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DATA & RANKINGS BI's exclusive rankings - of industry players and more
CYBER: Risk managers, insurers mull need for backstop to cover big data breaches - PAGE 5

                                                                              JANUARY 2023

                                                      DATA &
                                                     RANKINGS
                                                          BI’s exclusive rankings
                                                      of industry players and more
                                                                  PAGE 16
DATA & RANKINGS BI's exclusive rankings - of industry players and more
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DATA & RANKINGS BI's exclusive rankings - of industry players and more
PRESIDENT
Steve Acunto
(Greenwich)
sa@businessinsurance.com
                                                                                                                                                                                   DATA &
CHIEF OPERATING OFFICER
Stephen Acunto
(Princeton)
                                                                                                                                                                                   RANKINGS
stephen@businessinsurance.com                                                                                                                                                      The annual data issue of
                                                                                                                                                                                   Business Insurance provides
PUBLISHER
Keith Kenner                                                                                                                                                                       highlights from our proprietary
(Chicago)                                                                                                                                                                          research released over the
kkenner@businessinsurance.com
                                                                                                                                                                                   past year and other rankings.
EDITOR
                                                                                                                                                                                   Included are broker, captive,
Gavin Souter
(Chicago)                                                                                                                                                                          surplus lines and third-party
gsouter@businessinsurance.com                                                                                                                                                      administrator rankings, as
DEPUTY EDITOR                                                                                                                                                                      well as rankings of specialty
Claire Wilkinson
(New York)
                                                                                                                                                                                   segments such as cyber risk
cwilkinson@businessinsurance.com                                                                                                                                                   and medical malpractice
ASSISTANT EDITOR                                                                                                                                                                   insurers. PAGE 16
Louise Esola
(New Orleans)
lesola@businessinsurance.com

NEWS EDITOR
John Obrecht
(Chicago)
jobrecht@businessinsurance.com
                                                        INSIDE
SENIOR REPORTER
Judy Greenwald                                                                                                                                   CYBER BACKSTOP
(San Jose)                                                                                                                                       While RIMS strongly endorses a federal cyber insurance
jgreenwald@businessinsurance.com
                                                                                                                                                 backstop, other groups say more study is needed. PAGE 5
REPORTER
Jon Campisi
(Philadelphia)                                                                                                                                   WORKER RECLASSIFICATION
jcampisi@businessinsurance.com
                                                                                                                                                 A U.S. Department of Labor proposal could put more
REPORTER
Matthew Lerner
                                                                                                          NEWS ANALYSIS                          independent contractors in the employee category. PAGE 7
(New York)
                                                                                                         FOR BREAKING NEWS
mlerner@businessinsurance.com                                                                                                                    DATA PRIVACY
                                                                                                           COVERAGE, VISIT
COPY EDITOR                                                                                                                                      Privacy laws taking effect this year in five states
Brian Gaynor                                                                                            businessinsurance.com
(Portland)
                                                                                                                                                 expand employers’ data liability. PAGE 9
bgaynor@businessinsurance.com

ART DIRECTOR                                                                                                                                     OSHA CHALLENGES
Jeremy Werling                                                                                                                                   A decline in the ranks of OSHA inspectors is hampering the
(Cincinnati)
jwerling@businessinsurance.com                                                                                                                   agency’s enforcement operations, observers say. PAGE 11
DIRECTOR OF RESEARCH,
PLANNING AND INSIGHTS                                                                                                                            INTERNATIONAL
Andy Toh
(Chicago)                                                                                                                                        The Botswana insurance market is highly competitive,
atoh@businessinsurance.com                                                                                                                       with almost all premium rates under pressure. PAGE 12
MAJOR ACCOUNTS DIRECTOR -
NORTHEASTERN U.S. & INTERNATIONAL
Ron Kolgraf
(Boston)
rkolgraf@businessinsurance.com

HEAD OF EVENT SALES,
                                                                                                                                                        VIEW FROM
REPRINTS & LICENSING
Susan Stilwill
                                                                                                                                                          THE TOP
(Nashville)
sstilwill@businessinsurance.com

VICE PRESIDENT OF MARKETING                                                                                                                      ALEX SUN
Brian McGann
(Buffalo)                                                                                                OFF BEAT                                Alex Sun became CEO
bmcgann@businessinsurance.com                                                                            Who says companies                      of San Diego-based
VICE PRESIDENT OF DIGITAL                                                                                don’t have the right to                 Enlyte LLC in 2021,
MARKETING/COMMUNICATIONS                                                                                                                         when it was formed
Jen Jonasson
                                                                                                         fire workers who fail to
(Chicago)                                                                                                be sufficiently “fun”?                  through the merger of
jjonasson@businessinsurance.com                                                                                                                  three companies in the
                                                                                                         PAGE 29
DIGITAL AD OPERATIONS MANAGER
                                            LEGAL BRIEFS                                                                                         workers compensation
Zeina Alwafai                               Recent court opinions PAGE 13                                                                        sector: Coventry
(Memphis)
zalwafai@businessinsurance.com                                                                                                                   Workers Comp
                                            MARKET PULSE                                                                                         Services, Genex Services LLC and Mitchell International
DIRECTOR, CONFERENCES & EVENTS
Brittany Collins
                                            Products, deals and more PAGE 27                                                                     Inc. Mr. Sun was formerly CEO of Mitchell, and prior to that
(Lafayette)
                                                                                                                                                 he spent a decade in the banking and financial services
bcollins@businessinsurance.com
                                            PEOPLE                                                                                               industry. He discusses the benefits of the merger and
MARKETING COORDINATOR                       Insurance industry moves PAGE 28
Jessica Evangelista                                                                                                                              challenges in the workers compensation arena. PAGE 15
(Washington)
jevangelista@businessinsurance.com
                                     BUSINESS INSURANCE (ISSN 0007-6864) Vol. 57, No. 1, Copyright © 2023 by Business Insurance Holdings, Inc. is published monthly by Business Insurance Holdings, Inc., 1030 Lake Avenue,
SUBSCRIPTIONS & SINGLE COPY SALES    Greenwich, CT 06831. Accounting, business, circulation and editorial offices: PO Box 1010, Greenwich, CT 06836. Email businessinsurance@omeda.com to subscribe or for customer service.
businessinsurance@omeda.com          Periodicals postage is paid at Greenwich, CT. Printed in the USA. POSTMASTER: Send address changes to Business Insurance, PO Box 260, Lincolnshire, IL 60669.

