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HOW WE HELP YOU THRIVE Unlock your full potential with The Institutes CPCU Society by your side. Expand your network, grow as a leader, and become the most informed member of your team. NETWORKING Grow your professional community with instant access to our online network, member directory, Mentor Match program, and volunteer opportunities. Elevate your experience with exclusive member discounts on Society events, including In2Risk®, In2Leadership, and more! Members enjoy the best rates for all Society events. LEADERSHIP Enhance your skills with leadership, volunteer, and engagement opportunities through your local Society chapter and eight special interest groups. Share your expertise and become a thought leader by contributing to discussions, articles, webinars, and initiatives that shape the future of risk management and insurance. EDUCATION Empower yourself with unlimited access to free monthly webinars; our new on-demand Learning Library; and a complimentary subscription to Insights, our quarterly professional journal. Plus enjoy a free quarterly online course from The Institutes Knowledge Group. Explore all your benefits at CPCUSociety.org and renew your membership to continue growing and thriving with us! CPCUSociety.org | MemberResources@TheInstitutes.org | (800) 932-2728 In2Risk is a registered trademark of The Society of Chartered Property and Casualty Underwriters, Inc. Rena Strohmeier MBA, CPCU, AIC Member since 2015Volume 11, Issue 3 See your content featured in an upcoming issue of Insights! Learn more at CPCUSociety.org/Insights. AI: Beyond the Hype 6 Post-Claim Underwriting: The Intersection of Claims, Litigation, and Underwriting by Nick Lamparelli, Robert S. Stickley, and Connor J. Thomson page 15 Parametric Insurance: Filling the Protection Gap by Benjamin LeBlanc page 21 Uncovering Training Trends in the Insurance Industry by Ruth E. Phillips page 28 The Effect of Cultural Fit in Mergers and Acquisitions by David F. Brauer and David B. Brauer page 36 CPCU View Improving Insurance in Ghana Through Globalization: How the CPCU Society Can Help by Justice Peprah Agyei page 42 Committee Corner Top 5 Takeaways from the Reinsurance & Excess Surplus Lines Symposium by Glenn Leung page 46 by Franklin Manchester Sidebars AI: On Theory by Chris Parrish page 10 Tackling the Legal Angle, With Help From L&R by Michael Lengel and Maria Reinmann page 12The Institutes CPCU Society offers its appreciation and extends sincere thanks to the Legal & Regulatory Interest Group, Reinsurance & Excess Surplus Lines Interest Group Committee, and Student Action Committee, which contributed to this issue of Insights. THANK YOU! The Institutes CPCU Society is a motivated community of risk management and insurance professionals committed to lifelong learning and the highest ethical standards. Society membership supports all professionals on their unique paths, including pursuit of the CPCU® designation, additional Institutes designations, and other personal and professional development goals. To learn more about the CPCU Society, visit CPCUSociety.org. Statements of fact and opinion are the responsibility of the authors alone and do not imply an opinion on the part of officers, individual members, or staff of the CPCU Society. © 2024, The Society of Chartered Property and Casualty Underwriters, Inc. CPCU is a registered trademark of The Institutes Designations, LLC. In2Risk is a registered trademark of The Society of Chartered Property and Casualty Underwriters, Inc. Digital issues of Insights magazine are available on the CPCU Society website at CPCUSociety.org/ Insights. To view, please be sure to log in with your CPCU Society member credentials. Insights Online Editing Team Janet Levy Christine Reisinger Anne Swigart Laura Toops Design Team Daniel Colon Paul Illian Jeannie Ingiosi Chris Long Emily Williams The Institutes CPCU Society Publications Committee Chair: Heather Blevins, CPCU State Farm Vice Chair: Tredessa Travers, CPCU Gallagher Bassett Committee Members: Louis Bonanno, CPCU Arch Insurance Group Abi Potter Clough, CPCU AbiLeads, LLC Gregory Foley, CPCU USAA Delli Bhaskar Jagadeesan, CPCU Guidewire Frederick R. Parcells, CPCU Arch Insurance Group Laura Poole, CPCU Crossway Consulting Teresa Roberts, CPCU, AIC, AIC-M PMA Companies Kathy Steinig, CPCU USAA Michael Vahldick, CPCU Liberty Mutual Liaisons: