensure that the management team reviews company technology at least annually, ensuring that cyber security tools are current and effective.
  2. Does the organization have a comprehensive cyber security program that includes specific policies and procedures? Boards should ensure that cyber security programs align with industry standards and are audited on a regular basis to ensure effectiveness and internal compliance.
  3. Has the management team provided adequate employee training to ensure sensitive data is handled correctly? Boards can help oversee the process of making training programs that foster cyber awareness.
  4. Has management taken appropriate steps to reduce cyber risks when working with third parties? Boards should work with the company’s management team to create a third-party agreement that identifies how the vendor will protect sensitive data, whether the vendor will subcontract services and how it will inform the organization of compromised data.
  5. Has the organization conducted a thorough risk assessment and considered purchasing cyber liability insurance? Boards, alongside the company’s management team, should conduct a cyber risk assessment and identify potential gaps. From there, organizations can work with their insurance broker to customize a policy that meets their specific needs.

Key Considerations When Buying Cyber Insurance

Buying cyber insurance is not a one-size-fits-all process. To ensure your business has sufficient cyber coverage, it is critical to assess your needs and consider your specific risks. The following are some common elements of cyber insurance policies to consider when building optimal coverage for your business:

  • Limits and sublimits—Hierl Insurance Inc. can assist you in determining appropriate limits by utilizing industry benchmarking data and projected breach costs. From there, we can examine your sublimits, which don’t provide extra coverage, but set a maximum to cover a specific loss.
  • Retroactive coverage—Breaches can go undiscovered for years. For protection from unidentified cyber incidents, ask for a retroactive date that is earlier than the policy’s inception date.
  • Exclusions—Common cyber policy exclusions, such as outdated software, unencrypted mobile devices and penalties from credit issuers, can adversely impact coverage. Understand your policy exclusions before committing.
  • Panel provisions—Many insurance companies require policyholders to use preapproved investigators, consultants and legal professionals in the event of a cyber breach. If you have a preferred team of experts, make sure your preferred policy allows you to work with them before signing.
  • Consent provisions—Some cyber policies contain consent provisions that require obtaining the insurer’s consent before incurring certain expenses related to cyber claims. If prior consent provisions are included in the policy and cannot be removed, policyholders can change them to ensure that the carrier’s consent cannot be unreasonably withheld.
  • Vendor acts and omissions—Most organizations use third-party vendors to process or store a portion of their data. While they make it easier to do business, they also represent a potential exposure. It is critical that your business’s cyber liability policy covers claims that result from breaches caused by your vendors.

Cyber insurance is continually evolving alongside emerging cyber threats. Contact Hierl Insurance Inc. to help proactively assess your risks and ensure that your insurance coverage is in line with your specific business practices and exposures.

 

 

 

 

Yahoo Says All Accounts Were Hacked in 2013

Yahoo recently announced that, in contrast to an earlier estimate, all 3 billion of its accounts were hacked in 2013. The news could not only increase the legal exposure for Yahoo’s new owner Verizon Wireless, but also increase the number of class-action lawsuits expected in U.S. federal and state courts.

Recently obtained information shows that the stolen information did not include passwords in clear text, bank account information or card data. However, this information was protected with outdated encryption that experts said is easy to crack. It also included backup email addresses and security questions that could make it easier to break into other user accounts.

In late 2016, Yahoo made users change their passwords if they hadn’t since the hack, and invalidated old security questions and answers.

Equifax Cyber Security Incident

Equifax Inc. announced in September that about 143 million U.S. consumers may have been affected by one of the largest breaches in history.

Names, Social Security numbers, birthdates, addresses and driver’s license numbers were accessed by the intruders, according to a statement from Equifax. Credit card numbers for about 209,000 consumers were also accessed.

GDPR Compliance Deadline Approaching

The General Data Protection Regulation (GDPR) requires businesses to protect the personal data and privacy of European Union (EU) citizens for transactions that occur within EU member states. Noncompliance could be costly for businesses—amounting to up to €20 million or 4 percent of global annual turnover, whichever is higher.

Companies that do business with customers in the EU must be able to show compliance by May 25, 2018. For more information on whether the GDPR affects your business, and how to comply, visit the website of the European Commission here.


