2018 Power Broker


No Problem Too Big

Charmaine Davis, CIC, CRM
Senior Vice President
Marsh, Washington, D.C.

Earthquakes on campus? No problem. Remote flights? No problem. High premiums? No problem. With Charmaine Davis, clients know the words “no problem” aren’t lip service.

Davis’ “no problem” solutions are the result of hard work, industry knowledge and connections; understanding client needs; and leveraging the marketplace to her clients’ advantage.

“When I was new to my job, Charmaine carried me — she educated me and helped me understand this field,” said one higher education client.

“More recently, when an earthquake damaged buildings on campus, caused a gas leak and left one building shuttered, Charmaine and her Marsh team walked us through this large, complex claim. She spent many, many extra hours on this, and there were never any fees or charges — just total support.”

“Her advice is perfect,” said another client. “I would recommend Charmaine to anyone.”


The client added that Davis was able to renegotiate their high-premium workers’ comp coverage into a unique risk solution — a program that provided them with chargeback money, ultimately saving them around $200,000. “That savings is because of Charmaine,” he added. “She used her ingenuity to make that happen.”

“Nothing fazes Charmaine,” said another client whose wildlife conservation program requires charter flights to remote locations. She said Davis introduced them to a risk management program that helps enterprise-wide, allowing them to focus on their mission.

He Can Teach You a Thing or Two

Tyler LaMantia, CLCS
Area Executive Vice President
Gallagher, Rolling Meadows, Ill.

Every school district wants to allocate funds to its core purpose: educating students. Tyler LaMantia helped school district members of the Prairie State Insurance Cooperative (PSIC) in Illinois do just that — and more. Working closely with PSIC and its executive board, LaMantia developed a multi-year plan to protect the pool’s finances by mitigating risk with proactive claim management and loss control, while keeping member deductibles low and retentions stable.

PSIC members also improved risk management using a three-pronged loss control program LaMantia helped implement, resulting in fewer claims. Members received on-site loss control strategies targeted specifically at their risk needs and online loss-control training for all school district employees. Additionally, he educated them about cyber risks, leading to the decision to make cyber-threat coverage part of their package rather than an add-on.

“Tyler and the team literally built a better mouse trap,” said Dave Cratty, finance manager, Special Education Association of Peoria County. “Tyler’s dedication to and knowledge of the education sector, particularly in K to 12, is so strong. There might be someone out there who knows as much as him, but it’s hard to imagine anyone who knows more.”

In 2017, PSIC declared an equity return of more than $700,000 to its member school districts while maintaining a low-deductible structure — with no increases to property, auto or general liability deductibles. They also closed out 2009/2010 and 2010/2011 policy year claims, which typically were taking 10 or more years to settle.

Changing the Conversation

Shelley Levine, CIC, CRM, CSRM
Area Executive Vice President
Gallagher, New York

One of Shelley Levine’s education clients had an important but unplanned call in just a few hours. So he emailed her for some advice. Could she spend some time going over their policy to prep him? Of course, she said. But she did one better. Within the hour Levine was on campus and ready to take the call with her client.

“That’s the kind of customer service we get from Shelley. She’s super-responsive in addition to being knowledgeable, analytical and a strong negotiator.”

One client said Levine’s knowledge and negotiating skill enhanced their coverage while decreasing their costs.

“Shelley conducted an analysis of our coverage, which resulted in us gaining millions of dollars in additional coverage, two or three new lines of coverage and a couple of enhancements — all for the same or less premium cost than we had been paying,” said the client.


When an education client challenged Levine to help them enhance their enterprise risk management (ERM) she took the time to get to know the school’s culture with an eye on every operational detail.

The school wanted faculty, staff and students to play a role in ERM but was struggling with how to include students who already had packed schedules.

“Shelley changed the conversation. Instead of a club or another meeting for the kids around ERM, she laid out a process that students use to make decisions. The new process integrated ERM into what they were already doing. Students make policy around real problems we face.”

Protecting the Study Abroad Experience

Chris Lueders, ARM
Area Senior Vice President
Gallagher, Rolling Meadows, Ill.

