Claims Executive

Seven Questions for Patrick J. Walsh

Consistently getting the fundamentals right is a key focus for York Risk Services' Patrick J. Walsh
By: | May 12, 2017 • 5 min read

Patrick J. Walsh recently joined York Risk Services Group as Executive Vice President, Chief Claims Officer, and President of Risk Management Practices. He is responsible for leading all of York’s national claims operations and providing direction and expertise in servicing York’s self-insured and deductible clients. Risk & Insurance sought his views on trends shaping the claims business and his goals in his new position.

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R&I: What’s your view on how to get the best out of claims handling talent?

PJW: I believe the secret is genuinely caring about the success and working environment of those with whom we work; and leading and acting every day with integrity, honesty, and transparency.  The constant churn and stress that comes with the claims role creates an interesting challenge for managers.  There’s almost a ‘negative foundation’ that adjusters, unit managers, case managers, etc., inherit when they step into these roles.  Leaders have a responsibility  to ensure people in these roles understand the incredible value they bring to the industry and how they can make or break the experience of customers, claimants, and other stakeholders.  In my view, claims professionals deliver the promise we make to our customers and they deserve our respect and support. They also deserve our honest, constructive feedback so that we can work together to develop the best possible work environment and support their individual and collective success.

R&I: What must a claims handling organization be more adept at now than it was, say, five years ago?

PJW: The obvious answer here is data.  Everybody talks about the importance of data and how it will drive our industry in the future and I agree with that perspective.   But for all the advances in technology and data science, we can’t overlook the importance of people in the claims process.  To succeed, companies need to be adept at identifying, hiring, training, and retaining employees, at all levels, who LOVE this industry.  I believe there is a lot of untapped talent out there and the company that is willing to invest intelligently in recruiting and training non-traditional sources will have a significant advantage in the future.

R&I: You’re clearly passionate about what you do. Talk about what you derive from insurance’s higher purpose, that it repairs people and property and tries to make them whole again.

PJW: I do love this business.  I love the fact that we help so many who are in need and that claims professionals get to deliver on the promise made to the someone by, for example, an employer or an insurer.  I get personal satisfaction from working with other insurance professionals who are interested in the well-being of their clients and claimants who are, after all, relying on us to help them recover when something terrible happens to them.  I’m proud to talk about what I do with my family, friends and people I meet.  While many like to tease about the ‘sleazy insurance guy’ I believe they know that our industry does so much good work and has a positive impact on individuals, companies and our economy.

Leaders have a responsibility  to ensure people in these roles understand the incredible value they bring to the industry and how they can make or break the experience of customers, claimants, and other stakeholders.

R&I: In this new position Patrick, what are key goals for you?

PJW: My focus is on three things that will ultimately deliver value to our many stakeholders.  First, build an environment that York associates can be proud of and that is focused on creating a great work experience for them.  Second, deliver an experience to our customers, claimants and other stakeholders, that is second-to-none.  Third, aspire to zero defects in our work product, because that allows our employees and customers to focus on innovation and more exciting ways to support our collective success.

R&I: What are some keys to maintaining York’s low employee turnover rate?

PJW: Low turnover is driven by a combination of good choices during the selection process, engaging employees from day one, training employees before we ask them to perform work on behalf of our clients, and delivering honest and constructive feedback on their performance that is focused on their individual success.   An organization’s employees are their greatest asset.  By focusing on their success I believe we create a much better experience for our customers.  And when customers are happy they engage more and develop relationships with our employees that deepen our partnership.   We want employees to enjoy their environment and their client relationships – when we reach that point, turnover becomes a very manageable issue.

R&I: What challenges do you see in this segment going forward? What will you have to get right over the next five years to achieve the successes you are after?

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PJW: While there are obviously lots of challenges I’ll concentrate on a couple of things.  First, we have to do the basics right ALL THE TIME.  We can deliver innovations and talk about cool new stuff but if we don’t do the little things and get the fundamentals right, none of that will matter.  Second, we have to continue to work with customers and their representatives to develop trust. Third, we need to reimagine processes to remove some of the barriers that add additional expense to risk management programs.

R&I: What’s the most difficult kind of claim to resolve? And what are some of the most trustworthy methods to resolve difficult claims?

PJW: This is an article in and of itself.   Regardless of how I answer the first part of this I’ll get beat up by people who handle other types of claims so I’ll simply say this….the most difficult kind of claim to resolve is the one where there’s simply too much emotion and the parties will not step back and look at the facts and reality of the situation.  This is when honesty, transparency, and sincerity come into the equation – those behaviors build trust.