Safety Focused Newsletter - November 2017

At Hierl, we take the safety of our workforce very seriously. Every month, we do our best to inform our employees, as well as other employers, on ways to reduce the risk of violence in the workplace. This month, we've decided to focus on the importance of a clean, walkable workplace, and - in light of the unfortunate violence across the US - we want to put a spotlight on safety when it comes to terrorism in the workplace.

Declutter for a Safe Workplace

A cluttered, unorganized workspace isn’t just unsightly—it is also dangerous. Poor workplace housekeeping, such as failing to clean up after yourself, can contribute to the following:

  • Injuries caused by slips and falls when clutter is on the floor
  • Potential fire hazards
  • Exposure to hazardous dust and vapors
  • Ergonomics issues that arise when clutter takes over your workspace, leaving you little room to work

No matter what type of environment you work in, it is important to keep your workspace clean and organized, not only for safety reasons, but also for productivity and morale. According to researchers, a cluttered environment can cause stress, and restrict your ability to focus and process information. The following tips can help you keep your workspace safe and organized:

  • Regularly wipe down your workstation with a damp cloth or disinfecting wipe to remove dust, dirt and germs. Don’t forget the keyboard and mouse if you use a computer.
  • Clean up spills and dispose of all trash immediately.
  • Avoid eating at your workstation, especially if you work with hazardous materials.
  • Keep walkways and floors free of clutter and tripping hazards.
  • Store equipment in designated areas when tasks are complete.

What to Do in the Event of an Active Shooter

Workplace violence may be a rare occurrence, but you should never underestimate the importance of being prepared in the event that your workplace is targeted by an active shooter. An active shooter is an individual who is engaged in killing or attempting to kill people in a confined and populated area.

Shootings can happen anytime, anywhere. The general perception is that these events happen in bad areas or in buildings that contain key members of society. However, this is not always the case, and the majority of shootings that occur in the workplace are carried out by employees, or former employees, for reasons associated with their job.

While you may not be able to prevent an attack from happening, it is critical to keep the following tips in mind in the event that your workplace experiences an active shooter incident:

  • Evacuate the premises if possible.
  • Call 911 if you can do so safely.
  • Warn everyone you encounter to leave the area.
  • Remain silent and still if you can’t flee safely. Be sure to silence any devices you may be carrying.
  • Block any doors with heavy furniture if you are hiding in a room. Don’t stand near any windows.

Only fight back as a last resort. Be sure to cooperate with emergency personnel—it can mean the difference between life and death. When law enforcement arrives, be sure to react in the following ways:

  • Calmly follow instructions.
  • Put down any items you are carrying, and keep hands visible at all times.
  • Provide as much information as you can.

Attacks can happen without warning. Since they are often finished before law enforcement arrives on the scene, it is important to consider the threat of an active shooter in advance and be aware of your company’s emergency procedures.


Compliance Bulletin: Newly Adopted Wage Equity Laws

OVERVIEW

In an effort to close the wage gap that exists between male and female employees, a number of states and major cities have recently adopted wage equity and salary history laws. According to the Bureau of Labor Statistics, in 2016, the average female employee earned 80 cents for every dollar a man received during the same period. Statistics suggest the gap may be even greater for ethnic or racial minority employees. When applicable, employers must comply with their state and local laws in addition to the Federal Equal Pay Act. When both federal and local laws differ, the law that provides the greater protection or benefit to the employee applies.

ACTION STEPS FOR EMPLOYERS

Affected employers should:

  • Eliminate prohibited salary history inquiries.
  • Update job applications and other employment forms to comply with pay equity laws.
  • Train recruiters and hiring managers regarding applicable pay equity laws.

 

State Laws

New York City

Effective date: Oct. 1, 2017

An amendment to the New York City Human Rights Law prohibits employers from inquiring into a candidate’s salary history as an unlawful discriminatory practice.

Covered Employers: New York City employers and employment agencies with four or more employees. Individuals employed by a parent, spouse or child, and individuals engaged in domestic service are not considered employees under this amendment.

Covered Individuals: Candidates and new hires during the hiring process, except internal transfers or promotions, when public employees’ salaries are determined by collective bargaining or when disclosure of salary history is mandated by law.

Requirements: A covered employer is prohibited from inquiring about or relying on a candidate’s salary history when determining a salary offer.

