< Previous8BEST’S REVIEW • NOVEMBER 2022 Executive Changes consumer-facing technology at Allstate, advancing its technology platforms and enabling digital transformation across the company. He will oversee architecture and systems engineering as well as the technology Allstate uses for products, investments and internal shared services, according to the company. Jeevanjee rejoins Allstate from CVS, where he was senior vice president and chief technology officer. In this role, Jeevanjee defined the technology strategy that the giant health insurer and pharmacy chain is using to engage its customers in all aspects of their health, the company said. Prior to CVS, Jeevanjee was SVP, enterprise architecture and innovation at Allstate, according to his LinkedIn profile. He was instrumental in designing and developing the new technology platform that is the foundation of Allstate’s ongoing technology transformation, according to the company. He previously was chief technology officer at Wells Fargo and chief architect at Wachovia Securities and A.G. Edwards, the company said. Swiss Re Group Chief Investment Officer to Step Down After 25 years With Company Swiss Re announced that Guido Fürer, Swiss Re’s group chief investment officer and country president Switzerland, will retire effective March 31, 2023, after 25 years with the company, the past 10 years as group CIO. Fürer said he is retiring to spend more time with his family and dedicate himself to his pro bono activities on various foundation boards. Fürer in 1990 started his career at Swiss Bank Corp./ O’Connor Associates, where he held leading positions in option trading at its capital market division. He joined Swiss Re in 1997 as managing director at Swiss Re new markets, and from 2001 to 2004 he worked for Swiss Re’s private equity unit. In 2004, he joined asset management with responsibility for tactical asset allocation prior to assuming the role of head of strategic asset allocation, according to his company bio. Fürer has led Swiss Re group asset management since his appointment as group chief investment officer and member of the group executive committee in November 2012. In 2019, he additionally assumed the roles of Swiss Re country president Switzerland and chairman of the Swiss Re strategic council, according to his company bio. Axis Capital Holdings Appoints Group Chief Underwriting Officer Axis Capital Holdings Ltd. named Dan Draper as group chief underwriting officer. In his new role, Draper joins the executive committee and will guide the centralization of the company’s underwriting analytics and support functions into a single division that he will oversee. In addition, Draper will partner with the company’s underwriting divisions on portfolio strategy and governance, including exposure management, as well as introducing greater innovation into products and services delivered to existing and new customer segments. He is based in London, according to a company statement. Draper previously served for more than two years as group head of underwriting at Axis. Prior to that, he had been group chief risk and actuarial officer at Vibe. Before joining Vibe, Draper spent eight years with Axis, holding a number of leadership roles that included group chief actuary, chief risk analytics officer, and insurance segment chief risk officer. Before that, he held managerial positions at the Financial Services Authority, XL Capital, and EY, according to a company statement. Axa Ireland Names Successor to Retiring CEO Axa Insurance DAC, the largest general insurance company in Ireland, has appointed Marguerite Brosnan to succeed Philip Bradley as chief executive officer of its operations in the Republic of Ireland and Northern Ireland on Jan. 1, 2023. Bradley will retire on Dec. 31 after a 44-year career. Bradley joined Axa in 1978 and has held various roles in the United Kingdom, France and Ireland and was appointed as CEO of Axa’s operations in the Republic of Ireland and Northern Ireland in 2015. During his tenure, Axa’s business has grown strongly to become a leader in the Irish market, according to a company statement. Guido Fürer Dan Draper Marguerite Brosnan Photo by Fennell Photography9BEST’S REVIEW • NOVEMBER 2022 Brosnan is currently retail director with the company. She joined Axa in 2020 after an extensive 20-year career with Bank of Ireland, where she held a variety of senior sales and operations roles, most recently as managing director of Bank of Ireland Insurance and transformation director for Bank of Ireland Wealth and New Ireland Assurance. Since joining Axa, Brosnan has overseen an ambitious transformation strategy that has significantly contributed to Axa’s continued growth and consolidation of its market leading position, the company said. Axa XL Names Chief Executive Officer for XLRE Europe Axa XL has named Bertrand Romagne as chief executive officer for XLRE Europe. This role will be in addition to his new leadership responsibilities for the international region, which were announced in early May. Romagne previously served as CEO Europe and chief underwriting officer property/casualty, International Re. He has more than 30 years of experience working with teams across continental Europe and international markets, leading the nonlife business, according to a company statement. Romagne started his career in reinsurance in 1992 as a property facultative underwriter for Mutuelles