                                                                                                                                                            BUSINESS INSURANCE                       JANUARY 2023              3
DATA & RANKINGS BI's exclusive rankings - of industry players and more
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DATA & RANKINGS BI's exclusive rankings - of industry players and more
NEWS ANALYSIS

Insurers weigh need for federal cyber backstop
       BY MATTHEW LERNER                                                                                                                          Rice and was involved in drafting the
    mlerner@businessinsurance.com                                                                                                                 Homeland Security Act after 9/11.
                                                                                                                                                    He suggested the Terrorism Risk

T
    he biggest U.S. risk management                                                                                                               Insurance Act of 2002, which provided
    organization supports the creation                                                                                                            federal reinsurance coverage for insurers
    of a federal cyber insurance backstop,                                                                                                        providing property/casualty coverage,
but several prominent insurer groups say                                                                                                          could serve as a reference point because
more time is needed to determine wheth-                                                                                                           the language of the law has survived five
er government support is needed.                                                                                                                  reauthorizations and the program was
  Proponents of federal support for the                                                                                                           successful in achieving its goal of stabi-
market say the terrorism backstop formed                                                                                                          lizing property markets after the attacks.
after the Sept. 11, 2001, terrorism attacks                                                                                                       The trigger for TRIA coverage began at
could serve as a basic model for a cyber                                                                                                          $50 billion and rose to $200 billion at its
backstop, but factors such as funding                                                                                                             most recent reauthorization, in 2019.
and the structure of coverage need to be                                                                                                            Lynn Haley Pilarski, chair of RIMS’
addressed.                                                                                                                                        external affairs committee and senior risk
  The discussions come after a surge in                                                                                                           manager at General Motors Co., said
ransomware-related cyber liability insur-                                                                                                         TRIA fulfilled its mandate of stabilizing
ance claims over the past two years and                                                                                                           commercial property insurance markets
huge increases in the cost of coverage.                                                                                                           in the wake of the 9/11 devastation and
  In November, the Risk & Insurance              Casualty Insurance Association, the of Insurance Commissioners report on that “risk managers are always looking for
Management Society Inc. sent a com-              Council of Insurance Agents and Bro- cyber insurance, and “reinsurance is read- ways to improve coverage terms, increase
ment letter to the U.S. Treasury Depart-         kers, CyberAcuView — a cyber insurance ily available and new carriers continue to capacity and stabilize insurance markets.”
ment’s Federal Insurance Office saying           group — and the Wholesale & Specialty enter the market,” the letter said.                          Both Mr. Cunningham and Ms. Pilarski
its members “overwhelmingly supported”           Insurance Association sent a joint letter to        The letter acknowledged that “a study said attention should be paid to the defi-
the creation of a federal cyber insurance        Steven E. Seitz, director of the FIO, say- on the potential impacts of protection nition of war in any backstop, especially
backstop.                                        ing that it was too early to assess whether gaps, and whether and to what extent as it pertains to coverage language and
                                                 a federal backstop was needed.                     gaps exist, will be helpful,” and called the exclusions. The definition should not be so
“We believe the federal government                 The letter said the insurance industry, review process “a unique opportunity to broad as to allow overly broad or restrictive
                                                 business community and government have proactively evaluate and discuss how the exclusionary coverage language, they said.
should invest in cyber-risk                      shared interests in encouraging stronger federal government could assist through                   Dale Porfilio, chief insurance officer
                                                 cybersecurity and preventing cyberattacks public-private partnership, if eventually for the Insurance Information Institute
mitigation of national and                       and cybercrime but added the cyber insur- needed.”                                               in New York, said the organization
                                                 ance market is “nascent” and more time is           Bryan Cunningham, executive director “considers cyber to be one of the most
community infrastructure as well as              needed to determine “whether a federal of the Cybersecurity Policy & Research significant risks facing society and the
preventing cyberattacks by nation                response is appropriate.”                          Institute at the University of California, insurance industry, and is concerned
                                                   “Historically, federal insurance respons- Irvine, said in an interview he supports about a catastrophic cyber event on the
states and terrorist groups.”                    es have been constructed when there has some role for the federal government in scale of natural catastrophes like hurri-
                                                 been clear evidence of a market failure the management of catastrophic cyber canes and earthquakes.” He said events
Dale Porfilio, Insurance Information Institute   within a specific peril or line that led to exposures. “I think we have to have that,” such as the Colonial Pipeline shutdown
                                                 deleterious impacts. This is not the sce- he said. Details of the thresholds, funding in 2021, in which an energy provider was
                                                 nario for the cyber insurance market,” the and other considerations are “yet to be hit by a ransomware attack, showed the
  The letter was in response to a Sept.          letter stated.                                     determined, but it should be there,” he said. potential risk for “bad actors or nation
29 notice from the Treasury seeking                The current market is expected to dou-            Mr. Cunningham served as deputy states to attack major infrastructure like
comments “on questions related to                ble in size every three years, according national security adviser in the George W. the U.S. power grid.”
cyber insurance and catastrophic cyber           to the most recent National Association Bush administration under Condoleezza                      A significant attack on infrastructure
incidents.” The initial deadline to sub-                                                                                                          “could far exceed current private market
mit comments was Nov. 14, which was              PREMIUM CHANGE FOR CYBER (Q4 2016-Q3 2022)                                                       cyber coverage,” Mr. Porfilio said. “We
extended to Dec. 15.                              37.5%
                                                                                                                                                  believe the federal government should
  “Cyber insurance is a significant                                                                                               34.3%           invest in cyber-risk mitigation of national
risk-transfer mechanism, and the insur-           32.5%                                                                                           and community infrastructure as well as
ance industry has an important role to play       27.5%
                                                                                                                          25.5%                   preventing cyberattacks by nation states
in strengthening cyber hygiene and build-                                                                                                         and terrorist groups.”
                                                  22.5%
ing resiliency,” the Treasury notice said.                                                                                                          Mr. Porfilio said “the potential benefit
  The notice followed a June report from          17.5%                                                                                     20.3%
                                                                                                                                                  of a federal cyber insurance program like
the Government Accountability Office                                                                                                              TRIA depends greatly on how it is struc-
                                                  12.5%                                                         7.7%
recommending that FIO and the Depart-                                                                                                             tured and funded. We would not want it
ment of Homeland Security’s Cybersecu-             7.5%                                                 4.4%                                      to replace or inhibit growth of the private
rity and Infrastructure Security Agency            2.5%                            0.4%        1.2%                                               cyber insurance and reinsurance market.”
conduct a joint assessment to determine                                                                                                             A program like TRIA could be ben-
“the extent to which risks to critical infra-     -2.5%                                                                                           eficial if it provided “umbrella coverage
                                                                   -1.4%
structure from catastrophic cyber incidents       -7.5%                                                                                           above the private market without adding
and potential financial exposures warrant a                                                                                                       undue cost or administrative burdens for
                                                        Q4 16
                                                                Q1 17
                                                                        Q2 17
                                                                                Q3 17
                                                                                        Q4 17
                                                                                                Q1 18
                                                                                                        Q2 18
                                                                                                                Q3 18
                                                                                                                        Q4 18
                                                                                                                                Q1 19
                                                                                                                                        Q2 19
                                                                                                                                                Q3 19
                                                                                                                                                        Q4 19
                                                                                                                                                                Q1 20
                                                                                                                                                                        Q2 20
                                                                                                                                                                                Q3 20
                                                                                                                                                                                        Q4 20
                                                                                                                                                                                                Q1 21
                                                                                                                                                                                                        Q2 21
                                                                                                                                                                                                                Q3 21
                                                                                                                                                                                                                        Q4 21
                                                                                                                                                                                                                                Q1 22
                                                                                                                                                                                                                                        Q2 22
                                                                                                                                                                                                                                                Q3 22

federal insurance response.”                                                                                                                      policyholders and insurance carriers,” Mr.
  Last month, the American Property              Source: Council of Insurance Agents & Brokers                                                    Porfilio said.

