Risk Management

The Profession

Skanska USA Building’s VP of Insurance and Surety knows that sharing data helps combat risk of all kinds.
By: | September 14, 2016 • 4 min read

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R&I: What was your first job?

I was a financial analyst with Household Finance Corp. after graduating from college.

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

I was an accountant for a long time in the construction industry. Once I became a financial manager, that role started to take on some risk management responsibilities and sort of became a dual role. Then the opportunity came up to move to Skanska and do it full time, so that’s what I did.

R&I: What is the risk management community doing right?

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We’re taking a much more holistic view of risk instead of staying in silos, so it’s not just about insurance, it’s not just about financial risk, or any one thing. It’s about looking at the business holistically.

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

We could be doing a way better job of sharing data around both leading and lagging indicators of what’s driving risk decisions. We all have enough data to get an individual picture of how our businesses are doing, but we’re not sharing very well within the industry.

R&I: What was the best location and year for the RIMS conference and why?

I’ve never been to RIMS. I’ve always gone to IRMI. I would say San Diego has been the best location for that conference because of the great weather, which makes for a nice place for people to relax and get together. IRMI is usually in early November, and that time of year, not every location is nice. But in San Diego it’s almost always a nice day, and that makes people want to go out and meet each other.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

As a New York contractor, the biggest change has been the exposures in New York and emphasis on our industry there. It seems that now in construction there’s everywhere else, and then there’s New York; it’s become a separate entity.

Another change has been the sharing of risk between us and the insurance industry. When I came into the industry, we were leaving most of the risk with the insurer, and now we’re taking on much more of it ourselves and sharing it with carriers.

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

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Labor risk is huge. The subcontractor community is stretched very thin both in terms of labor and the number of projects that are out there. I know everyone wants to talk about cyber risk, but talent shortage is a more critical risk for our business right now. Everything else will fall apart if we don’t fix that problem first.

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

We do everything through a broker.

R&I: Is the contingent commission controversy overblown?

Yes. Even if a broker bundles up a bunch of policies, they still have to sell you what you need and the policy still has to do what it has to do. If bundling together a good policy over multiple clients gives them the ability to make a few extra dollars on it, I don’t have a problem with that. It just has to be transparent.  Transparency is what it comes down to.

R&I: Are you optimistic about the U.S. economy or pessimistic and why?

I’m cautiously optimistic. I think better days are ahead if we don’t overthink or overregulate ourselves.

R&I: Who is your mentor and why?

I couldn’t identify one person, but I do have a few folks that I rely on. I’m a strong believer that you need a variety of points of view.

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

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From a personal perspective, it’s raising four kids that so far — knock on wood — seem to be solid citizens.

R&I: What is your favorite book or movie?

I love science fiction and fantasy movies. I have not seen the new Star Trek yet, but that’s on my list.

R&I: What’s the best restaurant you’ve ever eaten at?

There are way too many in New York to choose just one.

R&I: What is the most unusual/interesting place you have ever visited?

Prague, in the Czech Republic. I was there for business and extended the trip. I’ve been to quite a few cities in Europe, and there’s usually some area that’s historic, and in Prague that area is much larger. It’s full of shops and restaurants and interesting sights.

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

Helping my folks on a day-to-day basis get through whatever roadblocks they encounter. I like to use my own expertise to help them move their day along and solve whatever problem is bogging them down.

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

As hard as I try, it’s tough for them to understand. Saying that I buy insurance isn’t really descriptive of what I do because it happens only occasionally. My son is a civil engineer, so he understands parts of it. I’m really working hard with my three daughters to get them interested in the construction business, because there are so many things you can do.




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

More from Risk & Insurance

More from Risk & Insurance

2017 Teddy Awards

The Era of Engagement

The very best workers’ compensation programs are the ones where workers aren’t just the subject of the program, they’re a part of it.
By: | November 1, 2017 • 5 min read

Employee engagement, employee advocacy, employee participation — these are common threads running through the programs we honor this year in the 2017 Theodore Roosevelt Workers’ Compensation and Disability Management Awards, sponsored by PMA Companies.