Oregon

Effective dates: Salary inquiries Oct. 1, 2017

Protected classes and posting requirements Jan. 1, 2019

In addition to prohibiting salary history inquiries, the Oregon Equal Pay Act of 2017 extends pay equity protections to nine additional protected classes.

Covered Employers: All Oregon employers.

Covered Individuals: All Oregon job applicants.

Requirements: Effective Oct. 1, 2017, employers are prohibited from inquiring about an applicant’s salary history. Effective Jan. 1, 2019, employees who perform comparable work cannot be paid different pay rates based on race, color, religion, sex, sexual orientation, national origin, marital status, veteran status, disability or age.

Delaware

Effective date: Dec. 1, 2017

An amendment to Title 19 of the Delaware Code prohibits employers from asking a candidate’s compensation history during the interview process.

Covered Employers: All Delaware employers and hiring agencies.

Covered Individuals: All Delaware job candidates.

Requirements: Employers are prohibited from making inquiries concerning a candidate’s compensation history, using that history to screen candidates or requiring that prior compensation satisfy minimum or maximum criteria.

Massachusetts

Effective date: July 1, 2018

The Pay Equity Act addresses equal pay for comparable work, allowable variations in wages, pay secrecy policies and using salary history in the hiring process.

Covered Employers: All Massachusetts employers.

Covered Individuals: All Massachusetts employees and candidates.

Requirements: Employers are prohibited from inquiring about or relying on a candidate’s salary history during the hiring process.

San Francisco

Effective date: July 1, 2018

The Parity in Pay Ordinance prohibits employers from making inquiries concerning a job applicant’s salary history.

Covered Employers: San Francisco employers, those contracting with the city and their agents.

Covered Individuals: All job applicants, including temporary or seasonal workers.

Requirements: Employers are prohibited from asking an applicant’s salary history. Salary history may not be considered in the hiring process or when determining a salary offer. Employers are prohibited from disclosing a current or former employee’s salary history without prior authorization, unless the information is publicly available.

 

Applicable Federal Laws

In addition to the state and local laws mentioned above, employers should be aware of the following federal laws that regulate employment discrimination and other aspects of the hiring and employment processes.

Equal Pay Act

The Equal Pay Act (EPA) requires that men and women receive equal pay for equal work.

Covered Employers and Employees: Virtually all employers and employees.

Requirements: Employers are required to pay equal pay for equal work, regardless of gender. Men and woman in substantially equal jobs, those requiring equal skill, effort, and responsibility and performed under similar conditions at the same workplace, must be paid equally.

Title VII, ADEA, ADA

Title VII, the Age Discrimination in Employment Act (ADEA) and the Americans with Disabilities Act (ADA) prohibit compensation discrimination based on race, color, religion, sex, national origin, age or disability. There is no requirement that the jobs be substantially equal.

Covered Employers and Employees: Title VII and ADA, all employers with 15 or more employees. ADEA, all employers with 20 or more employees.

Executive Order 11246

Executive Order 11246 prohibits discrimination in employment decisions based on race, color, religion, sex, sexual orientation, gender identity or national origin.

Covered Employers and Employees: Federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in government business in one year.


Cyber Liability - 9 Cyber Risk Questions Every Board Should Ask

When a data breach or other cyber event occurs, the damages can be significant, often resulting in lawsuits, fines and serious financial losses. What’s more, cyber exposures impact businesses of all kinds, regardless of their size, area of focus, or status as a private or public entity.

In order for organizations to truly protect themselves from cyber risks, corporate boards must play an active role. Not only does involvement from leadership improve cyber security, it can also reduce liability for board members.

To help oversee their organization’s cyber risk management, boards should ask the following questions:

 

Does the organization utilize technology to prevent data breaches?

Every company must have robust cyber security tools and anti-virus systems in place. These systems act as a first line of defense for detecting and preventing potentially debilitating breaches.

While it may sound obvious, many organizations fail to take cyber threats seriously and implement even the simplest protections. Boards can help highlight the importance of cyber security, ensuring that basic, preventive measures are in place.

These preventive measures must be reviewed on a regular basis, as cyber threats can evolve quickly. Boards should ensure that the management team reviews company technology at least annually, ensuring that cyber security tools are up to date and effective.

 

Has the board or the company’s management team identified a senior member to be responsible for organizational cyber security preparedness?