Kelly McAnally The Institutes CPCU Society Michele Schrotter, CPCU Marsh McLennan Agency Scan the QR code below to give us your thoughts on this issue of Insights. The survey takes less than two minutes to complete! What Do You Think?Dear Members of The Institutes CPCU Society, As we transition from the warmth of summer to the vibrant colors of fall, I am thrilled to share exciting updates and plans that will shape the future of The Institutes CPCU Society and empower each one of us to reach new heights. In June, the Leadership Council convened in person to plan for ongoing growth and opportunities. After thoughtful consideration, we developed our strategic plan for 2025–28. This plan is designed to empower, develop, and connect members while continuing to foster an inclusive and forward- thinking community. Here, specifically, are its key pillars: Pillar 1: Empowering Our Global Membership We will support members’ value, opportunities, and successes across all career stages and enhance access to programs through innovative platforms. Pillar 2: Delivering Unparalleled Professional Growth Opportunities We aim to create learning opportunities, connect members to thought leadership, elevate members through leadership development, and support technical knowledge acquisition. Pillar 3: Fostering an Ethical, Vibrant, and Inclusive Community We will celebrate and support an inclusive global membership, focus on ethical and Good Works initiatives, and grow membership across all disciplines and geographies. Pillar 4: Driving Progress on Emergent Issues We will elevate the visibility of the CPCU Society, foster trust, facilitate knowledge sharing, and promote creative problem-solving on critical emerging issues. To read the 2025–28 strategic plan in full detail, please visit CPCUSociety.org/Strategic . I am also pleased to announce that membership renewal for 2025 is in full swing, kicking off on October 1. Renewing your membership ensures your continued access to all the benefits and opportunities the CPCU Society offers. Your engagement and contributions are vital to our collective success. To see this concept at work, look no further than the fall issue of Insights. Starting with a different, nuanced perspective on AI, then delving into the diverse topics of post-claim underwriting, parametric insurance, training trends, and cultural synchronicity in mergers and acquisitions, and ending with a CPCU View on Ghanaian insurance and a Committee Corner recounting takeaways from this year’s Reinsurance & Excess Surplus Lines Symposium, this issue, as always, relies on our members’ wisdom and expertise—and we continue to remain grateful for their contributions. As we look ahead, I encourage you to follow their example and embrace the opportunities that lie before us. Let’s continue to activate our superpowers, drive meaningful change, and inspire each other to achieve greatness. Warm regards, Traci Adedeji, CPCU, ARM, API President and Chair, CPCU Society Leadership Council Letter From the President INSIGHTS | Fall 2024 | 3 Contributors Franklin Manchester leads market strategy and engagement for insurance at SAS, bringing two decades of experience with multiple carriers to the AI Wild West. A self- described “insurance super nerd,” Manchester aims to help the global insurance community continue to thrive. 4 | INSIGHTS | Fall 2024 Justice Peprah Agyei, MPhil, CPCU, ACII, ACIIG, is a regional manager for the National Insurance Commission in Ghana. He has also worked as a personal lines account manager, personal lines underwriter, and sales manager. In 2021, Agyei received the Young Insurance Professional Award from the Chartered Insurance Institute of Ghana. He is a member of the CPCU Society International Interest Group Committee and serves as editor of Claims Quorum, a quarterly publication of the CPCU Society Claims Interest Group. Agyei holds a master’s degree in philosophy, enterprise risk management, and business consulting from Kwame Nkrumah University of Science and Technology and a bachelor’s degree in information studies and linguistics from the University of Ghana, as well as designations from the United States, United Kingdom, and Ghana. David B. Brauer, DBA, is a consultant with Priority Bridge, an artificial intelligence-assisted SaaS (Software as a Service) company that measures, diagnoses, and optimizes organizational culture to find alignment and