As we do annually, AIRROC members met at the offices of Norton Rose Fulbright to work on their goals and also to take in some new topics offered by our Education Committee and partner firms.
First up we featured a look at Captives and Emerging Risks. What do Legacy business and captive market transactions have in common? The ability to evaluate and manage the exposures posed by the changing environment is critical and challenging to both. Asbestos is still evolving and companies need focused management to curtail and manage losses. Companies who wish to move captive exposures to a new source of funding must contend with how to evaluate and fund such risks for appropriate disposition.
This panel, led by Jack Vales, a partner with Dentons, described the emerging trends and implications posed by technology, climate change, and demographic change as they relate to existing legacy business and what will no doubt lead to future legacy business. David Geller and Christopher Sirota, both of ISO provided an overview of the emerging risks followed by ISO, which has grown in number to at least 40 and continues to evolve. Lisa Simon, a claims expert and Vice President at Swiss Re, similarly shared her perspective on the every growing list of emerging risks tracked by Swiss Re. The panel then did a deep dive review of five specific emerging risks: Opioids, Supply Chain, Hydraulic Fracking, Talc and Climate Change.
Dentons’ Partner Keith Moskowitz summarized key litigation attributes of the Opioids and Talc emerging risks. Steve McElhiney, President and CEO of EWI Reinsurance, Inc. provided a synopsis of the financial analysis entailed in creative solutions for selling a captive book of business holding emerging risk liabilities and gave an overview of the market in general. Robert Redpath, Senior Vice President and US Legal Director of Enstar, added to the discussion by providing a review of the legal and regulatory consideration of acquiring a captive book.
The next session presented by Jeffrey Grossman and Adam Petitt, from Stradley Ronon Stevens & Young LLP looked at the Civil and Criminal Exposure of Hazing and Antihazing Legislation. As occurrences of hazing leading to injury and death have become more pervasive in our school systems, so has the civil and criminal exposure experienced by students, education institutions, fraternities and other social organizations as a result of these acts. They reviewed in detail individual cases that we have heard about in the media and dissected the civil and criminal liability issues individuals and institutions are facing and how insurance and legislation are responding and impacting the omnipresent practice of hazing. Their presentation generated some strong reactions and opinions from the AIRROC audience leading to an interesting exchange of ideas to wrap it up.
From hazing we moved to a very comprehensive discussion on Clergy Abuse Claims. This information filled session looked at the current state of the claims, changes to the statutes of limitations and the potential impacts to insurers. In this ever-sobering topic the media coverage, bankruptcies of some dioceses’, expanding claims again boarding schools, discovery issues, and increasing involvement from legislatures and localities were all touched on from a legal actuarial and in house perspectives. Panelists Joy Langford and Susan Aldridge from Norton Rose Fulbright, Matthew Killough from Milliman and Katrina McCusker Rusteika from Resolute covered a lot of information in a short period of time.
We ended the day with an interactive and engaging session from Ann Field from Willis Re, Sarah Gordon from Steptoe & Johnson and Stacey Schwartz from Swiss Re. These ladies guided AIRROC audiences through a scenario involving them submitting “votes” to questions using the AIRROC app. Audience answers appeared on the screen and a look at our Unconscious Biases were the result. If you have a brain then you have biases. This discussion had the goal to help us all learn how to recognize our own unconscious biases and how they may affect your decisions.
Presentations from these sessions are all available to attendees on the AIRROC app and to all members on the AIRROC website.