What’s that line about “the best laid plans?” Many of us have had something important — and costly — go wrong. For students studying abroad, such a disruption can affect academic progress and derail chances for a meaningful learning experience.

Chris Lueders of Gallagher came up with a risk solution for this problem at a major university. Their director of risk management explained: “We had no mechanism in place to provide student refunds if study abroad trips needed to be cancelled. There are sometimes concerns around international travel or specific travel advisories or bans that we follow for student safety.

“Chris worked very hard and was instrumental in putting together a trip cancellation policy and insurance product — the first one we had and the first one I am aware of in the market. Now this product is mandatory for our students embarking on study abroad trips.”

The director of compliance and risk management at another of Lueder’s higher education clients lauded her for great customer service — turnaround within two          hours — and for being a creative thinker who devises creative solutions.

This client had a complicated placement with moving and storing library books. The property carrier wasn’t competitive, so Lueder explored options and got coverage for the books under a cargo policy for a great price. The client added, “We’ve had some other sticky or 11th hour placements, but I’ve never felt placed on the back burner by Chris — she always makes us feel like we’re her most important client.”

Securing Hard-to-Get Coverage

Roberto Santiago
Vice President
Marsh, New York

Football and its relationship with traumatic brain injury (TBI) have been in the news of late, but the reality is that this risk exists in other areas, too. Sports such as ice hockey, rugby, soccer and even cheerleading carry TBI risks, explained Evelyn Wilson, director of purchasing and vendor relations, Salem State University.

The number of carriers willing to write coverage is limited.  Salem State University and fellow members of a Massachusetts-based college consortium bought coverage together — until their carrier drastically altered coverage by attaching a participant injury waiver and a neurodegenerative injury exclusion to all their accounts.

They faced an uphill battle; but they didn’t face it alone. They turned to Roberto Santiago of Marsh to give them the home-team advantage.


Santiago faced a triple challenge: Find a replacement insurer, find it in a limited marketplace and convince the insurer to write the unique program structure the consortium members needed to operate athletics programs and protect students. Santiago conducted an extensive search without breaking a sweat. The result was a program that covered TBI at a very competitive price.

“Roberto has a very deep knowledge about higher education,” said Wilson. “His analysis is always in-depth, and he works very closely with us and other members of the consortium. He’s responsive, his customer service is excellent and we could not be happier with him.”

One Size Does Not Fit All

James Shewey
Client and Sales Executive
RCM&D, Glen Allen, Va.

Life on a college campus is rarely dull. Consequently, neither is life as a campus risk manager. But RCM&D’s James Shewey is helping to create risk solutions that leave everyone involved breathing a little easier.

Steve McAllister, vice president for finance and administration, Washington and Lee University, had handled a lot in his tenure.

Then the dance program told him that they wanted to do a spring semester performance off the side of a campus building. Not to worry. Just call James.

“We called James, and he worked closely with the carrier, the dance program, the rig company and everyone else to coordinate all the needs and make sure we were covered. James knows that insurance is not a one-size-fits-all box for us, and he is flexible in his approach and in managing both liability and perception of liability,” said McAllister.

Shewey also helped the Washington and Lee team with emergency management planning and drills. “James helped our internal team plan and hold these emergency drills in real time. Afterward he evaluated the drills and made recommendations to us,” said McAllister.

Pat McCann, CFO, the University of Virginia Foundation, said James is a 10 out of 10 in customer service, industry knowledge and risk solutions.

“We have a lot of real estate,” McCann noted. “And James has been very strategic in how he structures that coverage, so we get the right coverage at a fair price. He’s also brought in experts at no cost to us to advise us on risk management issues. He is exceptional.”

The complete list of 2018 Power Broker® winners can be found here.


Nick Baumgartner
Account Executive
Aon, Chicago

Alex Burton
Area President
Gallagher, Birmingham, Al.

James Gershon
Executive Vice President
Bolton & Company, Santa Clara, Calif.