misalignment within mergers and acquisitions. He has worked globally in the insurance, pharmaceutical, retail, consultancy, education, not-for-profit, and financial services industries. Brauer also developed a patent-pending software that quantifies the cultural fit of specific mergers and acquisitions. Nick Lamparelli is a subject matter expert in catastrophe modeling, exposure management, and underwriting catastrophe perils. Seven years ago, he was the co-founder and chief underwriting officer of reThought Insurance, an insurtech managing general agency that revolutionized the underwriting of complex flood exposures. Lamparelli is managing partner of Insurance Nerds, an insurance marketing, media, and community organization. He is also co-founder and chief executive officer of The Insurance Advocacy Forum of Florida, an advocacy trade group whose mission is to engage with key Florida stakeholders and promote the regulatory conditions that would make Florida an attractive place for global insurance capacity. David F. Brauer, MBA, CPCU, ARM, is an international business coach, author, and speaker. He previously held leadership positions at The Factory Mutual Group Global, Marsh, and Liberty Mutual. Brauer is a member of the Allegheny CPCU Society Chapter. Ruth E. Phillips, MA, CPCU, CIC, ARM, AAI, ACSR, AINS, ANFI, API, CISR, CPIW, CPSR, CRIS, CSRM, ITP, MLIS, is currently a training and education senior specialist at Higginbotham Insurance Company. She began her insurance career over 20 years ago as a personal lines customer service representative. Phillips holds a master’s in adult education.Benjamin LeBlanc is a student at the University of Georgia studying risk management and insurance. He has been working at Berkshire Hathaway Homestate Companies for the last year as an insurance marketing intern. As vice president of financial analysis at the Surplus Line Association of California (SLA), Glenn Leung, CPCU, AIAF, ASLI, ARe, ARC, leads a team that focuses on the financial stability of nonadmitted insurers. Having ended a term as chair of the Reinsurance & Excess Surplus Lines Interest Group in June 2024, he now serves as governor of the interest group. Leung graduated from the University of California, Santa Cruz. Michael Lengel, Esq., MBA, CPCU, ARM, AAI, is a senior in-house counsel at Lumen Technologies. Drawing on his experience in civil litigation, insurance coverage, and contract negotiation, he works closely with his team to craft legal strategies that defend against commercial litigation and mitigate liability risks. In addition, Lengel serves as vice chairman of the CPCU Society Legal & Regulatory Interest Group Committee. Maria Reinmann, CPCU, ARC, AIS, has over 30 years of insurance experience, including ancillary health insurance, personal and commercial lines, and professional liability insurance. In her current position, as a corporate compliance consultant with Nationwide Insurance, she focuses on providing records compliance consulting and advisory services to a diverse mix of customers. Connor J. Thomson, CPCU, is a law clerk at Stickley Law, LLC, and a law student at Villanova University. He serves on the board of directors of the Brandywine Valley CPCU Society Chapter. Thomson earned the CPCU designation last year, at age 23, and was chosen as the CPCU Class of 2023 Spokesperson. Robert S. Stickley, Esq., is the founding partner of Stickley Law, LLC. He has tried numerous high- severity personal injury and fraud cases to verdict and has extensive first-party commercial and personal lines claims handling experience. Stickley also serves as special fraud litigation counsel for insurance companies. He holds a Juris Doctor degree from Widener University, a bachelor’s degree in political science and economics from the University of Delaware, and an advanced degree in litigation management. INSIGHTS | Fall 2024 | 5 No doubt about it, artificial intelligence—or what we’ve all come to know as AI—is here to stay. What remains unsettled in many people’s minds is whether to welcome it, fear it, or both. While history shows us that the seeds of AI were planted many, many years ago, only time will tell what its ultimate impact on the world will be. For now, though, to employ it, we must consider values, theory, and even a little Meat Loaf. AI: Beyond the hype AI: Beyond the hype AI: Beyond the hype 6 | INSIGHTS | Fall 2024by Franklin ManchesterNext >