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Summer 2023A PROFESSIONAL JOURNAL BY THE INSTITUTES CPCU SOCIETYThe Best Deal in Town! Ready to save money? Take advantage of CEU’s Unlimited Access Program for just $44.85 (that’s a 35% savings off the regular price for CPCU Society members) , NO state filing fees, NO hidden fees, period. CPCU Society members: take advantage of your 35% savings on Unlimited Access today! With Unlimited Access, you can choose from over 150 courses from our on-demand library. That’s not all! As an Unlimited Access subscriber you get to enjoy 50% off every live CE webinar. CPCU SOCIETY MEMBERS: SAVE 35% ON UNLIMITED ACCESS! Watch the savings add up! CEU.com Upcoming CE Webinars: Before, During, and After the Flood: The Role of Insurance Managing Property Risk in a World of Increasing Climate-Related Disasters Detecting Insurance Fraud Managing Drone Risks: Exposures and CoverageVolume 10, Issue 2 What do you think? Send us your feedback on this issue, along with thoughts on what topics you’d like to see in the future: CPCUSociety.org/Insights. Big Data’s Moral Imperative 6 How to Properly Deny Claims by Bill Wilson page 13 5 Key Criteria in Choosing IDP Vendors by Punitha Geetha and Sai Raman page 18 Determining Bad Faith in Claims Handling Litigation: An All-Inclusive Approach by Stanley L. Lipshultz page 26 Fire Insurance, Then and Now: Through the Lens of The Philadelphia Contributionship by Carol Smith, Megan Eckstrom, and Tom Greenfield page 36 CPCU View Family Ties: Third-Generation CPCU Erin Dop Keeps Insurance Education in the Family by Michele Schrotter page 44 Committee Corner Our Job as Allies: What Can We Do to Foster a Sense of Belonging? by Alivia Cooper, in collaboration with Brad Gronke page 46 by Jamie Warner and James Jones2 | INSIGHTS | Summer 2023 The Institutes CPCU Society offers its appreciation and extends sincere thanks to the Ethics Committee; Inclusion, Diversity, Equity, and Awareness (IDEA) Committee; and Legal, Coverage, Regulatory, Education, & Witnesses (L’CREW) and Underwriting interest groups, 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. © 2023, The Society of Chartered Property and Casualty Underwriters. CPCU is a registered trademark of The Institutes Designations, LLC. All rights reserved. In2Risk is a registered trademark of The Institutes. All rights reserved. The Institutes CPCU Society Publications Committee Chair: Laroux Whitman, CPCU Erie Insurance Group Vice Chair: Heather Blevins, CPCU State Farm Committee Members: Marcella Beasley Capital Insurance Group Louis Bonanno, CPCU Arch Insurance Group Abi Potter Clough, CPCU AbiLeads LLC Stephanie Doss, CPCU The Hanover Insurance Group Joseph S. Harrington, CPCU Self-employed Michael W. Koscielny Jr., CPCU Born2Lead, LLC Frederick R. Parcells, CPCU Arch Insurance Group Brian K. Taylor, CPCU Tredessa Travers, CPCU Atlantic Casualty Insurance Company Michael Vahldick, CPCU Liberty Mutual Liaisons: Victoria Cahn The Institutes CPCU Society Kelly McAnally The Institutes CPCU Society Michele Schrotter, CPCU Marsh McLennan Agency Through Insights, a professional journal by The Institutes CPCU Society, you can: •Share your expertise on leadership and soft skills •Keep members informed about emerging industry issues and hot topics •Publish in-depth, relevant insurance articles that promote further conversation Please support our efforts to educate and engage. Learn more at CPCUSociety.org/Insights. Then submit your article by email to CPCUPublications@CPCUSociety.org. See Your Content Featured in an Upcoming Edition! You can receive CPCU in Good Standing credits for reading the Insights articles in this issue! Start accruing credits today by accessing this material through The Institutes CPCU Society Knowledge Center: TheInstitutes.org/GoodStanding. Did You Know?Greetings, Fellow CPCU Society Members: I hope you have been enjoying a relaxing and rejuvenating summer. A break from work can help us refresh our minds and come back to our professional endeavors with renewed energy and focus— which brings me to a couple of big news items within our Society. First and foremost, I would like to encourage all members to attend In2Risk® 2023, which will feature keynote speaker Vernice “FlyGirl” Armour, America’s first African American female combat pilot. Taking place October 5 through 7, in Washington, D.C., this annual event is more than a celebration of CPCU® conferment. It is a destination for risk management and insurance professionals to connect, learn, and grow. In2Risk provides an opportunity to extend our reach, by engaging with industry thought leaders, attending educational sessions, and networking with professionals across the risk and insurance industry. I believe that In2Risk is an essential event for all members to attend, and I hope to see you there. I’d like to express my gratitude to our volunteer leaders for their hard work and dedication to our Society. Without their commitment, we would not be able to provide the value and benefits that we offer to members. Additionally, I want to extend a warm welcome to our new interest group committee members, who will be starting their terms in July. We look forward to your contributions and fresh perspectives. We are not only risk management and insurance professionals but also thought leaders in our industry. So, I encourage all members to contribute to Insights, webinars, and other Society resources. By sharing your expertise and individual perspective, you can help shape the future of our profession and strengthen our community. Don’t forget: You are an expert in something. Often, we know more than we give ourselves credit for. As a global organization, we have a unique opportunity to extend our reach beyond borders and welcome members from around