2014 Winners List

2014 Risk All Stars

Topics: Risk All Stars

Jeff Driver: A Driven Visionary

Chief Risk Officer, Stanford University Medical Center

Jeff Driver’s efforts ensure consistent risk management throughout the Stanford University Medical Center and its Accountable Care Organizations.

Leslie Lamb: Cross Talk (+Responsibility Leader)

Director of Global Risk & Resiliency Management, Cisco Systems

Leslie Lamb started off a dialogue within Cisco Systems about exposures that helped mitigate risk while better informing underwriters and brokers.

Zachary Gifford: Finding the Balance

Associate Director for Systemwide Risk Management, The California State University

Protecting the California University System from risks associated with campus sports clubs took Zachary Gifford’s leadership and collaboration.

Thomas Dunbar: Protecting His Company

Chief Information Risk Officer, XL Group plc

By using cyber security education and other tools, Thomas Dunbar reduces the risks at his company.


David Hershey: Standing up for Insureds (+Responsibility Leader)

Risk Manager, Sprague Operating Resources
(Axel Johnson Inc.)

David Hershey made sure that insurers for his company’s vendors and suppliers complied with notification requirements for when insurance was cancelled or not renewed.

Steve Stoeger-Moore: Alternative Vision Saves Millions (+Responsibility Leader)

President, Districts Mutual Insurance

By creating a mutual insurance company for 16 technical colleges, Steve Stoeger-Moore saved the group $10 million in premium over the past 10 years.

Janine Pitocco: Do It Safely or Don’t Do It

Environmental, Health and Safety Manager, FM Global

Janine Pitocco’s emphasis on safety and training programs has reduced the number of OSHA-reportable injuries by 70 percent.

Dan Holden: Doing More With Less (+Responsibility Leader)

Manager, Corporate Risk & Insurance, Daimler Trucks North America

When all risk management responsibilities landed on his sole shoulders, Dan Holden found a way to make it work, and saved his truck manufacturing company millions at the same time.
Chris Chathams and Letitia Estrada: Team Tackles Timber Safety Gaps (+Responsibility Leaders)

Chris Chathams, Safety Resource Director, TPMA

Latitia Estrada, Human Resource Generalist and Grant Coordinator, TPMA

The timber industry is inherently dangerous, but Chris Chathams and Letitia Estrada found a way to get funding and designed safety programs to make it safer.

Michael Gross: Ending Unnecessary Accidents

National Safety Director, Convergint Technologies

Stopping distracted driving meant establishing clear and actionable guidelines for disciplinary action when such events occurred.

Tim Davidson: No Injured Worker Left Behind

Assistant Vice President of Loss Prevention, Corporate Safety and Security Officer, IASIS Healthcare

By overhauling his company’s return-to-work program, Tim Davidson made it virtually impossible for an injured worker to fall through the cracks.

Dr. Frank Tomecek: Reducing Patient and Workers’ Comp Pain

Neurosurgeon, Oklahoma Spine & Brain Institute

By using electrodiagnostic functional assessments to collect more data on muscle and nerve function, Dr. Frank Tomecek is reducing unnecessary surgery.

Richard Pcihoda: Crisis Management Coordination (+Responsibility Leader)

Director of Risk Management, PREIT Services LLC

By his actions both before and after Hurricane Sandy, Richard Pcihoda successfully mitigated the damaging impact of Superstorm Sandy.

Elizabeth Ruff: Simply Peerless

Human Resources Generalist, Peerless Industrial Group

Elizabeth Ruff has developed a reputation as a “difference-maker.” It began with wrestling an unruly lost-time culture to the ground.

Patty Hostine: Vocal Rehabilitation Success (+Responsibility Leader)

Manager, Workers’ Compensation, Cooper Standard Automotive

Taking cues from her vocational rehabilitation background, Patty Hostine kept injured workers on the job and kept the company from drowning in claims costs.


350px_allstarRisk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, perseverance and/or passion.

Responsibility Leaders overcome obstacles by doing the right thing over the easy thing to find  practical solutions that benefit their co-workers and community.


Insurers Take to the Skies

This year’s hurricane season sees the use of drones and other aerial intelligence gathering systems as insurers seek to estimate claims costs.
By: | November 1, 2017 • 6 min read

For Southern communities, current recovery efforts in the wake of Hurricane Harvey will recall the painful devastation of 2005, when Katrina and Wilma struck. But those who look skyward will notice one conspicuous difference this time around: drones.


Much has changed since Katrina and Wilma, both economically and technologically. The insurance industry evolved as well. Drones and other visual intelligence systems (VIS) are set to play an increasing role in loss assessment, claims handling and underwriting.

Farmers Insurance, which announced in August it launched a fleet of drones to enhance weather-related property damage claim assessment, confirmed it deployed its fleet in the aftermath of Harvey.

“The pent-up demand for drones, particularly from a claims-processing standpoint, has been accumulating for almost two years now,” said George Mathew, CEO of Kespry, Farmers’ drone and aerial intelligence platform provider partner.

“The current wind and hail damage season that we are entering is when many of the insurance carriers are switching from proof of concept work to full production rollout.”

 According to Mathew, Farmers’ fleet focused on wind damage in and around Corpus Christi, Texas, at the time of this writing. “Additional work is already underway in the greater Houston area and will expand in the coming weeks and months,” he added.

