RIMS RiskWorld 2024 addresses key issues facing the industry

As the last few arrivals to the session searched for any remaining seat, Julie Bolton, Vice President of Middle Markets Risk Engineering for Zurich Resilience Solutions, and Japhet Boutin, Senior Vice President of Technical Claims for Zurich North America, took the stage to begin their RIMS RiskWorld education session on navigating workplace disruptions. They began to offer instructions to attendees, who had just learned they were about to participate in an active shooter tabletop exercise. 

The session was part of the RiskWorld annual gathering of insurance and risk professionals, which took place May 5-8 in San Diego. In addition to presenting six education sessions at the conference, Zurich colleagues chatted with visitors to Zurich’s information booth in the RiskWorld Marketplace, hosted several private events, including a regular schedule of cruises around San Diego Bay on the Zurich Team America Yacht, and held numerous meetings with customers and distributors.

The education sessions took on emerging and evolving risks for businesses, some of which are unwelcome scenarios, but nonetheless require preparation and resilience.  

When we finished the presentation, nobody moved,” Boutin said. “Several people told me that the only way to improve this session was to make it longer, while others asked when the notes from the report-out would be available.&rdquo

Bolton, meanwhile, compared the need for active shooter drills in the workplace with those regularly conducted in U.S. schools. “Our kids do it in school,” she said. “They drill and they drill, until it becomes second nature, and adults need to do the same.

Bolton and Boutin were two of the seven Zurich colleagues who presented education sessions that engaged risk managers and other RIMS attendees from businesses coast to coast. This year's conference drew 10,000 attendees from 70 countries and featured more than 300 speakers presenting on a wide range of risk management topics. Educational tracks focused on Claims Management; Cyber and Technology; Loss Control; Environmental, Social and Governance (ESG); and Career Development with a new track offered at this year’s conference: Artificial Intelligence (AI).

Allen Kirsh, Head of Claims Judicial and Legislative Affairs for Zurich North America, led a session with Nicholas Sagez, Vice President of Risk Management for Bowlero Corp. “Anatomy of a nuclear verdict” covered the growing risks associated with legal system abuse and rising jury awards that are fueling what is known as “social inflation” and contributing to rising claim costs that can impact insurance premiums. Key drivers of social inflation include corporate mistrust, reptile theory tactics by plaintiff’s attorneys, economic inflation and erosions in tort reform, Kirsh said.

Legal system abuse is costing the U.S. economy billions of dollars in lost economic output and federal, state and local tax revenue each year, Kirsh said. He outlined steps Zurich and others in the insurance industry are taking to combat social inflation, which include collaborating on lawsuit abuse reform efforts and creating a dedicated social inflation task force within Zurich North America Claims.

In another session, Francisco Zicari, recently named Head of International Programs for Latin America & Partners, highlighted dynamics and considerations for businesses interested in exploring nearshoring various operations in Latin America. Factors contributing to the interest in nearshoring include proximity and accessibility to the U.S., improvements in trade conditions and record foreign investments in Mexico and other Latin American countries

Zicari addressed the cultural nuances of doing business in Latin America, emphasizing the importance of “beginning business with pleasantries like, ‘How are you?’ and ‘How is your day?’” He cautioned against being as direct as may be customary for some in the U.S. This must be balanced with being clear if there is “a crucial time element” to a business undertaking; time is sometimes viewed as being more fluid in Latin America, Zicari said.

In the session “Safeguarding business continuity in an era of geopolitical turbulence and civil unrest,” Andrea Blair, Director of Business Resiliency and Continuity Management for ZRS, pointed out that the risk landscape continues to change. She advised companies think beyond traditional risks like flood and fire to more complex risks, such as geopolitical conflict and civil unrest, particularly in the international space.

Blair recommended companies adopt a “plus one” supplier strategy, where they identify a backup supplier before it’s needed, to lessen the potential impact of supply chain issues. She also stressed the importance of establishing relationships with local service providers ahead of time so that “when, not if” something happens, there is someone who can serve as a “boots on the ground” resource, even for something as seemingly simple — but critical — as knowing how to shut off gas or power to a facility.

On another topic, Elise White, Director of Workforce Resilience Services for ZRS, was joined by Professor Steven Haynes from the University of Texas Dallas to present the findings of a Zurich-commissioned study that identified the important role inclusivity and empathy play in influencing positive workers compensation outcomes. White said that evolving workplace demographics are shifting the expectations that employees have of employers. Baby Boomers, for instance, reported loyalty was something they valued in an employer, while Millennials and Gen Z employees greatly value employers that pay attention to the wellbeing and mental health of their employees.

“Millennials and Gen Z feel the least psychologically safe at work today,” White said, citing that the groups reported a shared common fear: that any mistakes they make will be held against them. She said that changing workplace demographics may require employers to adjust their approaches to meet the needs of various employees.

In the session “Beyond next steps: Moving DEI forward in challenging times,” Jeff Gallimore, U.S. National Accounts Chief Operations Officer at Zurich North America, joined Dr. Leroy Nunery, Founder and Principal of PlūsUltré LLC, to share the findings from the “Next steps” DEI study, which shed light on the landscape of DEI efforts from 2018 to 2022. Despite heightened awareness due to factors like COVID, protests following the murder of George Floyd and the Great Resignation, the findings showed a lack of progress in DEI initiatives.

Gallimore said the conversation around DEI should center on actionable change and recommended risk managers “focus on a few key initiatives and do them well” rather than trying to do everything at once. He said that risk managers can overcome misconceptions in their organizations by promoting openness and education about DEI and the business value of fostering a more inclusive work environment.

During RIMS, Zurich leaders also met with several members of the media in attendance, resulting in news articles and video interviews that included:

• Zurich North America CEO Kristof Terryn spoke with AM Best TV, where he discussed how litigation abuse continues to be the main driver of the P/C market.
• Zurich North America Chief Claims Officer Keith Daly spoke with Insurance Insider, where he discussed a “really active” first quarter for convective storms.
• Zurich North America Head of National Accounts Paul Lavelle spoke with AM Best TV, where he discussed how auto insurance claims have surpassed pre-pandemic levels.
•  Zurich Resilience Solutions Head of Sustainability Services Lisa Leftwich spoke with Carrier Management, where she discussed how Zurich Resilience Solutions is helping customers become more sustainable.

RIMS RiskWorld will celebrate its 75^th anniversary next year. The 2025 RIMS RiskWorld gathering is scheduled for May 4-7 in Chicago.