Column: Roger's Soapbox

Heroes, Seen and Unseen

By: | November 1, 2013 • 3 min read
Roger Crombie is a United Kingdom-based columnist for Risk & Insurance®. He can be reached at [email protected]

Recently, I moved from London to a small town on the south coast of England called Eastbourne. It’s a retirement community, akin to Florida but without the sun, sand (the beaches are pebbles) or cocaine proceeds that have fueled Miami’s growth.

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The other day, two men in crash helmets were peering into my living room window. Nothing very unusual there, I suppose. Except that perverts rarely wear crash helmets, I’m guessing.

Because of the enhanced real estate values in a giant metropolis such as London, I was able to swap a modest 750-square-foot apartment in social housing for something rather grander: a giant penthouse, hard on the English Channel. My nearest neighbor to the south is France.

My new abode is a glorious folly, absurdly flashy and even slightly regal. My ‘Bourne Identity’ is that of king.

The apartment is on the ninth floor, which for reasons best known to themselves, the British refer to as the eighth floor. One would think that, on that basis, the first floor should be called the zeroth floor and the ninth should perhaps be known as the sky floor, but it seems logic is not applied in such matters.

The apartment is as far into the heavens as a man may climb in Eastbourne, which made the spectre of two men in crash helmets peering in, well … something of an anomaly, to say the least.

Were they 80 feet tall? On stilts? Superman and the Green Lantern on patrol?

They were, in fact, supermen of a sort. They were officers of the East Sussex Fire and Rescue Service. They were perched, rather precariously, I thought, atop an aerial ladder, an extending metal pole thingie, a new piece of kit being tested on Eastbourne’s tallest building. My building, that is.

Wobbling all the way, they roamed around the space between my building and the one next door.

From time to time, they stopped so close to (ahem) one of my balconies that we were able to have a pleasant chat. They reluctantly turned down the offer of a cup of tea because their boss was keeping an eye on them from the zeroth floor.

I have nothing but respect for firemen. The word “heroes” barely begins to describe them. Not just because they rush into burning buildings to save children and cats, if the movies are to be believed, but because they wobble around in a steel box 80 feet off the ground in case some old fool like me accidentally sets fire to his home and then can’t get out.

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It struck me later that firemen fulfill a role exactly analogous to that of insurers: They take on the risks that no one else wants to carry. If your building burns down and you’re fried to a crisp, all the insurance in the world won’t make any difference.

Despite the dangers, firemen help you avoid that fate, so that you may cash in on the insurance.

Yet, where firemen are rightly regarded as heroes, insurers tend not to be. At best, they are considered, as someone said recently, staid. But when catastrophe strikes, we turn to firemen as well as insurers to seek relief.

Maybe it would help their image if insurers wore fluorescent orange jackets instead of boring suits. An aerial ladder outside every insurance office? It might be worth a shot.

More from Risk & Insurance

More from Risk & Insurance

2018 Risk All Stars

Stop Mitigating Risk. Start Conquering It Like These 2018 Risk All Stars

The concept of risk mastery and ownership, as displayed by the 2018 Risk All Stars, includes not simply seeking to control outcomes but taking full responsibility for them.
By: | September 14, 2018 • 3 min read

People talk a lot about how risk managers can get a seat at the table. The discussion implies that the risk manager is an outsider, striving to get the ear or the attention of an insider, the CEO or CFO.

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But there are risk managers who go about things in a different way. And the 2018 Risk All Stars are prime examples of that.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Goodyear’s Craig Melnick had only been with the global tire maker a few months when Hurricane Harvey dumped a record amount of rainfall on Houston.

Brilliant communication between Melnick and his new teammates gave him timely and valuable updates on the condition of manufacturing locations. Melnick remained in Akron, mastering the situation by moving inventory out of the storm’s path and making sure remediation crews were lined up ahead of time to give Goodyear its best leg up once the storm passed and the flood waters receded.

Goodyear’s resiliency in the face of the storm gave it credibility when it went to the insurance markets later that year for renewals. And here is where we hear a key phrase, produced by Kevin Garvey, one of Goodyear’s brokers at Aon.

“The markets always appreciate a risk manager who demonstrates ownership,” Garvey said, in what may be something of an understatement.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Dianne Howard, a 2018 Risk All Star and the director of benefits and risk management for the Palm Beach County School District, achieved ownership of $50 million in property storm exposures for the district.

With FEMA saying it wouldn’t pay again for district storm losses it had already paid for, Howard went to the London markets and was successful in getting coverage. She also hammered out a deal in London that would partially reimburse the district if it suffered a mass shooting and needed to demolish a building, like what happened at Sandy Hook in Connecticut.

2018 Risk All Star Jim Cunningham was well-versed enough to know what traditional risk management theories would say when hospitality workers were suffering too many kitchen cuts. “Put a cut-prevention plan in place,” is the traditional wisdom.

But Cunningham, the vice president of risk management for the gaming company Pinnacle Entertainment, wasn’t satisfied with what looked to him like a Band-Aid approach.

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Instead, he used predictive analytics, depending on his own team to assemble company-specific data, to determine which safety measures should be used company wide. The result? Claims frequency at the company dropped 60 percent in the first year of his program.

Alumine Bellone, a 2018 Risk All Star and the vice president of risk management for Ardent Health Services, faced an overwhelming task: Create a uniform risk management program when her hospital group grew from 14 hospitals in three states to 31 hospitals in seven.

Bellone owned the situation by visiting each facility right before the acquisition and again right after, to make sure each caregiving population was ready to integrate into a standardized risk management system.

After consolidating insurance policies, Bellone achieved $893,000 in synergies.

In each of these cases, and in more on the following pages, we see examples of risk managers who weren’t just knocking on the door; they were owning the room. &

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Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, clarity of vision and passion.

See the complete list of 2018 Risk All Stars.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]