                                                                                                                                                                                                                                                 BUSINESS INSURANCE   JANUARY 2023   5
DATA & RANKINGS BI's exclusive rankings - of industry players and more
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DATA & RANKINGS BI's exclusive rankings - of industry players and more
NEWS ANALYSIS

       Gig worker proposal could raise comp costs
          BY LOUISE ESOLA                                                                                                                           they are classifying their workers in line
    lesola@businessinsurance.com                                                                                                                    with current state regulations, which have
                                                                                                                                                    shifted in some cases.

A
     U.S. Department of Labor proposal                                                                                                                California has tightened rules on who
     that could put more independent con-                                                                                                           is considered an employee, and Vermont
     tractors in the employee category has                                                                                                          and Rhode Island considered measures
the potential to shake up business models,                                                                                                          in 2022 that would have changed the
workers compensation experts say.                                                                                                                   definition. More states could continue
  “This can be a really big deal, especially                                                                                                        to push for clarification on the issue,
in the gig, shared economy,” said Ben                                                                                                               the National Council on Compensation
Powers, Atlanta-based executive vice                                                                                                                Insurance reported, naming the issue a
president and head of large and complex                                                                                                             major legislative trend.
casualty for the Southeast region at Willis
Towers Watson PLC.
  “O verall, the employee/employer
                                                                                                                                                    “There is a fine and sometimes
relationship versus that principal/inde-
pendent contractor relationship impacts
                                                                                                                                                    difficult-to-discern line
our clients in a lot of big ways,” as workers                                                                                                       between employee status and
compensation coverage would be among
the largest mandated insurance require-                                                                                                             independent contractor.”
ments for companies forced to reclassify        nomics of their business model,” said Will       he said. “Each state, and in some cases            Will Brauer, Marsh LLC
workers, he said.                               Brauer, Marsh LLC’s sharing economy              municipality, define these requirements
  The DOL’s proposed rule, introduced           and mobility casualty leader in Chicago.         differently, but most have some common
Oct. 13 and closed to public comment on           “There is a fine and sometimes diffi-          elements.”
Dec. 13, would apply a narrow “economic         cult-to-discern line between employee              While many companies that rely on                  According to the NCCI, three states
realities test” to determine whether a          status and independent contractor,”              independent contractors have general lia-          passed laws in 2022 affecting gig workers.
worker is an independent contractor.                                                             bility policies to protect assets in the event       S.B. 150 in Alabama excluded certain
It would assess six conditions to deter-        FATAL OCCUPATIONAL                               of a contractor injury — if the worker             contractors working for marketplace
mine whether workers are economically           INJURIES                                         alleges and can prove negligence on behalf         platforms, such as Uber and food delivery
dependent on employers or are in busi-                                                           of the company — workers compensation              platform Grubhub, from the definition of
                                                Self-employed workers, which include
ness for themselves.                            independent contractors, represented             is a wider net, a guarantee of benefits in         employee and deemed them independent
  The DOL has stated its intention to           17% of fatal occupational injuries in            most cases, and would increase insurance           contractors. H.B. 118 in South Dakota
rein in companies that rely heavily on          2021. The latest data, released last             costs dramatically, said Paul Primavera,           clarified when a worker is an indepen-
independent contractors, who lack access        month, showed numbers in line with the           Washington-based executive vice pres-              dent contractor of a delivery facilitation
to such protections as workers compen-          four previous years, when between 900            ident and practice leader, national risk           platform, and H.B. 2076 in Washington
sation and wage and hour laws. A DOL            and 1,093 self-employed workers died             control group, at Lockton Cos. LLC.                addressed workers compensation cover-
official recently named the independent         as a result of occupational injuries:              Conversely, the risk could be greater            age for transportation network company
contractors issue among the top troubling                                                        under general liability, as workers comp is        drivers under certain conditions.
                                                       5,190           Total workplace deaths
comp trends (see related story).                                                                 the exclusive remedy and is safeguarded by           Hanging over the issue is the DOL’s
  Comp experts say that, depending on                   906            Self-employed workers     regulations, he said.                              proposal, experts say.
the type of company, a move to reclassify                                                          “Certainly one could argue that a                  “This is a key issue to continue to
independent contractors as employees                                                             third-party claim could result in more             watch,” said Greg McKenna, Rolling
would force many businesses to rebalance                                                         exposure to an organization than a work-           Meadows, Illinois-based national practice
their risk profile.                                    4,284           Wage and salary workers   ers compensation claim simply because              leader for the public sector at Gallagher
  If the proposed rule “forces employers                                                         there are no limits on wages and pain and          Bassett Services Inc. “It would be good
to reclassify independent contractors as                                                         suffering,” he said.                               advice for employers to continue to see
employees, there is a significant effect on                                                        With potential federal changes looming,          how the federal government is going to
workers comp and on the overall eco-            Source: U.S. Bureau of Labor Statistics          experts say companies also need to ensure          take action on this.”

   WORKER MISCLASSIFICATION AMONG ‘TROUBLING’ TRENDS IN INSURANCE INDUSTRY

  W      orkers misclassified as independent
         contractors, reductions in benefits,
         and states looking to make workers
  compensation protections optional
  for employers are three “troubling”
                                                 the National Academy of Social Insurance,
                                                 wrote that the number of U.S. workers
                                                 covered by workers compensation
                                                 has decreased and that workers
                                                 misclassified as independent contractors
                                                                                                 states,” he wrote, adding that COVID-19
                                                                                                 “was a big factor in this decline,
                                                                                                 but total benefits paid was already
                                                                                                 decreasing in 21 states pre-pandemic.”
                                                                                                   He described declining benefits as
                                                                                                                                                  make workers compensation optional.
                                                                                                                                                    South Dakota, Texas and Wyoming have
                                                                                                                                                  already made workers compensation
                                                                                                                                                  fully or partially optional for at least
                                                                                                                                                  some occupations, Mr. Godfrey wrote,
  trends for the insurance industry, a U.S.      “continue to lack the economic                  a decades-long trend stemming from               adding that “in the last decade, legislative
  Department of Labor official wrote in a        security” of workplace protections.             several factors, including changes to state      proposals in Arkansas, Oklahoma,
  recent blog post on the agency’s website.        Another issue, Mr. Godfrey wrote in the       workers compensation laws and policies.          South Carolina and Tennessee proposed
    Christopher Godfrey, director of the         Nov. 18 post, is that most states are paying      “Today, there are considerable                 alternative workers compensation
  DOL’s Office of Workers’ Compensation          fewer total benefits to injured workers.        cross-state differences in benefits              schemes or options for employers to
  Programs and a member of the Study               “From 2016-2020, total benefits paid          for injured workers,” he wrote.                  opt out” of coverage for workers.
  Panel on Workers’ Compensation Data at         to injured workers decreased in 40                Another trend is states working to                                               Louise Esola