Organizations that fail to create cyber-specific leadership roles could end up paying more for a data breach than organizations that do. This is because, in the event of a cyber incident, a fast response and clear guidance is needed to contain a breach and limit damages.

When establishing a chief information security officer or similar cyber leadership role, boards need to be involved in the process. Cyber leaders should have a good mix of technical and business experience. This individual should also be able to explain cyber risks and mitigation tactics at a high level so they are easy to understand for those who are not well-versed in technical terminology.

It should be noted that hiring a chief information security officer or creating a new cyber leadership role is not practical for every organization. In these instances, organizations should identify a qualified, in-house team member and roll cyber security responsibilities into their current job requirements. At a minimum, boards need to ensure that their company has a go-to resource for managing cyber security.

 

Does the organization have a comprehensive cyber security program? Does it include specific policies and procedures?

It is essential for companies to create comprehensive data privacy and cyber security programs. These programs help organizations build a framework for detecting threats, remain informed on emerging risks and establish a cyber response plan.

Corporate boards should ensure that cyber security programs align with industry standards. These programs should be audited on a regular basis to ensure effectiveness and internal compliance.

 

Does the organization have a breach response plan in place?

Even the most secure organizations can be impacted by a data breach. What’s more, it can often take days or even months for a company to notice its data has been compromised.

While cyber security programs help secure an organization’s digital assets, breach response plans provide clear steps for companies to follow when a cyber event occurs. Breach response plans allow organizations to notify impacted customers and partners quickly and efficiently, limiting financial and reputational damage.

Board members should ensure that crisis management and breach response plans are documented. Specific actions noted in breach response plans should also be rehearsed through simulations and team interactions to evaluate effectiveness.

In addition, response plans should clearly identify key individuals and their responsibilities. This ensures that there is no confusion in the event of a breach and your organization’s response plan runs as smoothly as possible.

 

Has the organization discussed and formalized a cyber risk budget? How engaged is the board in terms of providing guidance related to cyber exposures?

Both overpaying and underpaying for cyber security services can negatively affect an organization. Creating a budget based on informed decisions and research helps companies invest in the right tools.

Boards can help oversee investments and ensure that they are directed toward baseline security controls that address common threats. Boards, with guidance from the chief security officer or a similar cyber leader, should also prioritize funding. That way, an organization’s most vulnerable and important assets are protected.

 

Has the management team provided adequate employee training to ensure sensitive data is handled correctly?

While employees can be a company’s greatest asset, they also represent one of their biggest cyber liabilities. This is because hackers commonly exploit employees through spear phishing and similar scams. When this happens, employees can unknowingly give criminals access to their employer’s entire system.

In order to ensure data security, organizations must provide thorough employee training. Boards can help oversee this process and instruct management to make training programs meaningful and based on more than just written policies.

In addition, boards should see to it that education programs are properly designed and foster a culture of cyber security awareness.

 

Has management taken the appropriate steps to reduce cyber risks when working with third parties?

Working alongside third-party vendors is common for many businesses. However, whenever an organization entrusts its data to an outside source, there’s a chance that it could be compromised.

Boards can help ensure that vendors and other partners are aware of their organization’s cyber security expectations. Boards should work with the company’s management team to draw up a standard third-party agreement that identifies how the vendor will protect sensitive data, whether or not the vendor will subcontract any services and how it intends to inform the organization if data is compromised.

 

Does the organization have a system in place for staying current on cyber trends, news, and federal, state, industry and international data security regulations?

Cyber-related legislation can change with little warning, often having a sprawling impact on the way organizations do business. If organizations do not keep up with federal, state, industry and international data security regulations, they could face serious fines or other penalties.

Boards should ensure that the chief information security officer or similar leader is aware of his or her role in upholding cyber compliance. In addition, boards should ensure that there is a system in place for identifying, evaluating and implementing compliance-related legislation.

Additionally, boards should constantly seek opportunities to bring expert perspectives into boardroom discussions. Often, authorities from government, law enforcement and cyber security agencies can provide invaluable advice. Building a relationship with these types of entities can help organizations evaluate their cyber strengths, weaknesses and critical needs.

 

Has the organization conducted a thorough risk assessment? Has the organization purchased or considered purchasing cyber liability insurance?