A panel of judges — including workers’ comp executives who actively engage their own employees — selected this year’s winners on the basis of performance, sustainability, innovation and teamwork. The winners hail from different industries and regions, but all make people part of the solution to unique challenges.

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Valley Health System is all-too keenly aware of the risk of violence in health care settings, running the gamut from disruptive patients to grieving, overwrought family members to mentally unstable active shooters.

Valley Health employs a proactive and comprehensive plan to respond to violent scenarios, involving its Code Atlas Team — 50 members of the clinical staff and security departments who undergo specialized training. Valley Health drills regularly, including intense annual active shooter drills that involve participation from local law enforcement.

The drills are unnerving for many, but the program is making a difference — the health system cut its workplace violence injuries in half in the course of just one year.

“We’re looking at patient safety and employee safety like never before,” said Barbara Schultz, director of employee health and wellness.

At Rochester Regional Health’s five hospitals and six long-term care facilities, a key loss driver was slips and falls. The system’s mandatory safety shoe program saw only moderate take-up, but the reason wasn’t clear.

Rather than force managers to write up non-compliant employees, senior manager of workers’ compensation and employee safety Monica Manske got proactive, using a survey as well as one-on-one communication to suss out the obstacles. After making changes based on the feedback, shoe compliance shot up from 35 percent to 85 percent, contributing to a 42 percent reduction in lost-time claims and a 46 percent reduction in injuries.

For the shoe program, as well as every RRH safety initiative, Manske’s team takes the same approach: engaging employees to teach and encourage safe behaviors rather than punishing them for lapses.

For some of this year’s Teddy winners, success was born of the company’s willingness to make dramatic program changes.

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Delta Air Lines made two ambitious program changes since 2013. First it adopted an employee advocacy model for its disability and leave of absence programs. After tasting success, the company transitioned all lines including workers’ compensation to an integrated absence management program bundled under a single TPA.

While skeptics assume “employee advocacy” means more claims and higher costs, Delta answers with a reality that’s quite the opposite. A year after the transition, Delta reduced open claims from 3,479 to 1,367, with its total incurred amount decreased by $50.1 million — head and shoulders above its projected goals.

For the Massachusetts Port Authority, change meant ending the era of having a self-administered program and partnering with a TPA. It also meant switching from a guaranteed cost program to a self-insured program for a significant segment of its workforce.

Massport’s results make a great argument for embracing change: The organization saved $21 million over the past six years. Freeing up resources allowed Massport to increase focus on safety as well as medical management and chopped its medical costs per claim in half — even while allowing employees to choose their own health care providers.

Risk & Insurance® congratulates the 2017 Teddy Award winners and holds them in high esteem for their tireless commitment to a safe workforce that’s fully engaged in its own care. &

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More coverage of the 2017 Teddy Award Winners and Honorable Mentions:

Advocacy Takes Off: At Delta Air Lines, putting employees first is the right thing to do, for employees and employer alike.

 

Proactive Approach to Employee SafetyThe Valley Health System shifted its philosophy on workers’ compensation, putting employee and patient safety at the forefront.

 

Getting It Right: Better coordination of workers’ compensation risk management spelled success for the Massachusetts Port Authority.

 

Carrots: Not SticksAt Rochester Regional Health, the workers’ comp and safety team champion employee engagement and positive reinforcement.

 

Fit for Duty: Recognizing parallels between athletes and public safety officials, the city of Denver made tailored fitness training part of its safety plan.

 

Triage, Transparency and TeamworkWhen the City of Surprise, Ariz. got proactive about reining in its claims, it also took steps to get employees engaged in making things better for everyone.

A Lesson in Leadership: Shared responsibility, data analysis and a commitment to employees are the hallmarks of Benco Dental’s workers’ comp program.

 

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]