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Aspen Insurance

Aspen Insurance is a business segment of Aspen Insurance Holdings Limited. It provides insurance for property, casualty, marine, energy and transportation, financial and professional lines, and programs business.

Sponsored: Aspen Insurance

The Embedded Risk Engineer

Risk engineers help stay ahead of emerging risks by working directly with underwriters and insureds.
By: | October 1, 2014 • 6 min read
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Not long ago, concepts such as solar panels, nanotechnology, battery-powered electric vehicles and “green” buildings were more pipe dream than reality. Today, with those trends a growing part of the global marketplace, insurers need ongoing, in-depth, real-time data for optimal underwriting in order to give buyers proper coverage and accurate pricing.

As one leader of Aspen Insurance’s loss control risk engineering team, Troy Bickerstaff knows better than most the value of staying ahead of the curve when it comes to emerging trends and their potential impact on insurance buyers.

“Our underwriters at Aspen Insurance are plugged into what’s happening with today’s exciting technology developments,” Bickerstaff said. “By using specialized, dedicated risk engineers to deliver unparalleled support to our underwriting teams, we can meet emerging marketplace needs. For insureds in these areas, the result is the best possible approach to risk management, insurance programs and pricing.”

SponsoredContent_Aspen“We evaluate all possible hazards, including the insured’s quality management system, their safety and quality standards, their recall process – anything and everything that goes into their product. Then, we advise the underwriters during the application process.”
— Troy Bickerstaff, Assistant Vice President and Loss Control Manager, Aspen Insurance

Aspen Insurance utilizes a concept by which an underwriting team includes an embedded engineer who works closely with the team’s underwriters and clients. This dedicated professional focuses on supporting the team in meeting the specific needs of a client and continually advises on the evolution of emerging risks associated within the team’s industry vertical.

Bickerstaff explained that Aspen Insurance’s risk engineering approach differs from other carriers that typically offer a centralized loss control/engineering department, primarily because they provide a general approach to support of underwriting.

“The difference in the various approaches to risk engineering is similar to specialization in medicine. If you need open-heart surgery, would you want a general surgeon or a cardiothoracic surgeon?” he asked. “Similarly, if your business faces specialized risks, you need the deep expertise of underwriters and engineers well-versed in the nuances of your industry.”

Bickerstaff and his colleagues support the underwriting teams across Aspen Insurance in four key ways:

Evaluating individual risk

To best understand a potential insured’s risk portfolio, the Aspen Insurance team reviews each new submission along with an applicant’s website, history of product recall and compliance with industry standards, in addition to certifications to assess what types of exposures may emerge. Bickerstaff noted that Aspen Insurance’s claims team is also involved in this process, including in respect of all risk engineering communications with the underwriting team. This tight collaboration between underwriting, engineering and claims is a key differentiator for Aspen US Insurance in the market.

If a new technology is part of a coverage application submission, Bickerstaff will also launch an engineering review of the risk, delivering valuable information to the underwriters, who in turn can utilize the data to help insureds find ways to improve their products and potentially reduce expensive product liability exposures, and possibly even claims.

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SponsoredContent_AspenWhen a company looking to import foreign-made tires applied for coverage, Bickerstaff created a document outlining all the major “key points for casualty,” including factors such as improper curing, use of over-aged rubber and contaminants in the tire itself. Underwriters then used that report with the potential insured, helping them avoid any potential pitfalls in importing foreign-made tires.

“We evaluate all possible hazards, including the insured’s quality management system, their safety and quality standards, their recall process – anything and everything that goes into their product,” he said. “Then, we advise the underwriters during the application process.”

Conducting a class of risk consultation

Based on underwriting submission trends or individual risks, the risk engineering team often identifies red flags with certain exposures and prepare detailed “guide sheets” outlining key information about the overall risk to support the analysis of underwriting teams.

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SponsoredContent_AspenBickerstaff created two such guide sheets related to electric vehicles, an emerging, popular alternative to gas-powered vehicles. One guide sheet detailed specific fire hazards associated with electric vehicles (higher voltage, weight distribution and battery blockage), while the other focused on specific fire hazards associated with the lithium ion (Li-Ion) batteries used to power electric vehicles, including ways to mitigate associated risks. Both guide sheets proved helpful to companies looking for coverage who manufactured both Li-Ion batteries and electric cars.

“We undertake a very detailed analysis for insureds in which we typically outline the kinds of claims that could happen, the severity, and what measures an insured would need to have in place to proactively minimize claims scenarios. This additional level of risk analysis is something insureds really value and appreciate.”