du Mans. He became head of the fac department and in 2002 he transitioned to the treaty department within Le Mans Re/XL Re. Following this change, he became the head of property treaty for Europe and then for Europe, Middle East and Africa. In 2005, Romagne became the underwriting director for the reinsurance EMEA region. In 2022, he assumed the roles of CEO International, reinsurance as well as becoming CEO of XLRE Europe, the company said. PartnerRe Hires New Chief Financial Officer PartnerRe Ltd. has appointed Abina Kealy to succeed Nick Burnet as chief financial officer. She also will become a member of PartnerRe’s executive leadership team. Burnet will be leaving the company to pursue other opportunities and will continue at PartnerRe until the end of the year to support the transition process and in a consultancy capacity through February 2023, according to a company statement. Burnet joined PartnerRe as CFO in 2020, based in Bermuda. During his time with PartnerRe, he was a member of the executive leadership team with executive responsibility for finance, actuarial, reserving, risk management and third-party capital, the company said. Kealy joined PartnerRe in 2009. Based predominantly in Dublin, she has held a number of senior finance roles, most recently chief accounting officer responsible for all external reporting for the PartnerRe Group. Prior to that, she was CFO of Europe & Asia-Pacific and controller for the property/ casualty business unit and head of group planning within the financial planning & analysis department. Since 2019, Kealy has headed PartnerRe’s implementation program for the new insurance accounting standard, IFRS 17. She will continue to be based in PartnerRe’s Dublin office, according to the company. Bertrand Romagne Abina Kealy 010,000,00020,000,00030,000,00040,000,000 Travelers Group Farmers Ins Group Nationwide Group Liberty Mutual Ins Co Allstate Ins Group Auto Club Enterprises Ins Group CSAA Ins Group USAA Group State Farm Group Progressive Ins Group Web Traffic: Visits to US Homeowners Multiple Peril Writers Visits Source: www.semrush.com Reported traffic for September 2022. Visit news.ambest.com for a full listing of Best’s Rankings. Progressive leads web analytics provider Semrush’s ranking of the top 10 U.S. Homeowners Multiple Peril Writers based on 2021 direct premiums written.10BEST’S REVIEW • NOVEMBER 2022 Executive Changes Rendez-Vous de Septembre Association Taps Former Scor CEO as President The Rendez-Vous de Septembre Association has named Denis Kessler to succeed Claude Tendil as president. Tendil has chaired the annual reinsurance gathering in Monte Carlo since 2013. This year, after having been canceled the previous two years because of the COVID-19 pandemic, the event welcomed more than 2,800 registered participants, according to an RVS statement. Kessler has been a member of the association and representative of the French market since 2010. He was previously chief executive officer at Scor before leaving in 2021. Rendez-Vous is the largest gathering in the reinsurance industry and has allowed all players in the insurance and reinsurance market to meet up and hold bilateral discussions ahead of the renewals, the RVS said. Big ‘I’ Names Successor to Retiring President and CEO The Independent Insurance Agents & Brokers of America— known as the Big “I”— named Charles Symington to succeed Bob Rusbuldt as president and chief executive officer, effective Sept. 1, 2023. Rusbuldt will retire on Aug. 31, 2023. He is the longest-tenured Big “I” top executive, according to an association statement. Rusbuldt joined the association in 1986 and was named CEO in 2001 after leading the government affairs department at the Big “I” for many years. He has overseen many major Big “I” initiatives including the inception of Big “I” Markets, a market access program for agent members; the formation of BIRC, a reinsurance company; and InsurBanc, a bank catering to independent insurance agencies’ needs. He also oversaw the establishment of the Trusted Choice Disaster Relief Fund and COVID-19 Relief Fund for member agencies in need. He recently steered the Big “I” through the challenge of the coronavirus pandemic and also the celebration of the association’s 125th anniversary, according to the association. Symington is currently senior vice president for external, industry and government affairs. He has been with the association since 2004 and oversees federal and state government affairs, political affairs, grassroots, industry relations, and communications and media affairs. Before joining the Big “I,” Symington served as a senior counsel with the U.S. House Committee on Financial Services for three years, focusing on insurance issues. He also worked as a majority counsel for the House Committee on Energy and Commerce specializing in health care policy and oversight, according to the association. Former Aon Exec Joins Gallagher Re in Newly Created Chief Science Officer Role Gallagher Re appointed Steve Bowen to the newly created position of chief science officer within global analytics & advisory. Based in Chicago, Bowen will have a global role, working closely with the new Gallagher Research Centre–Global Catastrophe Analytics, and the climate and environmental, social and governance teams, according to the company. Bowen has a scientific background in meteorology and business analytics, He began his career in broadcast