Greg Hunter
Area Managing Director
Gallagher, Boston

Wendy Rosler
Senior Vice President
Marsh, New York






More from Risk & Insurance

More from Risk & Insurance

Risk Focus: Cyber

Expanding Cyber BI

Cyber business interruption insurance is a thriving market, but growth carries the threat of a mega-loss. 
By: | March 5, 2018 • 7 min read

Lingering hopes that large-scale cyber attack might be a once-in-a-lifetime event were dashed last year. The four-day WannaCry ransomware strike in May across 150 countries targeted more than 300,000 computers running Microsoft Windows. A month later, NotPetya hit multinationals ranging from Danish shipping firm Maersk to pharmaceutical giant Merck.


Maersk’s chairman, Jim Hagemann Snabe, revealed at this year’s Davos summit that NotPetya shut down most of the group’s network. While it was replacing 45,000 PCs and 4,000 servers, freight transactions had to be completed manually. The combined cost of business interruption and rebuilding the system was up to $300 million.

Merck’s CFO Robert Davis told investors that its NotPetya bill included $135 million in lost sales plus $175 million in additional costs. Fellow victims FedEx and French construction group Saint Gobain reported similar financial hits from lost business and clean-up costs.

The fast-expanding world of cryptocurrencies is also increasingly targeted. Echoes of the 2014 hack that triggered the collapse of Bitcoin exchange Mt. Gox emerged this January when Japanese cryptocurrency exchange Coincheck pledged to repay customers $500 million stolen by hackers in a cyber heist.

The size and scope of last summer’s attacks accelerated discussions on both sides of the Atlantic, between risk managers and brokers seeking more comprehensive cyber business interruption insurance products.

It also recently persuaded Pool Re, the UK’s terrorism reinsurance pool set up 25 years ago after bomb attacks in London’s financial quarter, to announce that from April its cover will extend to include material damage and direct BI resulting from acts of terrorism using a cyber trigger.

“The threat from a cyber attack is evident, and businesses have become increasingly concerned about the extensive repercussions these types of attacks could have on them,” said Pool Re’s chief, Julian Enoizi. “This was a clear gap in our coverage which left businesses potentially exposed.”

Shifting Focus

Development of cyber BI insurance to date reveals something of a transatlantic divide, said Hans Allnutt, head of cyber and data risk at international law firm DAC Beachcroft. The first U.S. mainstream cyber insurance products were a response to California’s data security and breach notification legislation in 2003.

Jimaan Sané, technology underwriter, Beazley

Of more recent vintage, Europe’s first cyber policies’ wordings initially reflected U.S. wordings, with the focus on data breaches. “So underwriters had to innovate and push hard on other areas of cyber cover, particularly BI and cyber crimes such as ransomware demands and distributed denial of service attacks,” said Allnut.

“Europe now has regulation coming up this May in the form of the General Data Protection Regulation across the EU, so the focus has essentially come full circle.”

Cyber insurance policies also provide a degree of cover for BI resulting from one of three main triggers, said Jimaan Sané, technology underwriter for specialist insurer Beazley. “First is the malicious-type trigger, where the system goes down or an outage results directly from a hack.

“Second is any incident involving negligence — the so-called ‘fat finger’ — where human or operational error causes a loss or there has been failure to upgrade or maintain the system. Third is any broader unplanned outage that hits either the company or anyone on which it relies, such as a service provider.”

The importance of cyber BI covering negligent acts in addition to phishing and social engineering attacks was underlined by last May’s IT meltdown suffered by airline BA.

This was triggered by a technician who switched off and then reconnected the power supply to BA’s data center, physically damaging servers and distribution panels.

Compensating delayed passengers cost the company around $80 million, although the bill fell short of the $461 million operational error loss suffered by Knight Capital in 2012, which pushed it close to bankruptcy and decimated its share price.

Mistaken Assumption

Awareness of potentially huge BI losses resulting from cyber attack was heightened by well-publicized hacks suffered by retailers such as Target and Home Depot in late 2013 and 2014, said Matt Kletzli, SVP and head of management liability at Victor O. Schinnerer & Company.