                                                                                                                                           BUSINESS INSURANCE                JANUARY 2023          7
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NEWS ANALYSIS

          States expand data liability for employers
        BY JUDY GREENWALD
  jgreenwald@businessinsurance.com
                                                                                                                                                        CALIFORNIA
                                                                                                                                                        PRIVACY LAW

A                                                                                                                                                       TAKES EFFECT
    privacy law that took effect in Califor-
    nia on Jan. 1 is one of five such laws that
    have taken effect, or are scheduled to,
in various states this year that will tighten
regulation of online data.
  Virginia’s law also went into effect at the
                                                                                                                                                        T    he California Privacy Rights
                                                                                                                                                             Act, which was approved
                                                                                                                                                             by voters in a November
                                                                                                                                                        2020 ballot measure and went
start of the year; those in Colorado, Con-                                                                                                              into effect on Jan. 1 of this year,
necticut and Utah will become effective                                                                                                                 amends the California Consumer
later in the year.                                                                                                                                      Privacy Act of 2018 and retains
  More states are expected to pass similar                                                                                                              many of its provisions while
legislation, as the issue of consumer privacy                                                                                                           adding new requirements.
garners more attention.                                                                                                                                   The California Privacy
  The California Privacy Rights Act, which                                                                                                              Rights Act:
was approved by voters in a 2020 ballot
                                                                                                                                                          Extends
                                                                                                                                                        n	          the earlier
measure, amends the California Consumer
                                                                                                                                                            law’s consumer privacy
Privacy Act, which took effect Jan. 1, 2020.
                                                                                                                                                            rights to employees,
  Like the earlier act, which was influenced
                                                                                                                                                            job applicants and
by the European Union’s 2018 General
                                                                                                                                                            independent contractors.
Data Protection Regulation, the new law           ply with the law, said Brian McGinnis, a             Dan Burke, San Francisco-based national
grants consumers a private right of action if     partner with Barnes & Thornburg LLP in             cyber practice leader for Woodruff Sawyer            Gives
                                                                                                                                                        n	       consumers and
there is a data breach.                           Indianapolis.                                      & Co., said, “It’s hard to say if others will go       employees the right to know
  But it expands on the earlier law by              “It is highly likely, if not certain that even   as far as California, but certainly, we’ll have        the personal information
including protections for employees, job          companies that have done a lot of work with        some more comprehensive consumer pri-                  a business has collected,
applicants and independent contractors.           the CCPA still have work to do,” said Odia         vacy laws” in more states in the near future.          correct or delete it, and
  The law also eliminates a 30-day period         Kagan, a partner with Fox & Rothschild               “Obviously, many U.S. businesses have                opt out of its sale.
permitting companies to “cure” violations         LLP in Philadelphia.                               connections to California, so they have to           Applies
                                                                                                                                                        n	          to businesses to
before government enforcement actions               Sean P. Nalty, a shareholder with Ogletree,      cope with the California statute, and so,              which any of the following
are taken.                                        Deakins, Nash, Smoak & Stewart P.C. in             unless the Congress surprises us and there             apply: report more than
  The California Privacy Protection Agen-         San Francisco, said employers may face             is a national privacy law, California’s will           $25 million in gross revenue;
cy, which was created by the 2020 law,            more legal issues because of the new law’s         remain the most stringent,” said Jarno                 alone or in combination;
will enforce the new law. The California          applicability to employees, “particularly if       Vanto, a partner with King & Spalding LLP              buy, receive, sell or share
attorney general still retains enforcement        disgruntled employees were to try to use the       in New York.                                           for commercial purposes
powers, too.                                      law” to frustrate their employers.                   Within a few years more states will adopt            personal information of at
  The law applies to organizations with at          “But if you put a good procedure in place        privacy controls, and even states whose                least 100,000 consumers,
least $25 million in annual gross revenue,        and train your people appropriately, by and        impending laws are now milder than Cal-                households or devices in
those that deal in the personal data or           large it will be something that employers          ifornia’s will eventually make theirs more             the state; derives at least
information of 100,000 or more California         will be able to comply with,” he said.             stringent, said Joshua Gold, a shareholder             50% of its annual revenue
                                                                                                     with Anderson Kill P.C. in New York.                   from selling consumers’
“Obviously, many U.S. businesses have connections to California, so they have to                       Employers will have coverage available
                                                                                                     for liabilities that arise under cyber liability
                                                                                                                                                            personal information. It
                                                                                                                                                            does not include nonprofits
cope with the California statute, and so, unless the Congress surprises us and there                 insurance policies, experts say.
                                                                                                       However, Tamara Snowdon, New York-
                                                                                                                                                            or government entities.
                                                                                                                                                          Applies   to business-to-
is a national privacy law, California’s will remain the most stringent.”                             based senior vice president and cyber
                                                                                                                                                        n	
                                                                                                                                                            business transactions.
                                                                                                     coverage leader for Marsh LLC’s U.S.
Jarno Vanto, King & Spalding LLP                                                                                                                          Requires
                                                                                                                                                        n	           businesses that
                                                                                                     and Canada cyber practice, said that while
                                                                                                     cyber policies provide “robust coverage” for           collect personal information
                                                                                                     data breaches and disclosure of sensitive              to disclose it and inform
residents, or those that derive at least 50%        Experts predict there will be more               personal information, coverage for privacy             individuals whether the
of their annual revenue from selling con-         enforcement than under the earlier law             issues really depends on clients’ negotiating          information is sold or shared.
sumers’ personal information.                     because that function will be led by a ded-        power and the level of sophistication they           Government
                                                                                                                                                        n	              enforcement
  Enforcement of its provisions is slated to      icated agency.                                     can demonstrate.                                       is to begin July 1.
begin July 1, but experts warn companies            Initially, enforcement will likely focus           Coverage varies, said Deborah Hirschorn,           Eliminates
                                                                                                                                                        n	            the CCPA’s
may still be found liable for failure to          on data brokers that collect large amounts         Kansas City, Missouri-based managing                   30-day “cure” period to
comply with its requirements before the           of information and use it for commercial           director for U.S. cyber and technology                 address violations before
implementation date.                              purposes before expanding to egregious             errors and omissions claims at Lockton Cos.            government enforcement
  The measure in California is “a bit closer      violations by other organizations and those        LLC. “Some (policy) forms are very broad               actions are taken.
to what we see in Europe with the GDPR,”          “who do nothing at all or window dressing,”        and talk about managing and controlling
                                                                                                                                                          Only
                                                                                                                                                        n	      provides individuals
said Jenny L. Holmes, counsel with Nixon          said Philip L. Gordon, a shareholder with          personal information,” she said. Others’
                                                                                                                                                            with a “private right
Peabody in Rochester, New York.                   Littler Mendelson P.C. in Denver.                  policy language is stricter.
                                                                                                                                                            of action” to sue in
  Companies should analyze the personal             Experts predict additional states will             Furthermore, “it is yet to be determined”
                                                                                                                                                            data breach cases.
information they have collected and update        adopt similar laws, although they will not         whether fines under privacy laws, including
or adopt policies and procedures to com-          necessarily be as restrictive as California’s.     GDPR, are insurable, Ms. Hirschorn said.           Source: Attorney analyses

