MEMBERS REPORT · The meeting’s theme focused on “2020 Vision: Hindsight, Insight, and...

MEMBERS REPORTEnergy Insurance Mutual

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Volume 34, Issue 2 | April 2020ENERGY INSURANCE MUTUAL 2020 Members Report/


The 2020 Risk Managers Information Meeting (RMIM) was held once again at the popular Hyatt Regency Grand Cypress in Orlando. Celebrating 34 years of risk management with

370 RMIM participants coming together from around the country, guests included risk managers, brokers, business partners as well as EIM, EIS and ECM staff. The meeting’s theme focused on “2020 Vision: Hindsight, Insight, and Foresight.”

Three activity-filled days opened on Sunday evening with the 2020 David L. Hadler Risk Management Award presented to Deborah S. Gaffney, Director, Risk Management at Southern Company. The evening continued with a tribute and roast to celebrate Scott Goodell’s

10 years as EIM’s President and CEO, and to acknowledge his upcoming retirement in May. Sunday’s agenda wrapped up with an amazing performance by Oz Pearlman, mentalist and magician who, enlisting audience participation, astounded the crowd.

Monday’s presentations and panel discussion included an informative Company overview from EIM’s senior management team with updates on underwriting, claims, finance, enterprise risk management (ERM) and the activities of EIS, ECM and the Insurance Advisory Committee (IAC). Later, author Ryan Jenkins shared tips on how to manage, develop, and engage multi-generational people at work. Monday afternoon offsite activities gave attendees a chance to experience either a Backstage Safari at Animal Kingdom, SeaWorld or Tree Trek Adventure Park.

Tuesday opened with retired Navy SEAL and author, David Goggins, as he shared his compelling and inspiring life story about adversity and “staying singularly focused,” in keeping with the 2020 Vision theme. Next, Ann Joslin, Vice President – Claims at EIM, introduced four guest panelists: Tim Conley, Megan Paquin, Jim Glennon and Rachel York Colangelo. Informative presentations ensued on the subjects of high-profile catastrophic accidents and lessons learned, crisis communications to mitigate litigation risk, monitoring counsels, and how to avoid “nuclear” verdicts.

Find details on all these events and much more inside this issue of the EIM Members Report.

THE RISK MANAGERS INFORMATION MEETING February 23-25, 2020 / Hyatt Regency Grand Cypress, Orlando

EIM PAYS A $50 MILLION DISTRIBUTIONIn March 2020, EIM paid a $50 million distribution to qualifying members of record, marking the ninth consecutive year in which the EIM Board has authorized an annual distribution and bringing total distributions since 2011 to $368 million. The Board will continue to assess EIM’s available capital over the course of 2020 to determine if a supplemental distribution is in order.

Any questions regarding distributions should be directed to Tommy Bolton at: [email protected].

COVID-19 UPDATETo Our Members and Friends:

Our thoughts are with those directly impacted by the COVID-19 pandemic.

In accordance with Centers for Disease Control and state and local government mandates, EIM, EIS and ECM staff have been working from home since March 17, 2020 and will continue to do so until May 1, 2020. We are fully operational and committed to maintaining our responsiveness to members’ risk management needs. All staff can be reached by email or phone.

Regular updates are available at EIM’s website, www.eimltd.com.

Stay healthy and safe!

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The 2020 Risk Managers Information Meeting got off to a great start on Sunday as attendees networked through receptions and dinner. Jill Dominguez, EIM’s Vice President and Chief Underwriting Officer presented the 10th annual David L. Hadler Risk Management Award to Deborah S. Gaffney, Director, Risk Management at Southern Company in Atlanta, GA.

From Left: Scott Goodell, Deborah Gaffney, Jill Dominguez

The David L. Hadler Risk Management Award is presented each year to the Member Company Risk Manager who embodies the professionalism, commitment to excellence and long-standing dedication to risk management that were the hallmarks of David’s career. In each of the past nine years, EIM has directed a $5,000 donation to the risk management program at the college or university of the recipient’s choosing and has now donated more than $65,000 to risk management programs throughout the United States.

Jill Dominguez had the honor of presenting the award to Deborah S. Gaffney, Director, Risk Management at Southern Company in Atlanta, GA. Debbie has been with Southern Company for 22 years and in the past has served as chairman of EIM’s IAC. Debbie played a key role in the search for a CEO that led to Scott Goodell’s position.