However, the incidents didn’t initially alarm smaller, less high-profile businesses, which assumed they wouldn’t be similarly targeted.

“But perpetrators employing bots and ransomware set out to expose any firms with weaknesses in their system,” he added.

“Suddenly, smaller firms found that even when they weren’t themselves targeted, many of those around them had fallen victim to attacks. Awareness started to lift, as the focus moved from large, headline-grabbing attacks to more everyday incidents.”

Publications such as the Director’s Handbook of Cyber-Risk Oversight, issued by the National Association of Corporate Directors and the Internet Security Alliance fixed the issue firmly on boardroom agendas.

“What’s possibly of greater concern is the sheer number of different businesses that can be affected by a single cyber attack and the cost of getting them up and running again quickly.” — Jimaan Sané, technology underwriter, Beazley

Reformed ex-hackers were recruited to offer board members their insights into the most vulnerable points across the company’s systems — in much the same way as forger-turned-security-expert Frank Abagnale Jr., subject of the Spielberg biopic “Catch Me If You Can.”

There also has been an increasing focus on systemic risk related to cyber attacks. Allnutt cites “Business Blackout,” a July 2015 study by Lloyd’s of London and the Cambridge University’s Centre for Risk Studies.

This detailed analysis of what could result from a major cyber attack on America’s power grid predicted a cost to the U.S. economy of hundreds of billions and claims to the insurance industry totalling upwards of $21.4 billion.

Lloyd’s described the scenario as both “technologically possible” and “improbable.” Three years on, however, it appears less fanciful.

In January, the head of the UK’s National Cyber Security Centre, Ciaran Martin, said the UK had been fortunate in so far averting a ‘category one’ attack. A C1 would shut down the financial services sector on which the country relies heavily and other vital infrastructure. It was a case of “when, not if” such an assault would be launched, he warned.

AI: Friend or Foe?

Despite daunting potential financial losses, pioneers of cyber BI insurance such as Beazley, Zurich, AIG and Chubb now see new competitors in the market. Capacity is growing steadily, said Allnutt.

“Not only is cyber insurance a new product, it also offers a new source of premium revenue so there is considerable appetite for taking it on,” he added. “However, whilst most insurers are comfortable with the liability aspects of cyber risk; not all insurers are covering loss of income.”

Matt Kletzli, SVP and head of management liability, Victor O. Schinnerer & Company

Kletzli added that available products include several well-written, broad cyber coverages that take into account all types of potential cyber attack and don’t attempt to limit cover by applying a narrow definition of BI loss.

“It’s a rapidly-evolving coverage — and needs to be — in order to keep up with changing circumstances,” he said.

The good news, according to a Fitch report, is that the cyber loss ratio has been reduced to 45 percent as more companies buy cover and the market continues to expand, bringing down the size of the average loss.

“The bad news is that at cyber events, talk is regularly turning to ‘what will be the Hurricane Katrina-type event’ for the cyber market?” said Kletzli.

“What’s worse is that with hurricane losses, underwriters know which regions are most at risk, whereas cyber is a global risk and insurers potentially face huge aggregation.”


Nor is the advent of robotics and artificial intelligence (AI) necessarily cause for optimism. As Allnutt noted, while AI can potentially be used to decode malware, by the same token sophisticated criminals can employ it to develop new malware and escalate the ‘computer versus computer’ battle.

“The trend towards greater automation of business means that we can expect more incidents involving loss of income,” said Sané. “What’s possibly of greater concern is the sheer number of different businesses that can be affected by a single cyber attack and the cost of getting them up and running again quickly.

“We’re likely to see a growing number of attacks where the aim is to cause disruption, rather than demand a ransom.

“The paradox of cyber BI is that the more sophisticated your organization and the more it embraces automation, the bigger the potential impact when an outage does occur. Those old-fashioned businesses still reliant on traditional processes generally aren’t affected as much and incur smaller losses.” &

Graham Buck is editor of gtnews.com. He can be reached at riskletters.com.