No doubt other carriers have fleets in the air. AIG, for example, occupied the forefront of VIS since winning its drone operation license in 2015. It deployed drones to inspections sites in the U.S. and abroad, including stadiums, hotels, office buildings, private homes, construction sites and energy plants.

Claims Response

At present, insurers are primarily using VIS for CAT loss assessment. After a catastrophe, access is often prohibited or impossible. Drones allow access for assessing damage over potentially vast areas in a more cost-effective and time-sensitive manner than sending human inspectors with clipboards and cameras.

“Drones improve risk analysis by providing a more efficient alternative to capturing aerial photos from a sky-view. They allow insurers to rapidly assess the scope of damages and provide access that may not otherwise be available,” explained Chris Luck, national practice leader of Advocacy at JLT Specialty USA.

“The pent-up demand for drones, particularly from a claims-processing standpoint, has been accumulating for almost two years now.” — George Mathew, CEO, Kespry

“In our experience, competitive advantage is gained mostly by claims departments and third-party administrators. Having the capability to provide exact measurements and details from photos taken by drones allows insurers to expedite the claim processing time,” he added.

Indeed, as tech becomes more disruptive, insurers will increasingly seek to take advantage of VIS technologies to help them provide faster, more accurate and more efficient insurance solutions.

Duncan Ellis, U.S. property practice leader, Marsh

One way Farmers is differentiating its drone program is by employing its own FAA-licensed drone operators, who are also Farmers-trained claim representatives.

Keith Daly, E.V.P. and chief claims officer for Farmers Insurance, said when launching the program that this sets Farmers apart from most carriers, who typically engage third-party drone pilots to conduct evaluations.

“In the end, it’s all about the experience for the policyholder who has their claim adjudicated in the most expeditious manner possible,” said Mathew.

“The technology should simply work and just melt away into the background. That’s why we don’t just focus on building an industrial-grade drone, but a complete aerial intelligence platform for — in this case — claims management.”

Insurance Applications

Duncan Ellis, U.S. property practice leader at Marsh, believes that, while currently employed primarily to assess catastrophic damage, VIS will increasingly be employed to inspect standard property damage claims.

However, he admitted that at this stage they are better at identifying binary factors such as the area affected by a peril rather than complex assessments, since VIS cannot look inside structures nor assess their structural integrity.

“If a chemical plant suffers an explosion, it might be difficult to say whether the plant is fully or partially out of operation, for example, which would affect a business interruption claim dramatically.


“But for simpler assessments, such as identifying how many houses or industrial units have been destroyed by a tornado, or how many rental cars in a lot have suffered hail damage from a storm, a VIS drone could do this easily, and the insurer can calculate its estimated losses from there,” he said.

In addition,VIS possess powerful applications for pre-loss risk assessment and underwriting. The high-end drones used by insurers can capture not just visual images, but mapping heat, moisture or 3D topography, among other variables.

This has clear applications in the assessment and completion of claims, but also in potentially mitigating risk before an event happens, and pricing insurance accordingly.

“VIS and drones will play an increasing underwriting support role as they can help underwriters get a better idea of the risk — a picture tells a thousand words and is so much better than a report,” said Ellis.

VIS images allow underwriters to see risks in real time, and to visually spot risk factors that could get overlooked using traditional checks or even mature visual technologies like satellites. For example, VIS could map thermal hotspots that could signal danger or poor maintenance at a chemical plant.

Chris Luck, national practice leader of Advocacy, JLT Specialty USA

“Risk and underwriting are very natural adjacencies, especially when high risk/high value policies are being underwritten,” said Mathew.

“We are in a transformational moment in insurance where claims processing, risk management and underwriting can be reimagined with entirely new sources of data. The drone just happens to be one of most compelling of those sources.”

Ellis added that drones also could be employed to monitor supplies in the marine, agriculture or oil sectors, for example, to ensure shipments, inventories and supply chains are running uninterrupted.

“However, we’re still mainly seeing insurers using VIS drones for loss assessment and estimates, and it’s not even clear how extensively they are using drones for that purpose at this point,” he noted.

“Insurers are experimenting with this technology, but given that some of the laws around drone use are still developing and restrictions are often placed on using drones [after] a CAT event, the extent to which VIS is being used is not made overly public.”

Drone inspections could raise liability risks of their own, particularly if undertaken in busy spaces in which they could cause human injury.

Privacy issues also are a potential stumbling block, so insurers are dipping their toes into the water carefully.

Risk Improvement

There is no doubt, however, that VIS use will increase among insurers.


“Although our clients do not have tremendous experience utilizing drones, this technology is beneficial in many ways, from providing security monitoring of their perimeter to loss control inspections of areas that would otherwise require more costly inspections using heavy equipment or climbers,” said Luck.

In other words, drones could help insurance buyers spot weaknesses, mitigate risk and ultimately win more favorable coverage from their insurers.

“Some risks will see pricing and coverage improvements because the information and data provided by drones will put underwriters at ease and reduce uncertainty,” said Ellis.

The flip-side, he noted, is that there will be fewer places to hide for companies with poor risk management that may have been benefiting from underwriters not being able to access the full picture.

Either way, drones will increasingly help insurers differentiate good risks from bad. In time, they may also help insurance buyers differentiate between carriers, too. &

Antony Ireland is a London-based financial journalist. He can be reached at [email protected]