                                                                                                                                           BUSINESS INSURANCE          JANUARY 2023      9
DATA & RANKINGS BI's exclusive rankings - of industry players and more
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NEWS ANALYSIS

  Decline in number of inspectors hampers OSHA
          BY LOUISE ESOLA                                                                                                                        “There has been a major brain drain in
    lesola@businessinsurance.com                                                                                                               the past few years caused by the retirement
                                                                                                                                               of many seasoned inspectors,” Melissa

P
    andemic workplace safety duties cou-                                                                                                       Peters, Walnut Creek, California-based
    pled with a steady drop in the number                                                                                                      shareholder with Littler Mendelson,
    of Occupational Safety and Health                                                                                                          wrote in an email. “Certified safety and
Administration inspectors since 2014 have                                                                                                      health officers who were considering
challenged the agency, legal experts say.                                                                                                      retiring early were likely pushed to do so
  “It’s objectively true that OSHA has                                                                                                         after the pandemic. I imagine the pressure
been shrinking, and the staff has been                                                                                                         placed on inspectors since 2020 … has
shrinking year over year for a while —                                                                                                         been enormous.”
really going back to the (2013) seques-                                                                                                          “Like any profession, it takes time for an
tration and some government shutdowns                                                                                                          inspector to know what they are doing,”
during the Obama administration,” said                                                                                                         Ms. Peters wrote. “Even OSHA offices
Eric Conn, Washington-based founding                                                                                                           that have hired inspectors likely won’t
partner of Conn Maciel Carey LLP.                                                                                                              feel relief for several years. The increase
  Mr. Conn referred to a Dec. 13 report by                                                                                                     in employee awareness of safety in the
the U.S. Department of Labor’s Office of                                                                                                       workplace since the pandemic is chal-
Inspector General on the department’s top                                                                                                      lenging. An increase in complaints means
management and performance challenges                                                                                                          more site inspections. One inspector can
that found the decline in inspectors from        The OIG report also found that OSHA          California, office.                              accomplish only so much in one day.”
a high of 860 in 2014 to 750 in 2021 had       has been challenged in protecting work-          “It takes a new administration some time         And inexperienced inspectors can
made it difficult for OSHA to protect          ers who report potential worksite safety       to shape itself,” she said. “And with the pan-   introduce more problems for employers
workers at an estimated 8 million worksites.   violations due to failure in some cases to     demic… I think that hinders their ability to     facing inspections, according to Adam
  The annual report followed one in            complete subsequent whistleblower inves-       really go out and do a lot of enforcement.”      Young, Chicago-based partner at Seyfarth
November in which the OIG said OSHA            tigations within the statutory requirement       The latest report noted that it can take       Shaw LLP.
“did not sufficiently protect workers          of 30, 60 or 90 days.                          up to five years for an inspector to be            “For employers, OSHA’s staffing con-
from COVID-19 health hazards” during             “The pandemic caused a significant           fully trained and that more money in the         cerns and use of new compliance officers
the pandemic.                                  increase in the number of whistleblower        agency’s budget in 2022 did not correct          often mean that the compliance officer
  Jessica E. Martinez, Los Angeles-based       complaints OSHA received, while the            the issue.                                       conducting the inspection does not have
co-executive director of the National          number of full-time equivalent (FTE)
Council for Occupational Safety and
Health, said there “is an urgent need for
                                               employees, including inspectors within
                                               OSHA’s W histleblower Protection
                                                                                              “There has been a major brain drain in the past few years
OSHA to add more inspectors, more
whistleblower investigators and more
                                               Program, decreased,” the report said.
                                               During the early months of the pandemic,
                                                                                              caused by the retirement of many seasoned inspectors.”
staff throughout the agency to effectively     from February through May 2020, the            Melissa Peters, Littler Mendelson P.C.
enforce our safety laws and prevent unnec-     whistleblower program received 4,101
essary injuries, illnesses and fatalities.”    complaints, a 30% increase from the
  The U.S. Bureau of Labor Statistics          year-earlier period, the report said.            “Even though OSHA’s budget request             industry knowledge and is less familiar
on Dec. 16 released its annual Census of         OSHA did not respond to requests for         included the hiring of 155 new inspectors        with the relevant requirements,” he said.
Fatal Occupational Injuries, finding “that     comment.                                       in FY 2022, the current lack of available          “They also may not yet be familiar with
a worker dies every 101 minutes from a           In addition to the pandemic, a switch in     inspectors and time lag for an inspector         OSHA’s Field Operations Manual or
preventable incident at work,” she said.       presidential administrations may have played   to become fully trained can lead to less         other standard OSHA procedures,” he
“So, every day of delay in getting more        a role, according to Alka Ramchandani-         inspections, diminished enforcement              said. “This can lead to attempts to expand
OSHA inspectors on the job to identify         Raj, shareholder and co-chair of the           of high-risk industries, and, ultimately,        inspections for which OSHA has no legal
and reduce workplace hazards can cost an       workplace safety & health practice group       greater risk of injuries or compromised          basis and inappropriate questions during
additional 14 lives.”                          in Littler Mendelson P.C.’s Walnut Creek,      health for workers,” the report said.            employee interviews.”

            SAFETY REGULATORS EXPECTED TO WIDEN SCOPE AS COVID CONCERNS WANE

M     uch is expected from the
      Occupational Safety and Health
      Administration in 2023, as COVID-19
concerns appear to be waning, according
to experts who say changes to record-
                                               care standard for COVID-19 prevention in
                                               health care settings would be a priority.
                                                 In a long-awaited move, OSHA on
                                               Dec. 8 announced that it had filed a
                                               draft of the health care COVID-19 rule
                                                                                              enforcement, directed almost exclusively
                                                                                              to health care employers, effectively
                                                                                              lost all traction once the administration
                                                                                              declared the pandemic was over.”
                                                                                                Mr. Brought added: “OSHA never got
                                                                                                                                               particularly in cases involving injuries.”
                                                                                                                                                 Fines over $100,000 are also increasing,
                                                                                                                                               said Eric Conn, Washington-based founding
                                                                                                                                               partner of Conn Maciel Carey LLP, who
                                                                                                                                               said he tells clients to expect a “resurgence
keeping, the introduction of a heat illness    with the Office of Management and              around to issuing a heat-hazard proposed         of the OSHA enforcement machine.”
and prevention rule, and a focus on            Budget’s Office of Information and             rule in 2022 but did issue an enforcement          Inspections, while limited in number,
repeat offenders are taking center stage.      Regulatory Affairs. The document was not       emphasis program for heat hazards that           are expanding in scope, Mr. Conn said.
  The agency said little throughout 2022       immediately available for public viewing.      appears to have had marginal results,”           Inspectors under the Biden administration
regarding COVID-19 — it last updated its         “OSHA was pulled in multiple directions      he said. “OSHA was, however, very                are “digging deeper, expanding the
recommendations concerning the disease         in 2022,” said Andrew Brought, a               focused on repeat offenders and really           scope of inspections, and doing much
on its website in August 2021 — despite        Kansas City, Missouri-based attorney           ratcheted up inspection and penalties            more involved inspections,” he said.
earlier stating that a permanent health        with Spencer Fane LLP. “COVID                  on employers with prior citations,                                                Louise Esola