the world. With that in mind, my second piece of news is that, to make membership more accessible for international professionals, we have introduced tiered dues based on the World Bank’s classification of economies. Tiered dues ensure that members and prospective members pay fees that are more equitable while still receiving access to all the same great benefits and opportunities. Through this effort, we hope to encourage greater numbers of international professionals to join our community, thereby adding increasingly diversified voices and contributions. Thank you for your continued support of our global CPCU Society. Enjoy the rest of your summer, and I look forward to connecting with you in the coming months. Together, we can do great things! Sincerely, Brett Clausen, CPCU, CIC, FLMI President and Chair, CPCU Society Leadership Council Letter From the President INSIGHTS | Summer 2023 | 3 Megan Eckstrom, MSIM, CPCU, is vice president of claims at The Philadelphia Contributionship. With 17 years of industry experience, she has contributed in a variety of claims and operations roles, currently serves as treasurer for the Boston CPCU Society Chapter, and is a past president of the Rhode Island CPCU Society Chapter. Contributors Jamie Warner, MS, CPCU, AIDA, is a managing director at Plymouth Rock Assurance. She also serves as a lecturer and faculty affiliate for analytics and HR management graduate programs at Northeastern University. In addition, Warner is vice chair of The Institutes CPCU Society Ethics Committee and a past president of the Boston CPCU Society Chapter. She holds a master’s degree in analytics and a bachelor’s degree in mathematics and economics. Bill Wilson, CPCU, ARM, AIM, AAM, a 50+ year veteran of the property-casualty insurance industry, is the founder and CEO of InsuranceCommentary.com. He is the author of When Words Collide: Resolving Insurance Coverage and Claims Disputes and five other books, including Why Insurance Doesn’t Cover the COVID-19 Pandemic. Carol Smith recently retired as archivist of The Philadelphia Contributionship, where she studied and preserved the history of the company and insurance industry for many years. James Jones is executive director of the Katie School of Insurance and Risk Management at Illinois State University, where he teaches classes and conducts ethics workshops for undergraduate students and industry professionals. His research explores ways to help advance insurance and risk management solutions to poor and underserved markets. He also chairs The Institutes CPCU Society Ethics Committee and is a member of the Central Illinois CPCU Society Chapter Ethics Committee. Tom Greenfield, CPCU, has been president and chief executive officer of The Philadelphia Contributionship since 2019. He has worked in the insurance industry for nearly 40 years, earning his CPCU designation in 1992. 4 | INSIGHTS | Summer 2023INSIGHTS | Summer 2023 | 5 Punitha Geetha, CPCU, is director of client services at CogniSure, Inc., with responsibility for customer success. She has worked as a transformation consultant for top brokers and insurers and is experienced in property- casualty insurance, Six Sigma, and product management. Sai Raman, CPCU, AIAF, CFP, founder and chief executive officer of CogniSure, Inc., has more than 20 years of insurance expertise. Previously, as a partner and regional vice president for a large global consulting company, he was responsible for sales, solutions, and delivery of more than $50 million in annual information technology spending across many insurers in the Midwest. Stanley L. Lipshultz, JD, CPCU, is an instructor, consultant, and expert witness in insurance matters. He previously was a claims adjustor and liability supervisor for the Insurance Company of North America. Lipshultz also previously served as chairman and member of the Coverage, Litigators, Educators & Witnesses (CLEW) Interest Group of the CPCU Society, as well as editor of its newsletter; as a member of the CPCU Society’s Board of Governors; and as the first chairman of the CPCU Society’s Diversity Committee. Alivia Cooper, MS, CPCU, CRM, CIC, is president and chief executive officer of The FitzLane Project (a not-for-profit focused on providing fully funded mental health therapy to underprivileged transgender youth across Florida) and a claims analytics manager at Amerisure Insurance. She is also a member of the CPCU Society’s Inclusion, Diversity, Equity, and Awareness (IDEA) Committee. Michele Schrotter, CPCU, NDCCDP, CRM, RHU, CIC, AAI, AINS, CPIW, is agency risk manager for Bouchard Insurance, a Marsh McLennan Agency (MMA). In this role, she manages the Bouchard region’s errors and omissions, contracts, and legal matters, serving as a technical resource and educating her colleagues in coverages and the industry. She serves on the MMA Enterprise Diversity, Equity, & Inclusion (DE&I) Council, co-chairs the Bouchard region DE&I Council, and serves on the CPCU Society Leadership Council. Brad Gronke, EdD, MBA, MS, CPCU, is principal and founder of Ignite P3, technical training manager for Gallagher Bassett, an adjunct lecturer in business and leadership at Benedictine University, and a keynote speaker and author. In addition, he is vice chair of the IDEA Committee.Big Data’s Moral Imperative by Jamie Warner and James Jones 6 | INSIGHTS | Summer 2023Big data shows specific promise and initial success around loss prevention and risk resilience. What’s more, industry leaders can now leverage such data to best serve their constituents. In considering whether insurers have an ethical responsibility to use big data to help policyholders become more resilient to loss, this article discusses important ethical implications around current opportunities and the necessary paradigm shift. Next >