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Property Risk Insights Strengthen Resilience After Loss

Risk engineers help customers harden their assets against a variety of perils.
By: | November 2, 2016 • 5 min read

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Commercial property owners need to protect their assets, and a focus on resilience is an important way to mitigate property risks, advises Richard Montminy, head of property for Commercial Insurance, Zurich North America.

In this Perspectives presented by Zurich, he discusses marketplace trends and shares insights on property risk management.

What trends is Zurich seeing in 2016 in the property insurance marketplace?

The market is seeing an abundance of capacity, driven in part by the entry of new and alternative players in commercial insurance. These include non-traditional insurers, start-ups and investors seeking new opportunities. At the same time, we are continuing to see downward pressure on property rates. In the past, we used to describe the market cycles as “soft” or “hard,” but these aren’t really coming into play anymore; it’s just the market. The marked reduction in insured catastrophe losses has also been pressuring both insurance and reinsurance rates downward.

Zurich_SponsoredContent“Our risk engineers are equipped to help customers harden their assets against a variety of perils.”

– Richard Montminy, head of property, Commercial Insurance, Zurich North America

At the same time there has been a continued flow of attritional and large losses hitting the market, including most recently the Fort McMurray wildfires in western Canada. Even though these losses appear to be putting a slight damper on rate declines, the overabundance of capacity continues to drive the market that we have been experiencing in 2015 and into 2016. The challenge that insurers will face as we look forward is that the continued drawn-out downward pressure on rates across the property industry is creating an unhealthy market that is not sustainable over the long run.

How can commercial property insurers deliver value to retain profitable business in an environment of declining rates? How can you truly differentiate?

In a market where rates are declining, it can be tempting to seek the lowest price for coverage. But there are significant differences among insurance providers. At Zurich, we differentiate our value through our ability to give our customers insights to improve the resilience of their organizations. We’re constantly working with customers to build that into the infrastructure of their organizations so that they can regain their footing quickly after a loss. Zurich has more than 100 years of experience in delivering on our promises to customers in North America, and as a leading global insurance group we can help property owners manage their risks in more than 200 countries and territories. Risk insight, claims expertise, global reach, financial strength — these are just a few of the reasons why multinational corporations have chosen Zurich as their risk partner for many years. We provide value not just in the insurance policies we offer but also through the insights we deliver.

How does Zurich help property customers build resilience?

Our risk engineers are equipped to help customers harden their assets against a variety of perils. Zurich risk engineers work closely with customers to build business continuity plans, and to take steps before, during and after a loss. We bring not just a catastrophic perspective or a fire perspective but broad-based experience in mitigating a broad spectrum of risks. Our teams gain insights from working with customers in all industries, and we are able to share insights to help reduce property risks. For example, a company in the plastics industry acquired a peer with manufacturing processes somewhat different from our customer’s operations. Zurich had experience with a loss on similar exposures faced by another customer, and our engineer was able to share these insights. We showed the companies where they could build protection into their processes. In another instance, we engaged with a large hospitality company to show them how to build in protection to prevent water intrusion, which causes most of the damage in hurricanes. From securing rooftop equipment with cables to sloping balconies to encourage drainage to the proper glazing and support structure of windows to resist projectiles and breakage, Zurich helped this customer enhance its resilience. We have shown our customers that it’s possible to retrofit buildings but generally much cheaper to incorporate the proper design up-front. Many of our large customers have used our insights to implement changes in the design phase.

How important is it for insurers to make investments that help customers build resilience?

We want our customers to expect full engagement and attention from us. Zurich continues to invest heavily in our risk engineering group, to deliver insights and to ensure we’re keeping up with changes in building and industry standards. Our teams have been through catastrophe events many times, and we are able to advise customers on what they need to do in the first hour, the first week and month, etc., when a loss occurs. Zurich’s relationships with vendors enable us to help customers plan for generators and fuel, for example. We are making investments to strengthen our ability to help our customers think about and plan for resilience and recovery.

For more information about Zurich property solutions and risk insights, visit zurichna.com and the Zurich Virtual Literature Rack at zurichvlr.com.

This is intended as a general description of certain types of insurance and services available to qualified customers through the companies of Zurich in North America, provided solely for informational purposes. Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company, 1299 Zurich Way, Schaumburg, IL 60196.

