2017 Risk All Star: Wallace Jones

Persistence Pays Off

Ashley Furniture was a $4 billion company when Wallace Jones came on board as director of global benefits and insurance in 2013. But its casualty insurance program was fragmented; there was no over-arching risk management strategy to unify it.

Wallace Jones, director, Global Benefits & Insurance, Ashley Furniture Industries

There was a lack of data around loss control and the performance of the various insurance programs.

“When I arrived, the data on our workers’ compensation program varied depending on who you asked,” Jones said. “We wanted to correct that and make sure everyone got the same data, and more frequent data.”

That data is now updated and shared once a week, while broader loss reviews take place monthly.

“Wallace understands how pieces of the puzzle fit together. He uses and understands analytics and can also explain them to his management team, which I don’t think most risk managers can do,” said Brianne Tounsley, account executive, Aon Risk Solutions.

Jones also observed an imbalance between risk retention and risk transfer.

“… As a $4 billion company, you have to consider where you can retain more of your risk,” Jones said. “I made it my mission  … to educate our senior leaders on the benefits and pitfalls of paying a lot of premium to transfer a lot of risk, versus taking on more of that risk and reducing premiums.”

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Improving the availability of data around program performance, increasing deductibles where appropriate, and strengthening loss control were all initiatives accomplished step-by-step. It took time to get the C-suite and finance team on board.

“I started communicating with senior management and our CEO to give them a better understanding of risk tolerance. I made sure we got the data needed to show the difference between the choices of insurance programs we had.”

Jones ultimately combined separate primary, excess and punitive damages coverage into one umbrella/excess program. He also identified the cost shifting occurring between workers’ comp and group health. In four years, the programs have transitioned to a $1 million retention for workers’ comp, general liability, and auto.

“I made it my mission … to educate our senior leaders on the benefits and pitfalls of paying a lot of premium to transfer a lot of risk, versus taking on more of that risk and reducing premiums.” — Wallace Jones, director, Global Benefits & Insurance, Ashley Furniture Industries

While exposures have increased by 27 percent to as much as 119 percent in some lines, the company’s total cost of risk has only increased by 6 percent. When compounded with exposure changes, it achieved overall pure premium reductions of 79 percent over the past three years.

“Wallace quickly moved from student to teacher in affecting some significant changes in how we look at risk and the related costs associated with premiums versus potential loss,” said Troy Muller, Vice President, Finance, Ashley Furniture Industries.

Retaining more risk necessitates a strong loss control program. Jones worked to improve the return-to-work program and give workers’ comp staff the resources to execute the program and service claims, hiring four new team members in that area.

“He’s always thinking of the long-term win, not just short-term success,” Tounsley said. &

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

See the complete list of 2017 Risk All Stars.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

This senior risk manager values his role in helping Varian Medical Systems support research and technologies in the fight against cancer.
By: | September 12, 2017 • 5 min read

R&I: What was your first job?

When I was 15 years old I had a summer job working for the city of Plentywood, mowing grass in the parks and ballfields, emptying garbage cans, hauling waste to the dump, painting crosswalk lines.  A great job for a teenager but I thought getting a college degree and working in an air-conditioned office would be a good plan long term.

R&I: How did you come to work in risk management?

I was enrolled in the University of Montana as a general business student, and I wanted to declare a more specialized major during my sophomore year. I was working for my dad at his insurance agency over the summer, and taking new agent training coursework on property/casualty risks in my spare time, so I had an appreciation for insurance. My dad suggested I research risk management for a career, and I transferred sight unseen to the University of Georgia to enroll in their risk management program. I did an internship as a senior with the risk management department at Sulzer Medica, and they offered me a full time job.

R&I: What could the risk management community be doing a better job of?

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We need to do a better job of saying yes. We tend to want to say no to many risks, but there are upside benefits to some risks. If we initiate a collaborative exercise with the risk owners — people who may have unique knowledge about that particular risk — and include a cross section of people from other corporate functions, you can do an effective job of taking the risk apart to analyze it, figure out a way to manage that exposure, and then reap the upside benefits while reducing the downside exposure. That can be done with new products and new service offerings, when there isn’t coverage available for a risk. It’s asking, is there anything we can do to reduce the risk without transferring it?

R&I: What emerging commercial risk most concerns you?

Cyber liability. There’s so much at stake and the bad guys are getting more resourceful every day. At Varian, our first approach is to try to make our systems and products more resilient, so we’re trying to direct resources to preventing it from happening in the first place. It’s a huge reputation risk if one of our products or systems were compromised, so we want to avoid that at all costs.

We need to do a better job of saying yes. We tend to want to say no to many risks, but there are upside benefits to some risks.

R&I: What insurance carrier do you have the highest opinion of?

I’ve worked with a number of great ones over the years. We’ve enjoyed a great property insurance relationship with Zurich. Their loss control services are very valuable to us. On the umbrella liability side, it’s been great partnering with companies like Swiss Re and Berkley Life Sciences because they’ve put in the time and effort to understand our unique risk exposures.

R&I: How much business do you do direct versus going through a broker?

One hundred percent through a broker. I view our broker as an extension of our risk management team. We benefit from each team member’s respective area of expertise and experience.

R&I: Is the contingent commission controversy overblown?

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I think so. The brokers were kind of villainized by Spitzer. I think it’s fair for brokers and insurers to make a reasonable profit, and if a portion of their profit came from contingent commissions, I’m fine with that. But I do appreciate the transparency and disclosure that came out as a result of the fiasco.

R&I: Are you optimistic about the US economy or pessimistic and why?

David Collins, Senior Manager, Risk Management, Varian Medical Systems Inc.

While we might be doing fine here in the U.S. from an economic perspective, the Middle East is a mess, and we’re living with nuclear threat from North Korea. But hope springs eternal, so I’m cautiously optimistic. I’m hoping saner minds prevail and our leaders throughout the world work together to make things better.

R&I: Who is your mentor and why?

My Dad got me started down the insurance and risk path. I’ve also been fortunate to work for or with a number of University of Georgia alumni who’ve been mentors for me. I’ve worked side by side with Karen Epermanis, Michael Rousseau, and Elisha Finney. And I’ve worked with Daniel Dean in his capacity as a broker.

R&I: What have you accomplished that you are proudest of?

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Raising my kids. I have a 15-year-old and 12-year-old, and they’re making mom and dad proud of the people they’re turning into.

On a professional level, a recent one would be the creation and implementation of our global travel risk program, which was a combined effort between security, travel and risk functions.

We have a huge team of service personnel around the world, traveling to customer sites to do maintenance and repair. We needed a way to track, monitor and communicate with them. We may need to make security arrangements or vet their lodging in some circumstances.

R&I: What do your friends and family think you do?

My 12-year-old son thought my job responsibilities could be summed up as a “professional worrier.” And that’s not too far off.

R&I: What about this work do you find the most fulfilling or rewarding?

Varian’s mission is to focus energy on saving lives. Proper administration of the risk function puts the company in a better position to financially support research that improves products and capabilities, helps to educate health care providers and support cancer care in general. It means more lives saved from a terrible disease. I’m proud to contribute toward that.

When you meet someone whose cancer has been successfully treated with one of our products, it’s a powerful reward.




Katie Siegel is an associate editor at Risk & Insurance®. She can be reached at [email protected]