Cyber liability insurance is specifically designed to address the risks that come with using modern technology—risks that other types of business liability coverage simply won’t cover.

The level of coverage your business needs is based on your individual operations and can vary depending on your range of exposure. As such, boards, alongside the company’s management team, need to conduct a cyber risk assessment and identify potential gaps. From there, organizations can work with their insurance broker to customize a policy that meets their specific needs.

Asking thoughtful questions can help boards better understand the strategies management uses to prevent, detect and respond to data breaches. When it comes to cyber threats, organizations need to be diligent and thorough in their risk prevention tactics, and boards can help move the cyber conversation in the right direction.

Cyber exposures impact organizations from top to bottom, and all team members play a role in maintaining a secure environment. However, managing personnel and technology can be a challenge, particularly for organizations that don’t know where to start.

That’s where Hierl Insurance Inc. can help. Contact us today to learn more about cyber risk mitigation strategies you can implement today to secure your business.


Safety Focused Newsletter - October 2017

Driver Safety After Dark

The approach of autumn brings less daylight, which results in an increase in traffic deaths. Follow these tips to stay safe during your evening commute.

5 Common Reasons for Injuries to New Employees

Almost one-third of workplace injuries involve workers who have been on the job for less than one year. Learn the most common injuries to new employees and how to prevent them.

Driver Safety After Dark

The approach of autumn brings less daylight, which results in an increase in traffic deaths. In fact, since drivers aren’t used to the decreased visibility, traffic deaths are three times more common after the sun goes down than during the daytime—both for drivers and pedestrians.

Studies suggest that it can take several days to adapt after daylight saving time ends. Although the extra hour of sleep is often celebrated, many people still feel fatigued. Whether you drive for your job or commute home from work in the evening, it is important to remember the following safety tips:

  • Test your headlights, and turn them on one hour before sunset and one hour after sunrise so other drivers can see you easily.
  • Do not look directly at oncoming headlights. Look toward the right side of the road, following the white line with your eyes.
  • Increase your following distance by four or five seconds to give yourself more response time.
  • If you have vehicle trouble, pull off the road as far to the right as possible. Set up reflector triangles near your vehicle and up to 300 feet behind it. Turn on your flashers and your dome light, and call for assistance.

5 Common Reasons for Injuries to New Employees

Thirty percent of all work injuries involve employees who have been on the job for less than a year, according to the Bureau of Labor Statistics. The following are the most common reasons for injuries to new employees, as well as ways to prevent them.

  1. Unfamiliarity with workplace hazards—Even if you will be doing the same job as you did elsewhere, don’t assume you’re aware of all potential job hazards and hazardous substances in your new environment. If you have questions, ask.
  2. Fear of asking questions—New employees may be too intimidated to ask questions. Remember that there is no such thing as a silly question when it comes to your safety. Also, be sure to use constructive criticism as a learning experience.
  3. Improper use of personal protective equipment (PPE)—Your past employer may have been lax with its PPE requirements. Don’t bring any bad habits to your new role. Feel free to ask for proper PPE training.
  4. Employer’s assumption of expertise—Some employers may be accustomed to dealing with employees who have been on the job for years and fail to realize the need to properly train new hires. Although your resume may be impressive, don’t assume that you’re qualified to do the job without proper training.
  5. Poor safety communication—A common cause of employee injuries is the inability to understand urgent safety messages. Make sure you’re familiar with emergency safety protocols and that you understand not only what to do in an emergency, but also the method your employer will use to communicate the safety message.


HRL - Employees - Happy

Who’s using what in P&C insurance

With the emergence of 21st century technology, there are bountiful risks for the cyber lives of millions. In this article written by PROPERTYCASUALTY360, learn how different companies grow to combat the threat of employer risk.

You can read the original article here.


Guidewire Software, Inc. has entered into a definitive agreement to acquire Cyence, a software company that applies data science and risk analytics to enable P&C insurers to grow by underwriting “21st century risks” that have gone underinsured or uninsured. These emerging risks include cyber, reputation, and new forms of business interruption risk. “As traditional actuarial approaches struggle to address the unique characteristics of emerging risks like cyber, Cyence’s next-generation approach will enable insurers to broaden the scope and value of the products their policyholders need,” , Guidewire Software CEO and Co-Founder Marcus Ryu said in a press release.