Upon accepting the award, Debbie expressed heartfelt emotion exclaiming that the award is “the biggest professional honor that I could have in my career particularly considering whom the award is named after and the quality and caliber of the people who have gone before me.” Debbie has designated the $5,000 donation for contribution to the University of Georgia and intends to personally match the donation to yield a total gift of $10,000.

Prior David L. Hadler Risk Management Award recipients include:

2011 - J. Gary Meggs, Risk Manager, Southern Company

2012 - Michael J. Anderson, Director of Hazard Insurance, Xcel Energy Corporation

2013 - Jack Hadsall, Director, Risk Management, City Utilities of Springfield (retired)

2014 - Bill Powell, former Manager, Risk Management & Environmental Services, Salt River Project

2015 - Linda Barnett, Director-Corporate Risk Management, Dominion Resources

2016 - Mike Kaminski, Manager of Corporate Risk Management, WEC Energy Group, Inc.

2017 - Robert Frounfelker, Executive Director of Risk Management, Consumers Energy Company (retired)

2018 - Julie Jackson, Assistant Vice President, Risk Management & Insurance, Targa Resources Corp.

2019 - John Mellette, Manager of Corporate Insurance, SCANA

SUNDAY NIGHT / AWARD PRESENTATION


SUNDAY RECEPTION / WOMEN IN POWER

This second annual Women In Power networking event gave attendees an opportunity to discuss the roles of female risk managers, brokers and underwriters in insurance and risk management. Since the inaugural event last year, the group has discussed hosting other events with speakers for women, raising money for scholarships for young women in risk management programs and mentoring.

From left: Kathleen McGlynn, Melissa Puglia, Marianna Michael, Cindy Fee, Jill Dominguez, Julie Reinhardt, Stacy Frey, Becky Dobbs

This group photo captures the energy and enthusiasm of attendees From left: Penny Goodwyn, Maureen Clark, Jill Dominguez, Christine Palomba, Melissa Puglia

From left: Rebecca McCabe, Alissa Galasso, Michele Howell, Heidi Gossett, Page Miller

From left: Stephanie Geraghty, Tiffany Barnes, Chris Looes

From left: Rebecca Tafoya, Courtney Jerzyk, Michele Howell

From left: Smitha Viswambharan, Jill Joswiak, Jackie French, Laura Standifer

From left: Stephanie Rogers, Yasmin McComber, Jessica Shultz

From left: Marcia Philpott, Natalie Solomon, Ashlee Beltz

From left: Julie Milbrandt, Lisa Groff, Denise Cosentino, Janaize Markland

From left: Christine Palomba, Sandy Meyers, Cindy Fee


From left: Eric Lobser, Caty Lobser, Jeff Trask, Mark Green

From left: : Karl Zimmel, Tina Zimmel, Gustavo Maldonado, John Bate

From left: Kelly Grunza, Andy Lovrenich, Tim Underwood, Christopher Gregorio

From left: Mike Dragna, Ron Rispoli, Scott Meise and James Fortner

From left: Sarah Baldys, Jessie Guerrero, Jennifer Jeffers, Josh Jeffers, Chip Hardie

RMIM attendees gathered for a Reception exchanging greetings with fellow Members, business associates and guests before the start of the evening’s dinner, awards and entertainment.

SUNDAY NIGHT / MAIN RECEPTION

From left: Allison Maser, Jill Dominguez, Jon Ball, Chris Patterson, Sandra Imbriani, Gregg Crenshaw

From left: Scott McComber, Jonathan Butts, Enille Currie, Yasmin McComber, Edsel Carlson

From left: Lauren Schmitt, Mark French, Jackie French


SUNDAY NIGHT / DINNER AND ENTERTAINMENTA tribute and roast celebrated Scott Goodell’s 10 years as EIM’s President and CEO. Comments were shared by Jane Murphy, followed by Jill Dominguez and then Tommy Bolton (Scott’s successor) with funny gifts such as a gas can and mac n’ cheese socks. Scott addressed the audience, thanking staff, Member companies, broker representatives and family for the tribute and for attending. Scott’s wife, children and two grandchildren were in the audience. Scott expressed gratitude for EIM staff, noting that they are “like a family” but also acknowledged how important his own family has been to his success.