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

More from Risk & Insurance

More from Risk & Insurance

Emerging Risks

Stadium Safety

Soft targets, such as sports stadiums, must increase measures to protect lives and their business.
By: | January 10, 2018 • 8 min read

Acts of violence and terror can break out in even the unlikeliest of places.

Look at the 2013 Boston Marathon, where two bombs went off, killing three and injuring dozens of others in a terrorist attack. Or consider the Orlando Pulse nightclub, where 49 people were killed and 58 wounded. Most recently in Las Vegas, a gunman killed 58 and injured hundreds of others.

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The world is not inherently evil, but these evil acts still find a way into places like churches, schools, concerts and stadiums.

“We didn’t see these kinds of attacks 20 years ago,” said Glenn Chavious, managing director, global sports & recreation practice leader, Industria Risk & Insurance Services.

As a society, we have advanced through technology, he said. Technology’s platform has enabled the message of terror to spread further faster.

“But it’s not just with technology. Our cultures, our personal grievances, have brought people out of their comfort zones.”

Chavious said that people still had these grievances 20 years ago but were less likely to act out. Tech has linked people around the globe to other like-minded individuals, allowing for others to join in on messages of terror.

“The progression of terrorist acts over the last 10 years has very much been central to the emergence of ‘lone wolf’ actors. As was the case in both Manchester and Las Vegas, the ‘lone wolf’ dynamic presents an altogether unique set of challenges for law enforcement and event service professionals,” said John

Glenn Chavious, managing director, global sports & recreation practice leader, Industria Risk & Insurance Services

Tomlinson, senior vice president, head of entertainment, Lockton.

As more violent outbreaks take place in public spaces, risk managers learn from and better understand what attackers want. Each new event enables risk managers to see what works and what can be improved upon to better protect people and places.

But the fact remains that the nature and pattern of attacks are changing.

“Many of these actions are devised in complete obscurity and on impulse, and are carried out by individuals with little to no prior visibility, in terms of behavioral patterns or threat recognition, thus making it virtually impossible to maintain any elements of anticipation by security officials,” said Tomlinson.

With vehicles driving into crowds, active shooters and the random nature of attacks, it’s hard to gauge what might come next, said Warren Harper, global sports & events practice leader, Marsh.

Public spaces like sporting arenas are particularly vulnerable because they are considered ‘soft targets.’ They are areas where people gather in large numbers for recreation. They are welcoming to their patrons and visitors, much like a hospital, and the crowds that attend come in droves.

NFL football stadiums, for example, can hold anywhere from 25,000 to 93,000 people at maximum capacity — and that number doesn’t include workers, players or other behind-the-scenes personnel.

“Attacks are a big risk management issue,” said Chavious. “Insurance is the last resort we want to rely upon. We’d rather be preventing it to avoid such events.”

Preparing for Danger

The second half of 2017 proved a trying few months for the insurance industry, facing hurricanes, earthquakes, wildfires and — unfortunately — multiple mass shootings.

The industry was estimated to take a more than $1 billion hit from the Las Vegas massacre in October 2017. A few years back, the Boston Marathon bombings cost businesses around $333 million each day the city was shut down following the attack. Officials were on a manhunt for the suspects in question, and Boston was on lockdown.

“Many of these actions are devised in complete obscurity and on impulse, and are carried out by individuals with little to no prior visibility.” — John Tomlinson, senior vice president, head of entertainment, Lockton

“Fortunately, we have not had a complete stadium go down,” said Harper. But a mass casualty event at a stadium can lead to the death or injury of athletes, spectators and guests; psychological trauma; potential workers’ comp claims from injured employees; lawsuits; significant reputational damage; property damage and prolonged business interruption losses.

The physical damage, said Harper, might be something risk managers can gauge beforehand, but loss of life is immeasurable.

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The best practice then, said Chavious, is awareness and education.

“A lot of preparedness comes from education. [Stadiums] need a risk management plan.”

First and foremost, Chavious said, stadiums need to perform a security risk assessment. Find out where vulnerable spots are, decide where education can be improved upon and develop other safety measures over time.

Areas outside the stadium are soft targets, said Harper. The parking lot, the ticketing and access areas and even the metro transit areas where guests mingle before and after a game are targeted more often than inside.