In other news from Guidewire: MetLife Auto & Home has begun deploying Guidewire’s InsurancePlatform™ in a new cloud environment for customers using its MetLife Auto & Home MyDirect portal. MetLife Auto & Home is the first P&C insurer in the United States to offer a 100-percent digital experience from quoting to claim service. Rollout of the platform is expected to continue over the next several quarters.

Hearsay Systems recently announced a strategic alliance with Microsoft to help financial services firms empower advisors to be both high-tech and high-touch at scale in the digital age. The companies will focus on addressing the specific challenges faced by financial institutions, including the need for compliant advisor-client engagement technology that will enable advisors to better manage client relationships and grow business. The alliance will bring together the data-driven relationship insights from Microsoft Dynamics 365 with the financial industry-specific workflows, data and compliance capabilities from Hearsay, allowing advisors to more effectively acquire, convert and deepen client relationships.

Allianz Global Corporate & Specialty® (AGCS) has teamed up with Silicon Valley-based software company Zeguro, whose mission is to simplify and streamline cyber security and risk management  in small to medium-sized businesses (SMBs). Through its easy-to-use platform, Zeguro will serve as a virtual Chief Information Security Officer (CISO) to those who purchase Allianz’s cyber insurance coverage to further manage their cyber exposure and decrease the overall risk of financial loss following a cyberattack.

Accenture and Duck Creek Technologies recently teamed up to create several new digital and emerging technology solutions for P&C insurers that are designed to improve efficiency and value. The companies have integrated Accenture’s IoT and analytics technologies with Duck Creek’s core platform and launched a blockchain proof-of-concept for medical bill auditing. “These new tools are the product of our focus on providing a new generation of digital solutions to our insurance clients working in collaboration with our joint venture partners,” Cindy DeArmond, managing director and P&C Core Platforms Lead for Accenture in North America, said in a press release.

Louisiana-based Aparicio Walker & Seeling, Inc. (AWS Insurance) is live on TechCanary’s insurance platform replacing its outdated legacy agency management system.  TechCanary’s breadth and depth of insurance functionality built in Salesforce and flexibility to easily customize it further were key to the decision.

Speedpay, Inc., a Western Union company, and Nordis Technologies recently announced an alliance to offer cloud-based customer communications management services to Speedpay clients. This strategic agreement provides current and future Speedpay clients with the opportunity to add Expresso®, an easy-to-use, self-service application to organize, automate and execute print and electronic communications. Nordis also delivers print/mail and email production services, thus enabling a seamless end-to-end communications solution.

 

You can read the original article here.

Source:

PropertyCasualty360 (9 October 2017). "Who’s using what in P&C insurance" [Web Blog Post]. Retrieved from address http://www.propertycasualty360.com/2017/10/09/whos-using-what-in-pc-insurance-oct-9-2017?t=agency-technology?ref=channel-news


HRL - Office - Collaboration - Write - Paper

Better risk management means balancing old, new skills

What changes are happening within the P&C industry? Read this informative article written by  STEVEN R. CULP  and DUNCAN BARNARD of Property Casualty 360 degrees to find out!

You can read the original article here.


The P&C industry is undergoing fundamental change, with significant consequences for the risk function. New approaches to data, the workforce, partners and customers are changing the way insurers operate.

The stakes are high, and with interest rates low, revenue streams are under threat while new competitors are entering from all sides.

At the same time, insurers are encountering new obstacles — from regulatory uncertainty to reduced demand among millennials.  The Internet of Things, autonomous vehicles and other major shifts present major challenges along with large opportunities.

P&C insurers and insurance professionals can use these AI tools right now to run smarter, faster — and ahead of...

To survive — let alone thrive — insurers need to evolve. The scale of the evolution could be challenging, but many of the changes that are needed should add significant long-term value. For example, the availability of real-time data allows P&C insurers to think about new products and propositions to unlock predictive and opportunistic strategies.

 

Insurers are also rethinking their relationships with all stakeholders, becoming a "partner" to customers, brokers and other intermediaries while establishing deeper ties in adjacent industries such as automotive and home security. An openness to new technologies also demands a broader ecosystem of supply partners, including technology companies, insurtech firms, venture capitalists and digital specialists.