                                                                                                                                       BUSINESS INSURANCE            JANUARY 2023        11
INTERNATIONAL

     PROFILE: BOTSWANA
                                                                                                                                                                           MARKET
                                                                                                                                                                           DEVELOPMENTS
                                                                                                                                                                           Updated November 2022
                                                                                                                                                                           ■	The Botswana economy was
                                                                                                                                                                             initially hit by COVID-19
                                                                                                                                                                             restrictions halting mining

       111
                                                                                                                                                                             activity and tourism, but the
                                           Botswana is a small market in terms of the number                                                                                 economy made a strong recovery
                                           of people with the financial capability to obtain                                                                                 in 2021 with GDP up over 12%
                                           insurance. Its proximity to the much larger and                                                                                   in real terms. Insurers had little
                                           more advanced South African economy affects the                                                                                   business interruption exposure,
                                           market, with insurers from that nation establishing                                                                               as policies generally required a
                                           operations and importing their products and                                                                                       physical loss to trigger coverage.
                                           practices. Botswana Insurance Co., the market
                                           leader in 2022 and the oldest insurer in the market,                                                                            ■	The two main insurance classes,
                                           has seen an ebb and flow of business with the                                                                                     property and auto, accounted for
                                           arrival of new competitors. This has led to a highly                                                                              63.4% of gross written premium
                                           competitive market with almost all premium                                                                                        income in the nonlife market
                                           rates under pressure. The combined effects of the                                                                                 in 2020. Liability cover, which
         GLOBAL                            COVID-19 pandemic and the Russian invasion of                                                                                     includes mandatory workers
       P/C MARKET                          Ukraine have resulted in prices generally increasing                                                                              compensation, is also a significant
        RANKING                            at the fastest rate in several years.                                       AREA                                                  class, but its growth potential

                                                                                                                       224,607
                                                                                                                                                                             is limited by the low overall
                                                                                                                                                                             formal employment rate.
                                                                                                                                                                           ■	Small brokers have noted
           MARKET SHARE                                                                                                                                                      that increased compliance
                                                                                    PROPERTY
            SURETY, BONDS                                                             32.7%                            square miles                                          requirements, together with
              & CREDIT                                                                                                                                                       substantial fines for infringements,
                2.0%                                                                                                                                                         are causing problems. Market
                                                                                                                                                                             sources say the Non-Bank Financial
             MARINE,                                                                            AUTO
                                                                                                30.7%                                                                        Institutions Regulatory Authority
            AVIATION                                                                                                                                                         has disallowed the operation of
            & TRANSIT                                                                                                  POPULATION                                            corporate sub-agencies in the
               4.0%

                                                                                                                       2.38
                                                                                                                                                                             market. Sub-agents, many of them
           PA & HEALTH                                                                                                                                                       banks, were previously tied to a
          CARE WRITTEN                                                                                                                                                       broker, which enabled them to be
                                                                                                  LIABILITY
            BY NONLIFE                                                                              14.9%                                                                    remunerated for insurance lead
            COMPANIES                                                                                                                                                        generation. It is understood that
               5.0%                                                                                                    million                                               sub-agencies are now required
                                                                                                                                                                             to obtain their own license.
           CONSTRUCTION                                                                           MISC.
           & ENGINEERING                                                                          5.9%                                                                     ■	Aon Botswana, the brokerage
                5.0%                                                                                                                                                         market leader in the country, was
                                                                                                                                                                             acquired by Minet Group and Africa
                                                                                                                       MARKET CONCENTRATION                                  Lighthouse Capital on June 1, 2021.

                                                                                                                       87.8%
           MARKET GROWTH                                                                                                                                                     The company was subsequently
           In millions, U.S. dollars                                                                                                                                         renamed Minet Botswana.
                                                                Life          Nonlife           PA & Health
              $400

                                                                                                                       market share of top five insurers
              $300

              $200
                                                                                                                       2022 GDP CHANGE
                                                                                                                       (PROJECTED)

                                                                                                                       4.25%
              $100

                 $0
                          2016              2017              2018             2019             2020
              Source: Axco Global Statistics/Industry Associations and Regulatory Bodies

                  COMPULSORY INSURANCE                                                     NONADMITTED                                INTERMEDIARIES                        MARKET PRACTICE
                  ■	Auto third-party bodily injury (state scheme)                         Nonadmitted insurance is not               Brokers and agents are required       Local expertise and capacity are
                                                                                           permitted because the law provides         to be authorized to do insurance      limited, and certain types of risk
                  ■	Workers compensation
                                                                                           that insurance must be purchased           business in Botswana. They are        — including safari camps, aviation,
                  ■	Professional indemnity for insurance                                  from locally licensed insurers.            not permitted to place business       mining projects and marine hulls
                      brokers, insurance agents and auditors                               There are no exceptions specified          with nonadmitted insurers             — are insured abroad, mainly
                  ■	Security (insurance or bank                                           other than that permission may             without permission from the           in the South African market.
                      guarantee) for brokers handling                                      be sought from the regulator               Non-Bank Financial Institutions
                      premiums on behalf of insurers                                       to make such a placement.                  Regulatory Authority.

                  ■	Fidelity insurance for retirement
                      fund administrators                                                                                                                                Information provided by Axco.
                  ■	Aviation liability                                                                                                                                      For free trial access to
                                                                                                                                                                         global insurance intelligence,
                                                                                                                                                                              visit axcoinfo.com.