Evaluating long-term exposures

As a natural extension of the risk consultation effort, Bickerstaff also conducts long-term research and keeps abreast of different types of exposures through monitoring various media and publications, attending lectures and maintaining research contacts on the academic level. Insureds use Bickerstaff’s research to strengthen their loss control efforts, thereby potentially reducing claims and, as a result, keep overall costs down.

“For areas such as nanotechnology or ‘green’ buildings, we conduct research and create guide sheets,” he said. “But we also constantly stay abreast of the long-term aspects of the risks in those areas, keeping up with industry changes and the evolution of specific technologies”.

Providing added risk management expertise directly to insureds

Finally, the risk engineering group provides additional support for insureds via a face-to-face policyholder consultation at the insured’s location, if necessary.

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SponsoredContent_AspenBickerstaff visited a commercial lawnmower manufacturer and identified several cost-saving enhancement opportunities: guidance on contractual wordings, recommendations for strengthening the weldment inspection program and education on managing increased liability exposures due to the use of temporary workers during the company’s peak manufacturing season. As a result, with that added data, the insured was able to reduce costs and potential claims.

“Among the many advantages we offer to insureds, a key benefit we offer is to ensure that our underwriting is based on the underwriters’ full knowledge of the risk, including access to the best available, most accurate data about the unique exposures relevant to the industry, technology, or niche,” Bickerstaff said, adding that the engineering team’s expertise helps underwriters deliver the best possible outcome, but even more importantly, Aspen Insurance’s specialized, integrated risk engineering strategy ultimately benefits the insured.

“The difference in the various approaches to risk engineering is similar to specialization in medicine. If you need open-heart surgery, would you want a general surgeon or a cardiothoracic surgeon? Similarly, if your business faces specialized risks, you need the deep expertise of underwriters and engineers well-versed in the nuances of your industry.”

“Insureds can feel comfortable and confident they are buying a high-quality, value-added, fairly priced product to meet their specific needs,” he said. “With many of these new, emerging risks, that is a critical benefit to them and a competitive advantage for us.”

To learn more about how Aspen Insurance’s loss control risk engineering and underwriting teams can support your organization, contact your broker.

Troy Bickerstaff, Assistant Vice President and Loss Control Manager at Aspen Insurance, can be reached at troy.bickerstaff@aspen-insurance.com.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Aspen Insurance. The editorial staff of Risk & Insurance had no role in its preparation.
This article is provided for news and information purposes only and does not necessarily represent Aspen’s views and does constitute legal advice. This article reflects the opinion of the author at the time it was written taking into account market, regulatory and other conditions at the time of writing which may change over time. Aspen does not undertake a duty to update the article.

Aspen Insurance is a business segment of Aspen Insurance Holdings Limited. It provides insurance for property, casualty, marine, energy and transportation, financial and professional lines, and programs business.
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Sponsored: Aspen Insurance

A Modern Claims Philosophy: Proactive and Integrated

Aspen Insurance views the expertise and data of their claims professionals as a valuable asset.
By: | August 3, 2014 • 4 min read
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According to some experts, “The best claim is the one that never happens.”

But is that even remotely realistic?

Experienced risk professionals know that in the real world, claims and losses are inevitable. After all, it’s called Risk Management, not Risk Avoidance.

And while no one likes losses, there are rich lessons to be gleaned from the claims management process. Through careful tracking and analysis of losses, risk professionals spot gaps in their risk control programs and identify new or emerging risks.

Aspen Insurance embraces this philosophy by viewing the data and expertise of their claims operation as a valuable asset. Unlike more traditional carriers, Aspen Insurance integrates their claims professionals into all of their client work – from the initial risk assessment and underwriting process through ongoing risk management consulting and loss control.

This proactive and integrated approach results in meaningful reductions to the frequency and severity of client losses. But when the inevitable does happen, Aspen Insurance claims professionals utilize their established understanding of client risks and operations to produce some truly amazing solutions.

“I worked at several of the most well known and respected insurance companies in my many years as a claims executive. But few of them utilize an approach that is as innovative as Aspen Insurance,” said Stephen Perrella, senior vice president, casualty claims, at Aspen Insurance.

SponsoredContent_Aspen“We do a lot of trending and data analysis to provide as much information as possible to our clients. Our analytics can help clients improve upon their own risk management procedures.”
— Stephen Perrella, Senior Vice President, Casualty Claims, Aspen Insurance

Utilizing claims expertise to improve underwriting

Acting as adviser and advocate, Aspen integrates the entire process under a coverage coordinator who ensures that the underwriters, claims and insureds agree on consistent, clear definitions and protocols. With claims professionals involved in the initial account review and the development of form language, Aspen’s underwriters have a full sense of risks so they can provide more specific and meaningful coverage, and identify risks and exclusions that the underwriter might not consider during a routine underwriting process.