television before transitioning his skills to the insurance industry in 2007. He joined following 15 years at Aon, where he most recently served as managing director and the head of catastrophe insight. In other company news, Gallagher Re named Alexander Choniski in the newly created role of head of embedded insurance, in North America, within its alternative distribution vertical. Choniski will be responsible for creating an embedded insurance solution for clients in North America and he will work in partnership across all parts of the global Gallagher organization, the company said. Choniski has more than 18 years of diverse capital markets and insurance experience. He joins from his most recent role at Swiss Re, where he built and co-ran the strategic partnerships mandate, Swiss Re’s largest insurtech and embedded reinsurance portfolio, according to a company statement. BR Charles Symington Steve Bowen Denis KesslerGET THE BEST PERSPECTIVE FOR NAVIGATING RISK Best’s Financial Strength Ratings • Best’s Issuer Credit Ratings Best’s Issue Credit Ratings • Best’s Rating Evaluation Service Best’s Rating Assessment Service • Best’s Preliminary Credit Assessment Best’s Performance Assessment for Delegated Underwriting Authority Enterprises Our Insight, Your Advantage ™ Learn More: www.ambest.com (908) 439-2200 22.MK132E12BEST’S REVIEW • NOVEMBER 2022 Monthly Insurance Magazine Published by AM Best A.M. BEST COMPANY, INC. Oldwick, NJ CHAIRMAN, PRESIDENT & CEO Arthur Snyder III SENIOR VICE PRESIDENTS Alessandra L. Czarnecki, Thomas J. Plummer GROUP VICE PRESIDENT Lee McDonald A.M. BEST RATING SERVICES, INC. Oldwick, NJ PRESIDENT & CEO Matthew C. Mosher EXECUTIVE VICE PRESIDENT & COO James Gillard EXECUTIVE VICE PRESIDENT & CSO Andrea Keenan SENIOR MANAGING DIRECTORS Edward H. Easop, Stefan W. Holzberger, James F. 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Browne LEAD DESIGNERS Andrew Crespo, Angel Negrón DESIGNERS Amy Herczeg, Barbara Marino, Laura-Ann Russello, Jenica Thomas ONLINE RESOURCES BEST’S REVIEW EDITORIAL CALENDAR: www.bestreview.com/editorialcalendar CONTRIBUTOR AUTHOR GUIDELINES: www.bestreview.com/guidelines REPRINTS AND PERMISSIONS: www.ambest.com/permissions BEST’S REVIEW, Issue 11, November 2022 (ISSN 1527-5914) is published monthly by A.M. Best Company, Inc. Editorial and executive offices: 1 Ambest Road, Oldwick, NJ 08858-9988. A one- year subscription is $75. A two-year subscription is $143. Subscriptions: www.bestreview.com/subscribe. Telephone: +1 908 439 2200. Fax: +1 908 439 3971. Copyright © 2022 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. No portion of this content may be reproduced, distributed, or stored in a database or retrieval system, or transmitted in any form or by any means without the prior written permission of AM Best. While the content was obtained from sources believed to be reliable, its accuracy is not guaranteed. For additional details, refer to our Terms of Use available at AM Best website: www.ambest.com/terms. Articles from outside contributors do not necessarily reflect the opinions of AM Best. When presented herein, Best’s Ratings reflect AM Best’s opinion as to the relative financial strength and performance of each insurer in comparison with others, based on analysis of the information provided to AM Best. However, these ratings are not a warranty of an insurer’s current or future ability to meet its contractual obligations. Printed and bound by Fry Communications, Inc. Made in the USA MASTHEAD Background illustrations on both mastheads are of HMS Victory. To learn more about The Nelson Collection at Lloyd’s, visit www.ambest.com/nelson. FORESTAY13BEST’S REVIEW • NOVEMBER 2022 In the News Regulatory Update David Pilla is a news editor. He can be reached at david.pilla@ambest.com. Rate hike for Citizens in Louisiana and workers’ comp rate changes in Washington and Indiana. Homeowners Insurance: Louisiana Insurance Commissioner Jim Donelon has signed off on a 63% homeowners rate increase for Louisiana Citizens Property Insurance Corp. The bulk of the rate increase is a result of the increased cost of reinsurance for Citizens’ increased number of policies this hurricane season, the department said. Louisiana has been buffeted by insurers swamped with losses, such as United Property & Casualty Insurance Co., which is exiting the state, while others, including Weston Property & Casualty Insurance Co., Southern Fidelity Insurance Co., Lighthouse Property Insurance Co. and several others, have become insolvent. It becomes effective Jan. 1. The increase affects Citizens’ personal lines, including homeowners, dwelling, renters/condo, mobile home and wind-only. Workers’ Comp: The Washington Department of Labor & Industries is proposing a 4.8% increase in the average price employers and workers pay for workers’ compensation insurance next year. If adopted, the increase would mean employers and workers would jointly pay an additional $61 a year on average for each full-time employee within a business. Meanwhile, Indiana just locked in a 10.3% rate cut. Insurance Commissioner Amy Beard agreed to the new average rate reduction recommended by the state Compensation Rating Bureau, she said in a statement. Mutual Miris to Provide Cyber Cover for European Members As a European insurer, Miris said it can only accept members from the European Union and European Economic Area. by David Pilla A Brussels-based