12   JANUARY 2023         BUSINESS INSURANCE
LEGAL BRIEFS
                                             pump on a chemical production line in
                                             Calhoun County, South Carolina. East-
                                             man Chemical Co., owner of the line,
                                                                                            of Appeals in Boston in Motorists Com-
                                                                                            mercial Mutual Insurance Co. v. Roger
                                                                                            Hartwell; Lynnway Auto Auction Inc.
                                                                                                                                                    DOCKET
                                             contracted with DAK, which in turn               In May 2017, while the Jeep was being
                                             contracted with another maintenance            put up for auction inside Lynnway’s Bil-
                                             company, Mundy Maintenance Service             lerica facility, it accelerated into a crowd,
                                             and Operations LLC.                            killing five people and causing multiple
                                               In attempting to remove the pump             serious injuries, according to the ruling.
                                             without draining it first, the three workers     The victims and their estates filed a
Chubb must cover                             loosened the bolts securing it; an explo-
                                             sion occurred in which molten liquid
                                                                                            series of lawsuits in Massachusetts state
                                                                                            court against Lynnway, associated entities
                                                                                                                                            LOUIS VUITTON FACES
                                                                                                                                            BIOMETRIC LAWSUIT
ransomware loss                              killed Mr. Zeigler and severely burned
                                             Mr. Jackson and Mr. Vann.
                                                                                            and Mr. Hartwell, a Lynnway employee
                                                                                            who was in the driver’s seat at the time of
                                                                                                                                            A federal district court in New
                                                                                                                                            York refused to dismiss a putative
n A federal district court ruled against       In April 2017, the two workers and           the accident.                                   class-action lawsuit filed under
a Chubb Ltd. unit and held that a Port-      Mr. Zeigler’s wife filed separate personal       Dealership insurer Motorist Commer-           Illinois’ Biometric Privacy Act
land, Oregon, beverages and sauces man-      injury actions against Eastman and             cial, based in Columbus, Ohio, filed suit       against fashion designer Louis
ufacturer is entitled to the more than       Mundy in federal district court, alleging      in U.S. District Court in Boston, seeking       Vuitton in connection with its
$107,000 it reimbursed its president after   that Eastman’s employees “were negli-          a declaration its policies did not cover the    website’s eyeglass “Virtual Try-On”
he made a ransomware payment out of his      gent in their management of the retained       auctioneer or Mr. Hartwell. The district        feature. Illinois residents Paula
personal cryptocurrency funds.               line, and that Mundy’s employees were          court ruled in the insurer’s favor and was      Theriot and Cheryl Doyle charged
  Yoshida Foods International LLC            negligent in their attempt to unclog the       affirmed by a unanimous three-judge             that the Paris-based luxury fashion
purchased insurance from Chubb unit          drainpipe prior to the explosion,” accord-     appeals court panel.                            designer, whose U.S. headquarters
Federal Insurance Co. that included          ing to case No. 19-1643, consolidated by         A policy exclusion excepted from the          is in New York, violated the act
computer fraud coverage under the crime      the 4th U.S. Circuit Court of Appeals in       definition of insureds a third party that is    by collecting customers’ “facial
coverage part of its policy, according to    Richmond, Virginia.                            in the business of selling the dealership’s     geometry” information via its try-on
the ruling by the U.S. District Court in       Eastman moved to dismiss the suits,          autos, the ruling said.                         tool without providing them with
Portland in Yoshida Foods International      contending that the contractors qualified        “No reasonable insured that procured          a written notice of the collection,
LLC v. Federal Insurance Co.                 as Eastman’s “statutory employees” under       the policy would ordinarily have any            its purpose and its length of time.
  In March 2021, an anonymous hacker         the South Carolina Workers’ Compensa-          interest in paying for a policy that provid-
gained unauthorized access to Yoshida’s      tion Law and that workers compensation         ed coverage for another person who works        WALMART SETTLES
computer system and used malware to          was their exclusive remedy, and that the       for another unrelated seller of autos,” the     PRESCRIPTION CASE
encrypt data in its storage devices, ren-    courts lacked jurisdiction to hear their       ruling said.                                    Walmart Inc. agreed to a $500,000
dering the system unusable, according to     claims. The district court agreed and                                                          settlement with Massachusetts
the ruling.
  Yoshida President Junki Yoshida used
                                             dismissed the lawsuits.
                                               In overturning that decision and             Pro-policyholder                                for allegedly violating the state’s
                                                                                                                                            prescription pricing procedures
his personal cryptocurrency funds to pay
$107,074 for the four decryption keys
                                             remanding the case, the appeals court
                                             cited a 2019 ruling by the South Carolina
                                                                                            COVID ruling upheld                             designed to keep workers
                                                                                                                                            compensation costs down.
needed, for which he was later reimbursed    Supreme Court in Keene v. CNA Holdings         n A Pennsylvania appeals court upheld           The retailer did not admit any
by the company.                              LLC, saying that “when an employer             a lower court ruling in favor of a dental       wrongdoing in connection with the
  Federal denied coverage, arguing the       makes a ‘legitimate business decision’         office that sued CNA Financial Corp. for        settlement. Massachusetts sets
company did not sustain a “direct loss”      to outsource a portion of its work, the        COVID-19-related business interruption          limits on the costs of medications
from computer fraud, with its only loss      contractors it hires to perform that work      coverage.                                       prescribed to injured workers
occurring when it reimbursed the com-        are not ‘statutory employees’ for workers        Last year, in Timothy A. Ungarean d/b/a       and mandates that companies
pany president, who was not personally       compensation purposes.”                        Smile Savers Dentistry P.C. v. CNA and          validate prices against specific
insured under the policy.                                                                   Valley Forge Insurance Co., the Court of        regulatory benchmarks before
  The court disagreed, saying, “There was                                                   Common Pleas of Allegheny County                processing charges. The state
no intervening occurrence between the                                                       granted summary judgment to Dr.                 earlier reached similar settlements
ransomware attacks, the ransom payment,                                                     Ungarean.                                       with Express Scripts Inc., Optum
and the reimbursement to Mr. Yoshida,                                                         CNA had argued that business inter-           Rx Inc., Stop & Shop Supermarket
which were all part of an unbroken                                                          ruption coverage should only be triggered       Co. LLC, United Pharmacy
sequence of events.”                                                                        if there was damage to the property.            Services LLC and Walgreens Co.
  Whether Mr. Yoshida made the ransom-                                                        Among other things, the policy stated
ware payment, or the company reimbursed                                                     that business interruption coverage was         TINA TURNER MUSICAL
                                                                                                                                            DUE COVID COVERAGE
him, was “irrelevant,” the court said, in
granting Yoshida summary judgment.           Insurer off hook                               triggered “by direct physical loss of or
                                                                                            damage to property at the described prem-       A Broadway musical based on
                                             in crash litigation                            ises” and the lower court ruled that the use    the life and music of Tina Turner

Fatal explosion                              n The insurer of a car dealership that
                                                                                            of the word “or” showed that the concepts
                                                                                            of “loss” and “damage” were separate. Loss
                                                                                                                                            that was canceled because of
                                                                                                                                            COVID-19 is entitled to coverage
suits can proceed                            owned a car that suddenly accelerated
                                             into a group of attendees at an auction,
                                                                                            could be interpreted to include loss of pos-
                                                                                            session, such as via COVID-19-related
                                                                                                                                            from a Chubb Ltd. unit, a New
                                                                                                                                            York state appeals court ruled in
n A U.S. appeals court ruled that law-       killing five people, does not have to pro-     lockdowns that forced numerous business-        affirming a lower court ruling. A
suits filed by the wife of a worker who      vide coverage in the subsequent litigation,    es to close offices or suspend operations.      three-judge panel of the New York
was killed and by two workers who were       a federal appeals court ruled in affirming       The Superior Court of Pennsylvania in         Supreme Court, appellate division,
injured in a chemical accident can pro-      a lower court decision.                        Harrisburg upheld the lower court ruling,       first judicial department, affirmed
ceed, reversing a lower court’s decision       Merrimack, New Hampshire-based               saying that “based primarily on the trial       the decision that a communicable
that barred the litigation on workers com-   Nashua Automotive LLC received a               court’s thoughtful opinion, we affirm the       disease exclusion in coverage
pensation exclusive remedy grounds.          2006 Jeep Grand Cherokee in a 2017             court’s order granting summary judgment         provided by Chubb unit Chubb
  In December 2016, Alton Zeigler,           trade-in and arranged for Billerica, Mas-      and declaring that coverage is owed to          Insurance Co. of Europe SE did
Jacob Jackson and Kevin Vann — main-         sachusetts-based Lynnway Auto Auction          Ungarean for his COVID-related busi-            not apply to the production of
tenance employees of DAK Americas            Inc. to auction the vehicle, according to      ness losses under the specific terms of the     “TINA: The Tina Turner Musical.”
LLC — attempted to remove a faulty           the ruling by the 1st U.S. Circuit Court       CNA Policy.”