“Most insurers don’t ever want to talk about claims and underwriting in the same sentence,” said Perrella. “That archaic view can potentially hurt the insurance company as well as their business partners.”
SponsoredContent_AspenSponsoredContent_AspenAspen Insurance considered a company working on a large bridge refurbishment project on the West Coast as a potential insured, posing the array of generally anticipated construction-related risks. During underwriting, its claims managers discovered there was a large oil storage facility underneath the bridge. If a worker didn’t properly tether his or her tools, or a piece of steel fell onto a tank and fractured it, the consequences would be severe. Shutting down a widely used waterway channel for an oil cleanup would be devastating. The business interruption claims alone would be astronomical.

“We narrowed the opportunity for possible claims that the underwriter was unaware existed at the outset,” said Perrella.

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Risk management improved

Claims professionals help Aspen Insurance’s clients with their risk management programs. When data analysis reveals high numbers of claims in a particular area, Aspen readily shares that information with the client. The Aspen team then works with the client to determine if there are better ways to handle certain processes.

“We do a lot of trending and data analysis to provide as much information as possible to our clients,” said Perrella. “Our analytics can help clients improve upon their own risk management procedures.”
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SponsoredContent_AspenFor a large restaurant-and-entertainment group with locations in New York and Las Vegas, Aspen’s consultative approach has been critical. After meeting with risk managers and using analytics to study trends in the client’s portfolio, Aspen learned that the sheer size and volume of customers at each location led to disparate profiles of patron injuries.

Specifically, the organization had a high number of glass-related incidents across its multiple venues. So Aspen’s claims and underwriting professionals helped the organization implement new reporting protocols and risk-prevention strategies that led to a significant drop in glass-related claims over the following two years. Where one location would experience a disproportionate level of security assault or slip & fall claims, the possible genesis for those claims was discussed with the insured and corrective steps explored in response. Aspen’s proactive management of the account and working relationship with its principals led the organization to make changes that not only lowered the company’s exposures, but also kept patrons safer.

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World-class claims management

Despite expert planning and careful prevention, losses and claims are inevitable. With Aspen’s claims department involved from the earliest stages of risk assessment, the department has developed world-class claims-processing capability.

“When a claim does arrive, everyone knows exactly how to operate,” said Perrella. “By understanding the perspectives of both the underwriters and the actuaries, our claims folks have grown to be better business people.

“We have dramatically reduced the potential for any problematic communication breakdown between our claims team, broker and the client,” said Perrella.
SponsoredContent_AspenSponsoredContent_AspenA fire ripped through an office building rendering it unusable by its seven tenants. An investigation revealed that an employee of the client intentionally set the fire. The client had not purchased business interruption insurance, and instead only had coverage for the physical damage to the building.

The Aspen claims team researched a way to assist the client in filing a third-party claim through secondary insurance that covered the business interruption portion of the loss. The attention, knowledge and creativity of the claims team saved the client from possible insurmountable losses.

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Modernize your carrier relationship

Aspen Insurance’s claims philosophy is a great example of how this carrier’s innovative perspective is redefining the underwriter-client relationship. Learn more about how Aspen Insurance can benefit your risk management program at http://www.aspen.co/insurance/.

Stephen Perrella, Senior Vice President, Casualty, can be reached at Stephen.perrella@aspen-insurance.com.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Aspen Insurance. The editorial staff of Risk & Insurance had no role in its preparation.
This article is provided for news and information purposes only and does not necessarily represent Aspen’s views and does constitute legal advice. This article reflects the opinion of the author at the time it was written taking into account market, regulatory and other conditions at the time of writing which may change over time. Aspen does not undertake a duty to update the article.


Aspen Insurance is a business segment of Aspen Insurance Holdings Limited. It provides insurance for property, casualty, marine, energy and transportation, financial and professional lines, and programs business.
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Sponsored: Aspen Insurance

Minimize the Risks of Client Lawsuits

Approach client communications as if you were writing directly to a future jury. If a client ever sues, it could save the day.
By: | April 7, 2014 • 4 min read
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When a top litigator prepares a case for a trial, part of the process is mapping out a clear, written story to put in front of a jury. Professionals looking to avoid or minimize the impact of client lawsuits would be smart to follow that lead, according to Christopher Piety, underwriting counsel, Professional Lines Risk Management, Aspen Insurance.

“Just like when a talented lawyer faces a jury, the better prepared you are, the stronger your case will be and the more likely you will prevail,” Piety said. “That means being very clear when writing an email or a letter to a client. Approach these communications as if you were writing directly to a future jury.”