mutual insurance company will provide cyberrisk coverage to its members beginning Jan. 1, 2023. The insurer, called Miris, is owned by and operates for its members, the company said in a statement. For the first two years of operation, Miris will allocate up to € 25 million (US$24.3 million) of capacity to each member. The mutual said it will operate in coinsurance with the insurance market, taking the wording and pricing from the market. The minimum attachment point will be € 10 million. Depending on the underwriting performance of Miris, the capacity granted is expected to increase to € 30 million in the third year. Membership in Miris is “predetermined and exclusive,” the company said. It is a “capitalized mutual” and membership is only granted after payment of the capital, which makes it different from commercial mutuals where the payment of premiums confers membership. Prospective members for Miris membership must be screened for their financial strength and cyberrisk management capability, Miris said. Its board of directors then decides whether to submit a membership application to a general meeting of all the members, who then decide whether to accept the new member. All members pay for the initial capitalization and all must participate in the general meeting, Miris said. Each member has one vote at that meeting. All members must maintain an insurance policy at all times during their membership, though new members have a grace period so that their first policy aligns with their annual policy cycle. The first policy begins on Jan. 1, 2023, but individual members’ policies can incept at any time during the year, to reflect the annual renewal date chosen by the member. As a European insurer, Miris said it can only accept members from the European Union and European Economic Area (EU member states plus Iceland, Liechtenstein and Norway). Its license application is for direct insurance, but its Belgium domicile means it can also accept incoming reinsurance where necessary. It can cover the activities of its members worldwide, subject to sanction limitations, through policies issued in Europe. Lloyd’s earlier said it is implementing exclusion requirements in stand-alone cyberattack policies for state-backed cyberattacks beginning March 31, 2023, at the inception or on renewal of each policy. BR Prospective members for Miris membership must be screened for their financial strength and cyberrisk management capability. MirisAt Large 14BEST’S REVIEW • NOVEMBER 2022 By Bill Pieroni Insurers must not derive a false sense of security if claims severities were mitigated amid the COVID-19 era. The Principles of Claims Transformation W e’ve explored claims strategies and the importance of successfully navigating claims transformation. We previously calculated that the value potential of improving personal lines claims performance averaged $44 million per $1 billion of net premiums earned. More recent analysis shows that this potential has declined to $32 million. There are two possible explanations: either low claims performers have caught up to their peers, and/ or claims severity and frequency have recently declined. Unfortunately, the answer is probably not organic improvement in claims capabilities or strategies. The period in question coincides almost exactly with the COVID pandemic era and, more recently, with significant fuel inflation. A material reduction in miles driven obviously reduced total loss cost in auto lines. Claims severities were likewise mitigated in home lines due to the presence of owners and renters on their properties during quarantine and while working from home. These are transient benefits. Insurers must not derive a false sense of security from performance influenced by circumstantial, behavior-based change. The coming months and years will see insureds purchasing more cars, returning to the office and driving more miles—even if the “new normal” still falls short of pre-COVID levels. Insurers who have not developed state-of-the- market claims capabilities will once again fall behind. A further complication is the lack of a robust market for solutions supporting best-in-class claims capabilities. Despite claims consuming about 70 cents of every premium dollar insurers earn, less than 5% of insurtech investment is dedicated to improving the claims process. Insurers cannot solely rely on third parties to drive superior claims performance—they must transform from within. Claims leaders must navigate this transformation according to a set of proven principles. Steps to Take It begins with attracting, developing and Best’s Review columnist Bill Pieroni is president and CEO of ACORD. He can be reached at bestreviewcomment@ambest.com.15BEST’S REVIEW • NOVEMBER 2022 retaining talent with high levels of both skill and will and complementing a strong in-house workforce with preferred third parties. Claims require specialized expertise—even, for instance, experience with a particular model of car or type of roof. Decision-making authority should be co-located with domain knowledge. Just as claims situations are unique, so are insurance organizations. Insurers must gather, screen and refine claims best practices to determine which processes and technologies are most applicable to their particular lines of business, operating geographies and customer segments. They must also manage claims economics through explicit metrics and