                                                                                                                                    BUSINESS INSURANCE       JANUARY 2023          13
FEBRUARY 1-3, 2023
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VIEW FROM THE TOP
                                                                                    Alex Sun
                                                                                                ENLYTE

                                     Q Enlyte is a company formed
                                       from three companies.
                                     What is the vision now?
                                                                                  making sure that we have a vibrant
                                                                                  workforce, but I think that given the
                                                                                  pandemic and the Great Resignation,
                                                                                                                                 A   We’re focused on trying to help
                                                                                                                                     an injured party navigate this
                                                                                                                                 system through a focus on the whole
                                                                                  that the challenges increased, be it on        person. I think that’s what we’ve seen.

                                     A   Our principal mission is to assist
                                         our clients and help them restore
                                     the lives of their customers after a
                                                                                  clinical staff, claims adjusting teams, or
                                                                                  certainly anything involving technology.
                                                                                  I think there are a lot of ways that we’ve
                                                                                                                                 Particularly in the last year, there’s
                                                                                                                                 been a focus on mental health and
                                                                                                                                 other things that may not be directly
                                     challenging event. We’ve defined that        all learned to address the challenges.         related to the physical expression
                                     as trying to have the greatest impact        First, we learned during the first period      of an injury but something that may
                                     on claims outcomes. So, part of that         of the COVID pandemic, when everybody          be in the background. It could be
                                     was making sure that we had leading          went into remote work environments,            everything, including diet and medical
                                     capabilities across all solutions that       that a transition to a remote workforce        conditions related to where you live,
Alex Sun took the helm as CEO        help address the medical claims              ultimately became a capability that we         and whether you have ready access
of San Diego-based Enlyte LLC in     cost side of the equation, as well as        all became pretty comfortable with.            to basic medical services. All of that
                                     services that focus on the injured                                                          becomes part of helping someone
2021, when it was formed through     worker and getting them back to work.                                                       navigate their treatments and getting
the merger of three companies        We’re about having maximum medical                                                          back to work as quickly as possible.
in the workers compensation          improvement. So really the vision for

sector: Coventry Workers Comp
                                     the parent company of Mitchell, Genex,
                                     and Coventry was bringing the leading                                                       Q  How does the company best
                                                                                                                                    balance its objectives along
Services, Genex Services LLC         providers of technology, clinical and                                                       with caring for injured workers?
                                     network solutions all together in one
and Mitchell International Inc.
Mr. Sun was formerly CEO of
                                     organization where if we do our jobs
                                     we will leverage the intersections to
                                     create better outcomes for our clients.
                                                                                                                                 A   Caring for injured workers is
                                                                                                                                     central to our mission. We focus
                                                                                                                                 both on the injured worker through
Mitchell, which he joined in 2001.
                                                                                                                                 clinical services as well as trying to
Prior to that, he spent a decade
in the banking and financial         Q  How do mergers such as
                                        this help clients best?
                                                                                                                                 drive greater efficiency and accuracy
                                                                                                                                 in the claims-handling process,
services industry. He spoke with                                                                                                 so that there is a focus on total

Assistant Editor Louise Esola
about the benefits of combining
                                     A   As we look out into the future, it is
                                         important to be a skilled provider.
                                     So, it’s making sure that you have all       And as we continue to all strive to be
                                                                                                                                 cost of claims. Obviously, there’s
                                                                                                                                 a very deep focus on the injured
                                                                                                                                 worker and making sure that they
the operations and challenges        the right infrastructure, the information    employers of choice, I think we are now        get back to work because that’s
                                     security investments, and product            adjusting our workplace strategies to          an important aspect of controlling
in the workers compensation          and service quality. A deep focus on         be more accommodated to the needs of           claims costs, including the medical
arena. Edited excerpts follow.       the customer and a strong analytics          employees so that we can remain that           claims cost side of the equation.
                                     platform are part and parcel of being an     employer of choice. So, many of us are
                                     excellent provider. What we were also
                                     trying to do on top of that is identify
                                                                                  trying to be more flexible just to save
                                                                                  on commutes, or to improve work-life           Q  What do you like
                                                                                                                                    about what you do?
                                     where there’s connectivity between           balance, because this is an industry
                                     software solutions, clinical solutions and
                                     network solutions, and take advantage
                                                                                  that demands a lot from people.
                                                                                                                                 A    I’ve always wanted to be part of
                                                                                                                                      something special — a community
                                     of those connections to try to deliver
                                     better outcomes to our customers, be         Q  What are top
                                                                                     trends to watch?
                                                                                                                                 of people with a shared purpose.
                                                                                                                                 And I wanted that purpose to be
                                     it greater efficiency or claims handling.                                                   meaningful. And so we take our
                                     We want a better ability to serve the
                                     injured worker efficiently with high
                                     levels of communication quality,
                                                                                  A   A dynamic legislative and
                                                                                      regulatory environment. Inflation
                                                                                  is also something that we have to
                                                                                                                                 mission very seriously, which is to
                                                                                                                                 provide support to our customers as
                                                                                                                                 they try to restore the lives of their
                                     and to also optimize the process.            contend with — medical inflation               clients after a challenging event. To
                                                                                  or the inflation associated with               me that is very, very important work.

                                     Q  What are some of the challenges
                                        facing the industry?
                                                                                  repairing a vehicle. Lastly, there
                                                                                  continues to be a challenging liability
                                                                                                                                 Insurance is woven deep into the
                                                                                                                                 fabric of society, and so we in our
                                                                                  environment and nuclear verdicts.              small way can help deliver on the

                                     A  Probably one that almost seems to
                                        be universally discussed in the last
                                     year has been the challenging labor          Q   A trend we have been following
                                                                                      is the advocacy model for
                                                                                                                                 promise of the insurance industry.
                                                                                                                                 It’s a very personal thing for myself
                                                                                                                                 and the nearly 6,000 associates that
                                     environment. P&C insurance has always        treating injured workers. How has              we have here at Enlyte. And I think it’s
                                     had some challenges with respect to          this evolved in recent years?                  a very important part of our culture.

                                        Particularly in the last year, there’s been a focus on mental health and other things that may not be directly
                                               related to the physical expression of an injury but something that may be in the background.
                                                                                                                            BUSINESS INSURANCE         JANUARY 2023         15
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