Last year, for example, a stadium in Manchester was the target of a bomb, which detonated outside the venue as concert-goers left. In 2015, the Stade de France in Paris was the target of suicide bombers and active shooters, who struck the outside of the stadium while a soccer match was held inside.

Security, therefore, needs to be ready to react both inside and outside the vicinity. Reviewing past events and seeing what works has helped risk mangers improve safety strategies.

“A lot of places are getting into table-top exercises” to make sure their people are really trained, added Harper.

In these exercises, employees from various departments come together to brainstorm and work through a hypothetical terrorist situation.

A facilitator will propose the scenario — an active shooter has been spotted right before the game begins, someone has called in a bomb threat, a driver has fled on foot after driving into a crowd — and the stadium’s staff is asked how they should respond.

“People tend to act on assumptions, which may be wrong, but this is a great setting for them to brainstorm and learn,” said Harper.

Technology and Safety

In addition to education, stadiums are ahead of the game, implementing high-tech security cameras and closed-circuit TV monitoring, requiring game-day audiences to use clear/see-through bags when entering the arena, upping employee training on safety protocols and utilizing vapor wake dogs.

Drones are also adding a protective layer.

John Tomlinson, senior vice president, head of entertainment, Lockton

“Drones are helpful in surveying an area and can alert security to any potential threat,” said Chavious.

“Many stadiums have an area between a city’s metro and the stadium itself. If there’s a disturbance there, and you don’t have a camera in that area, you could use the drone instead of moving physical assets.”

Chavious added that “the overhead view will pick up potential crowd concentration, see if there are too many people in one crowd, or drones can fly overhead and be used to assess situations like a vehicle that’s in a place it shouldn’t be.”

But like with all new technology, drones too have their downsides. There’s the expense of owning, maintaining and operating the drone. Weather conditions can affect how and when a drone is used, so it isn’t a reliable source. And what if that drone gets hacked?

“The evolution of venue security protocols most certainly includes the increased usage of unmanned aerial systems (UAS), including drones, as the scope and territorial vastness provided by UAS, from a monitoring perspective, is much more expansive than ground-based apparatus,” said Tomlinson.

“That said,” he continued, “there have been many documented instances in which the intrusion of unauthorized drones at live events have posed major security concerns and have actually heightened the risk of injury to participants and attendees.”

Still, many experts, including Tomlinson, see drones playing a significant role in safety at stadiums moving forward.

“I believe the utilization of drones will continue to be on the forefront of risk mitigation innovation in the live event space, albeit with some very tight operating controls,” he said.

The SAFETY Act

In response to the terrorist attacks on Sept. 11, 2001, U.S. Homeland Security enacted the Support Anti-Terrorism by Fostering Effective

Warren Harper, global sports & events practice leader, Marsh

Technologies Act (SAFETY Act).

The primary purpose of the SAFETY Act was to encourage potential manufacturers or sellers of anti-terrorism technologies to continue to develop and commercialize these technologies (like video monitoring or drones).

There was a worry that the threat of liability in such an event would deter and prevent sellers from pursing these technologies, which are aimed at saving lives. Instead, the SAFETY Act provides incentive by adding a system of risk and litigation management.

“[The SAFETY Act] is geared toward claims arising out of acts of terrorism,” said Harper.

Bottom line: It’s added financial protection. Businesses both large and small can apply for the SAFETY designation — in fact, many NFL teams push for the designation. So far, four have reached SAFETY certification: Lambeau Field, MetLife Stadium, University of Phoenix Stadium and Gillette Stadium.

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To become certified, reviewers with the SAFETY Act assess stadiums for their compliance with the most up-to-date terrorism products. They look at their built-in emergency response plans, cyber security measures, hiring and training of employees, among other criteria.

The process can take over a year, but once certified, stadiums benefit because liability for an event is lessened. One thing to remember, however, is that the added SAFETY Act protection only holds weight when a catastrophic event is classified as an act of terrorism.

“Generally speaking, I think the SAFETY Act has been instrumental in paving the way for an accelerated development of anti-terrorism products and services,” said Tomlinson.

“The benefit of gaining elements of impunity from third-party liability related matters has served as a catalyst for developers to continue to push the envelope, so to speak, in terms of ideas and innovation.”

So while attackers are changing their methods and trying to stay ahead of safety protocols at stadiums, the SAFETY Act, as well as risk managers and stadium owners, keep stadiums investing in newer, more secure safety measures. &

Autumn Heisler is a staff writer at Risk & Insurance. She can be reached at [email protected]