As we have done in alternate years since 2009, Accenture conducted extensive research in 2017 among nearly 500 global risk management executives in the financial services industry, including 190 in insurance.

We wanted, in part, to understand how insurers view the challenges facing the risk management function. We found that P&C insurers are facing the world with a bit more confidence than their life insurance counterparts. For example, only 61 percent of P&C respondents saw balancing the responsibilities for control and compliance with the need for effective customer service as a major impediment to effectiveness, versus 84 percent of insurers. And only 65 percent of P&C respondents reported being hampered by shortages of skills in new and emerging technologies, versus 71 percent of life insurers.

However, while there were some differences from sector to sector, we found that both P&C and life insurers are taking a more progressive approach to risk management when compared to our earlier research. They are investing to develop their risk functions in three key areas

Innovation is everywhere in insurance.

Innovation is everywhere in insurance. (Photo: iStock)

Harnessing digital innovation

Advances in big data and analytics are helping insurers better understand risk, build stronger predictive models and tailor customer relationships to suit personal preferences and risk attitudes.  At the same time, robot brokers are on the rise, new platforms are providing micro-pooling “social insurance” models, and sensors allow insured cargo to report every bump, scrape and drop impact it endures in transit. In parallel, some of the most transformative technologies are being implemented deep in the back offices of the world’s leading insurers.

P&C insurers and insurance professionals can use these AI tools right now to run smarter, faster — and ahead of...

The cloud is a great example. Our 2017 Global Risk Management Study finds that cloud technology is virtually ubiquitous—91 percent of insurers are using it — but just 26 percent are highly proficient in using cloud within their organization, 36 percent are not using it to its full potential, and 29 percent are only just introducing it. Respondents want to improve efficiency in response to cost pressures, and cloud is the top choice in this regard, with 77 percent indicating their risk function uses it to reduce costs.

Balancing old and new skills

New tools and processes change how risk teams interact with the business, alliances, regulators, customers and other external stakeholders, requiring new skills and a better balance of attributes across teams. Beyond quantitative skills, the risk management function needs to be able to deliver value by providing economic insights, generating new ideas and building strong relationships throughout the organization in pursuit of the overall strategic objectives.

To support these goals, some insurers are bringing staff into the risk function from other areas of the business to enhance credibility and facilitate relationships. Others are hiring from diverse disciplines, including economics, the law and engineering. There are few professionals who possess every skill the risk function needs. From general quantitative competencies to technology acumen, industry knowledge, niche risk specialties, communication skills, creativity and management experience, candidates with the whole package are extremely rare.

Integrating across the business

Currently, 54 percent of insurance respondents say there is limited coordination between risk management activities at the local level and the group level. While some aspects of centralization are desirable to enable a more aggregated and consistent picture for analysis and evaluation, the reality is that risk exists everywhere in the business and risk professionals need to be engaged throughout the business — not only at an aggregate level.

Central frameworks and tools help to provide a more standardized and coordinated response to regulation, a consistent set of rules for managing the portfolio of risks and the capability to perform complex and high-value calculations to measure risk exposure, liquidity and solvency. But decentralization is also valuable because local or specialized teams can focus on local regulatory requirements and market-specific topics. Any effective risk management function must be able to exist locally and centrally, being close to the business and connected across the organizational structure to manage the overall portfolio, including strategic and emerging risks.

As the study results indicate, the nature of risk is changing. It is up to P&C firms and their risk management functions to create and continually develop a dedicated emerging-risk working group that can identify and evaluate the nature of emerging risks and their potential impacts. That may be the best way to address the constant and disruptive change confronting the industry.

 

You can read the original article here.

Source:

Culp S., Barnard D. (6 October 2017). "Better risk management means balancing old, new skills" [Web Blog Post]. Retrieved from address http://www.propertycasualty360.com/2017/10/06/better-risk-management-means-balancing-old-new-ski?t=commercial-business%3Fref%3Dchannel-feature&page=2


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Using data to identify high-intent consumers

Does your company struggle with acquiring high performing leads? Check out this article from Property Casualty 360 degrees written by JAIMIE PICKLES.

You can read the original article here.


For years, insurance companies and agents have acquired third-party internet leads as an efficient way to supplement their own lead generation efforts. But with the shift toward digital engagement and increasing regulatory compliance concerns, acquiring high performing leads has become a much more complicated venture.