targets, informed by real-time data. Technology Matters Technology can drive efficiencies in process and organization by enabling the transfer of low- value-added tasks away from those with scarce expertise. Experts should focus on key high-value- added areas. After identifying where those people are most needed, insurers can leverage technology to triage away less-essential tasks and make expertise more available. Finally, data and analytics must be leveraged to support insights at the moment of value, to improve claims handling and customer experience throughout the entire claims process—not analyzed months later. By transforming technology hand-in-hand with process, organization and strategy, insurers can reap the benefits of claims maturity. BR16BEST’S REVIEW • NOVEMBER 2022 By Alex Wells W hat do marijuana, nonstick frying pans and the latest and greatest wireless technology have in common? They can all lead to increased liability exposures for businesses and higher insurance costs. General liability insurance typically protects individuals and businesses from legal damages brought on by claims involving bodily injuries and property damage that result from products, services or operations. As such, liability insurance is subject to the whims of the U.S. legal system and evolving societal views. That’s why, when we talk about emerging hazards, liability risks are always at the forefront. The widespread legalization of cannabis is just one of the emerging risks that is having an impact on general liability claims for insurers and their customers. Let’s take a look at how legal “weed” and other trends are shaping the liability landscape. High Stakes Cannabis use for medical or recreational purposes is now legal in most states. And despite President Joe Biden’s Oct. 6 presidential proclamation that pardoned all people convicted of simple marijuana possession under federal law, the manufacturing, possession, sale or use of marijuana remain—for the moment—federal crimes.The disparity between federal and state cannabis laws can cause issues regarding criminal liability in states where the sale and use of cannabis complies with state law but violates federal statutes. Insurers providing coverage to legal cannabis businesses may be on shaky legal ground if their customers are found to be in violation of stricter federal laws. Legalized pot adds another layer of risk for auto insurers and businesses that operate fleets of vehicles. Police long ago developed tried-and- true methods to determine if a motorist was driving while intoxicated. But what about DWS (driving while stoned)? Both are risky activities that have led to an increased number of accidents. According to the National Highway Transportation Safety Administration, the percentage of fatally injured drivers who tested positive for drugs rose from 25% in 2007 to 42% in 2016, and marijuana presence doubled during that time. The Stickiness of Nonstick It is hard to imagine how prior generations prepared hot meals without nonstick cookware. The ingenuity of this innovation is impossible to Best’s Review contributor Alex Wells is head of U.S. Middle Market, Zurich North America. He can be reached at alex.wells@zurichna.com. Risk Adviser With new innovations come new risks. Here are three emerging hazards that should be on the radar for insurers and their customers. Pot, Pans and the Internet17BEST’S REVIEW • NOVEMBER 2022 ignore for anyone who has had to clean up after dinner. So there has to be a catch, right? The man-made chemicals that make nonstick pans not stick are called per- and polyfluoroalkyl substances. They have been used in the United States since the 1940s, are persistent in the environment and can accumulate in living organisms. There is some evidence that these so-called “forever chemicals” can lead to adverse health effects. It’s not just in cookware. These chemicals have been detected in food packaged in PFAS-containing materials, commercial household products such as stain- and water-repellent fabrics, polishes and other common items. They are also present in worksites, especially production facilities and industrial settings. Thousands of lawsuits dealing with PFAS contamination have been filed in the last decade. High-Speed Risk Something as satisfying as faster wireless connection speeds hardly seems like a cause for concern—unless you have teenagers. But concerns about the negative health impacts of 5G wireless networks have emerged from rumors and misinformation spread on social media—likely on the same high-speed networks blamed for the crisis. It’s not hard to draw parallels to the litigation associated with electromagnetic fields in the 1980s, specifically high-voltage overhead electrical lines. Despite conclusions that EMFs represent no measurable impact to human health, fears have persisted. Today, many believe that radiation emitted by 5G technology may cause cancer, perhaps even weakening the immune system. So far, the evidence supports the idea that mobile phone technologies, including 5G, have no verifiable adverse health impacts. Still, many believe there are health risks associated with 5G. So when perception becomes reality, liability follows. It might be tempting to dismiss the risks of marijuana, nonstick pans and fast internet as unnecessary griping. But the reality for businesses and their insurers is that with each emerging technology comes emerging risk. BRNext >