Piety explained that in the wake of several recent sizeable professional liability claims, lawyers and other professionals (i.e., accountants, architects and engineers) must deliver clear, concise written communications, to create a record of what happened along the way. “On some of the larger claims that I’ve been involved in, whether it is with lawyers, accountants, architects or engineers, it really boils down to managing client expectations. And to do that requires effective written documentation,” he said.

For example, Piety said that in a recent professional liability claim, a lawyer did nothing wrong other than failing to put into writing advice that the circumstances of the client’s case changed, which typically translates to an added risk that the desired outcome may not be achieved.

SponsoredContent_Aspen“When you write an email or letter, it’s critical to include specifics. It will go a long way to avoid potential trouble, especially if the situation ends up in court,” Piety said. “A good defense is a strong offense.”
— Christopher Piety, underwriting counsel, Professional Lines Risk Management, Aspen Insurance

“The attorney didn’t spell out in writing that the evidence no longer supported the client’s seven-figure expected outcome,” Piety said. The client eventually dropped the case and then sued the lawyer for malpractice, claiming that the attorney’s failures cost them a positive result. Without written documentation advising the client about the risks, the attorney could not prove the client had been advised.

Screen for Bad Apples

“Professionals need the courage to ‘fire’ a potential problem client should any serious red flags emerge,” Piety said. “Not every piece of business is a good one.” Along those lines, he offered a few bits of advice to avoid potential problems when choosing clients:

  • Obvious Red Flag: A potential client that “burned through” multiple professional services firms. Worse, have they sued any of them?
  • Reputation Check: After completing a credit check and/or litigation search, research the potential client’s reputation in the local business community.
  • Financial Stability: Check to see if the client is financially sound.  Sometimes, problem clients manage to transfer their financial problems to their professionals in the form of unpaid fees and/or malpractice claims.
  • Available Staff: Make sure your firm is prepared and staffed to properly do the work requested.

Clarity is Critical

“When you write an email or letter, it’s critical to include specifics. It will go a long way to avoid potential trouble, especially if the situation ends up in court,” Piety said. “A good defense is a strong offense.”

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Professionals need to carefully detail the scope of work when starting a new project or case, particularly if the client is also new. From a risk management perspective, it’s most critical to completely outline limitations and risks.

In addition, specific risks to various types of professionals may include:

  • Law Firms: Never offer guarantees for specific results, and understand that silence can be interpreted by a jury as agreeing with a client’s unrealistic expectations.
  • Architects and Engineers: Specify what you will and will not be responsible for. Never agree to indemnify anyone outside the firm.
  • Accountants: Advise clients and others using your work that attest engagements only provide limited assurance of no material misstatement in the financials, but do not guarantee the absence of fraud or financial problems with the attest client’s business.

Communicate Frequently

“Throughout the entire business relationship, it’s a good idea to document any ongoing changed circumstances, no matter how seemingly small, and advise clients of any new related risks and/or performance limitations,” Piety said. He outlined these examples:

  • Accountants: Quickly advise clients in writing when the client’s own poor record-keeping is causing the audit work to be more expensive and/or creating risk of material misstatement requiring additional client action.
  • Lawyers: Advise clients in writing when discovering evidence that may potentially change the value of the case.
  • Architects and Engineers: Communicate in writing when change orders on a project require expensive design changes that may negatively impact the overall project budget.

“Just like when a talented lawyer faces a jury, the better prepared you are, the stronger your case will be and the more likely you will prevail. That means being very clear when writing an email or a letter to a client. Approach these communications as if you were writing directly to a future jury.”

Act Promptly

Piety said the failure to act quickly often causes confusion, which can in turn lead to unnecessary and unforeseen problems. To stop that from occurring, he offered these insights:

  • Communicate immediately, via writing, any emerging issues that affect a client’s expectations and your ability to meet them.
  • Clients who fail to pay in a timely manner or seem unhappy early on in the relationship probably have an issue that should be addressed immediately.

In the end, only by having a clear written record of what actually occurred can professionals ensure they will reduce, or even prevent, the threat of a claim. Do not give your future opponent an opportunity to fill in the gaps with their own version of reality designed to sway a jury against you.

“Always focus on the fundamentals because fundamentals are what will really help a defense,” Piety concluded. “In so many cases, written communication will prove to be the critical factor between winning and losing.”

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Aspen Insurance. The editorial staff of Risk & Insurance had no role in its preparation.
This article is provided for news and information purposes only and does not necessarily represent Aspen’s views and does constitute legal advice. This article reflects the opinion of the author at the time it was written taking into account market, regulatory and other conditions at the time of writing which may change over time. Aspen does not undertake a duty to update the article.


Aspen Insurance is a business segment of Aspen Insurance Holdings Limited. It provides insurance for property, casualty, marine, energy and transportation, financial and professional lines, and programs business.
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