According to a recent study by J.D. Power, 74% of auto insurance consumers use insurance brand or aggregators websites for obtaining quotes and information. This is something that holds true across almost all lines of insurance.

Regardless of device, the preferred platform for shopping is now digital.

But while brand websites generate a percentage of insurance leads, more consumers are choosing the choice model that internet lead generators and aggregators offer to research and obtain quotes. This is because more consumers prefer to have access to what they perceive as independent and unbiased sources for information and quotes.

 

Mitigate TCPA compliance risk

Compliance with the Telephone Consumer Protection Act (TCPA) has become more of a priority for insurance brands and their partners over the past few years. TCPA lawsuits filed by consumers are on the rise — growing by a factor of 1,273 percent since 2010 — and a number of large insurance brands have been part of multimillion-dollar TCPA settlements.

For example, in May 2017, a Florida-based insurer settled a class action TCPA lawsuit for $4.25 million. And that does not include the court costs and legal fees or the cost to counter bad the bad PR and lost brand reputation from the case.

Knowing definitively that a consumer has given consent to be contacted is a must. Ted Todd Insurance is a multi-office agency in Florida which generates leads on its own website and buys online leads from third party lead generators. They assure TCPA compliance by using a SaaS-based solution to track and verify consumer consent.

CEO Charley Todd says, "the technology tracks and assures the existence of the consumer’s consent, delivering a positive first experience for every new customer, and provides persuasive evidence in the event of a consumer complaint or lawsuit."

 

Analyze the right data

With the overabundance of data that insurance brands have, from internal and external sources, it is not always easy to make sense of it all. Even with a sophisticated data science and analytics program, the key is getting access to the right data at the right time, to help optimize your marketing programs.

In the case of customer acquisition, that begins with having access to data that you can  use to help score, prioritize and route higher-performing leads. By knowing the origin and history of your leads, you’ll be able to mitigate TCPA compliance risk and prioritize selection of and engagement with higher-intent consumers.

The majority of the top ten insurance companies in the United States are doing just that — connecting the dots and using sophisticated technology and data — to gain real-time intelligence into the origin, history and intent of the leads they are acquiring. Such solutions enable insurance companies and agents to follow consumers in real time on their buying journeys until the end when consumers purchase a policy, helping insurers observe and access behavioral data which they can use to analyze the intent of the consumer.

When marketers gain the ability to identify and take action on consumer behavioral data, buying low-intent leads is no longer part of the "cost of doing business" in lead management and analysis. Brands that leverage these insights gain efficiencies and can better focus their precious time and budgets on productive leads.

 

Optimize lead acquisition and marketing

In implementing technology solutions, here are five tips to supercharge your lead generation.

  1. Know the age of your leads. If you’re measuring speed-to-lead from the moment you received a lead post, you are missing a key data point. It’s not about when you received the lead, but rather when the consumer actually submitted the inquiry.
  1. Be proactive in avoiding fraudulent leads and those that are not TCPA compliant. Consumers who didn’t fill out the form or who filled it out six months ago have no intent to buy from you. Also, these leads put you at risk for TCPA complaints. Only purchase leads that are TCPA compliant. You don’t want to damage your brand and reputation, or take on the costs if you are sued by a consumer. You need a vendor who can help you identify, in real-time, that your leads are compliant and provide persuasive proof that a consumer gave consent to be contacted.
  1. Don’t get dupedMany marketers assume that a duplicate is the result of recycled data. They think that the same consumer means it is the same inquiry. In fact, it could very likely be the same consumer with a brand new inquiry, which is actually indicative of a high-intent consumer. Know the difference.
  1. Understand if leads are shared vs. exclusive. Know if your leads are being shared with some of your competitors. If they are, you need to determine how many other competitors that lead is being shared with and whether you are the first or last to receive it.
  1. Right price your leads. If you find a vendor who will help you identify low intent leads, you can reallocate that spend and pay more for higher intent leads. This is a key strategy to quickly and notably improve lead conversion.

 

You can read the original article here.

Source:

Pickles J. (9 October 2017). "Using data to identify high-intent consumers" [Web Blog Post]. Retrieved from address http://www.propertycasualty360.com/2017/10/09/using-data-to-identify-high-intent-consumers?ref=hp-news