Your policy is the contract that specifically and fully describes your coverage, terms and conditions. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Coverages and rates are subject to individual insured meeting our underwriting qualifications and product availability in applicable states. Some coverages may be written on a nonadmitted basis through licensed surplus lines brokers. Zurich does not guarantee any particular outcome and there may be conditions on your premises or within your organization, which may not be apparent to us. You are in the best position to understand your business and your organization and to take steps to minimize risk, and we wish to assist you by providing the information and tools to help you assess your changing risk environment. Risk engineering services are provided by The Zurich Services Corporation.

©2016 Zurich American Insurance Company

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Zurich. The editorial staff of Risk & Insurance had no role in its preparation.




Zurich Insurance Group, Ltd is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets.

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Risk Management

The Profession

Maila Aganon is the personification of the American dream. The vice president of treasury and risk for Caesars Entertainment Corp. immigrated from the Philippines and worked her way to the top.
By: | October 12, 2017 • 4 min read


R&I: What was your first job?

I actually had three first jobs at the same time at the age of 16. I worked as a cashier in a fast-food restaurant, a bank teller and a debt collector for an immigration law firm.

R&I: Who is your mentor and why?

I have a few. The first one would be the first risk manager I reported to. He taught me the technical part of the job, risk financing, captives and insurance. I am also privileged to be mentored by Lori Goltermann (CEO of U.S. Retail for Aon Risk Solutions).  From her I learned to be resilient and optimize life/work balance. Then of course I also have a circle of ladies at work who I lean in to!

R&I: How did you come to work in this industry?

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I was once a bank teller and had a client who was an insurance agent. He would come in every day to make deposits. One day, he offered me a job. He said, “How would you like to have your own desk, your own phone and your own computer?” And I said, “When do I start?” I worked for this personal lines insurance company for six years.

R&I: Did you take to it immediately?

Yes, I did sales, claims and insurance accounting. I left for a couple years and that is when AAA came calling, which was my first introduction to risk management. I didn’t know there was such a thing as commercial insurance. They called me and the pitch was “how would you like to run a captive insurance company?”

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

It is not so much the job but I say that I am the true product of the American Dream. I came to the U.S. when I was 16. I worked three jobs because I didn’t want to go to high school (She’d already graduated high school in the Philippines.) I spoke very little English, and due to hard work, grit and a great smile I’m now here working with all of you!

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

In movies, it is a toss-up between Gone with the Wind and Big Daddy.

R&I: What is your favorite drink?

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I like anything sweet. If you liquify a dessert that’s my perfect drink.

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

This is easy because I just got back from Barcelona on a side trip. I visited the Montserrat Monastery, which is a thousand-year old monastery. It was raining and foggy. I hiked for three hours and I didn’t see a single soul. It was a very peaceful place.

R&I: What is the riskiest activity you ever engaged in?

This is going back to working at a fast food chain when I was young. I worked in a very undesirable location in San Francisco. At 16 I used to negotiate with gang members so they wouldn’t rob me during my shift. I had to give them chicken so they wouldn’t rob me.

Maila Aganon, VP, Treasury and Risk, Caesars Entertainment Corp.

R&I: If the world has a modern hero, who is it and why? 

I can’t say me. They have to be my kids Kyle and Hailey. They can make me laugh and cry within a half-minute of each other. Kyle is 10, a perfect Mama’s boy. Hailey is seven going on 18.

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

I think the most fulfilling part is how you build relationships with people and then after a while they become your friends.

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

Risk managers do a great job of networking. They are number one. Which is not a surprise because the pillar of our work is building a relationship with underwriters, clients and brokers.

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

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I am experiencing that right now; talent.  We need to a better job in attracting and retaining talent. Nobody knows about what we do. You tell someone ‘I’m as risk manager’ and they give you a blank look. What does that mean?

We’re great marketers and we should use this skill set in attracting talent. We should engage our universities, our communities, even our yoga groups and talk to them about the exciting world of risk. It is an exciting career because there is nothing like it.

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

It would have to be the increasing cyber risk and the interdependency of systems.

R&I: What does your family think you do? 

I took my seven year old daughter once to an insurance event that had live music, dancing and drinks. She thinks that whenever I go to an insurance meeting, I’m heading to a party.




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