Oz Pearlman, mentalist and magician, performed by enlisting audience participation and guessing what people were thinking, simply astounding the crowd. Relating to the RMIM’s theme “Vision 2020”… Oz’s vision seemed purely telepathic! Pearlman is an Emmy-Award-winning Israeli mentalist, speaker, magician, and athlete who won third-place on America’s Got Talent, Season 10 (2015). On January 13, 2020, he reemerged on America’s Got Talent as a contestant in America’s Got Talent: The Champions.

ENTERTAINER / OZ PEARLMAN

Scott Goodell with entertainer, Oz PearlmanOz Pearlman, mentalist and magician performing his magic

Scott Goodell Tommy Bolton


EIM Vice Chairman of the Board, Brian Tierney, Executive VP & CFO of AEP, delivered a welcome to this 34th annual session, noting 370 RMIM participants this year as a testimony to the power of mutuality. Brian talked about the RMIM theme explaining how hindsight, insight and foresight have served the Members. Hindsight helps prepare for extreme events, using experience to take action for the future. Insight comes into play for a plan of action to make sure activity and responsiveness

is effective. Foresight helps to anticipate the future. Brian observed that Scott Goodell officially retires in May 2020 and that Tommy Bolton will succeed as President and CEO while Jeff Tkacz will become CFO. Brian announced that EIM has updated its three-year strategic plan and also recognized and thanked the IAC, EIM Board, EIM staff (27) members, brokers and business partners, concluding that vision is a collaborative experience.

MONDAY SESSION

From left: Theeban Thavanodam, Paul Wendler, Maureen Clark

From left: Sridhar Kocharlakota, Scott Leiman, Mike Mee, Alex Post From left: Darren Sonderman, Chris Chinn, Todd Frazee

From left: Al Cacers, Chris Cioni

Attendees were treated to an upbeat start to the morning with an “EIM/FLIX” video, titled “The Office” in which EIM staff were depicted as TV show and movie characters from such memorable greats as The Office, Caddyshack and Gilligan’s Island. The humorous piece underscored the importance of hindsight, insight and foresight.

MONDAY / GENERAL SESSION OPENER

MONDAY / BREAKFAST

From left: Jackie French, Mark Blair, Laureen Schmitt, Christine Palomba, Heath Silvey

From left: Andy Lovrenich, James Sorenson, Nick Peterson

Brian Tierney


YEAR IN REVIEW / CURRENT STATE OF THE COMPANY

Scott Goodell made opening remarks, then invited Tommy Bolton, Jill Dominguez, Randy Martin and Ann Joslin to the stage for a panel discussion. Scott started with comments on where EIM has been, 2017-2019, citing surplus, net loss ratio, net expense ratio, net premium earned, investment total return, 3-year surplus growth (pre-distribution) and risk capacity.

Tommy Bolton described where EIM is now, i.e., 2019 total investment return of 12.4%, policyholders’ surplus growth and distributions of $100 million in 2019. He explained how surplus contribution is coming from investment performance. Regarding the 2020-2022 Strategic Plan, member experience is a central focus to engage progress, as well as protect the core, existing business relationships and “our” people. Data analytics will be important in the future.

Jill Dominguez explained that 76% of Members have been with EIM for at least 10 years. At the end of 2019, total member count was 153. Jill commented on member utilization of EIM products and reinforced EIM’s mutual advantage, which includes: commitment, shared vision, governance, financial stability, competitive expense ratio, underwriting focus, capacity, claims handling, profit sharing and member experience. The Energy School will take place the week of Oct. 26, 2020 at FSU with attendance expanded to 45. Invitations are to go out in June.

Randy Martin reviewed progress in the past five years with EIS and ECM: a new in-house manager at ECM, new MBP’s, new collaborations, new lines of business, as well as new insurance and reinsurance structures. Randy presented four truths: (1) EIS, with ECM, is more effective and cost efficient; (2) EIS is also looking at new ways to address and finance risk; (3) EIS has nearly an unlimited level of flexibility to address

risk issues; and (4) MBPs are value creators. Randy noted an unprecedented number of new inquiries. Looking forward, transitions are coming with EIS/ECM’s new future home and staff additions to total four. The 2020 PAC Meeting will be Oct. 26-29, 2020 in Charleston, SC.

Ann Joslin explained that EIM’s total claims paid, inception to date, are $2.799B. GL payments total $1.665B inception to date. D&O/Fiduciary payments total $801M, inception to date. 2019 liability payments total $339M. Ann described claim categories, and frequency trends by claim category.

Jill presented 2020 reinsurance renewal general observations and market conditions. Mutual partners are utilized for casualty, property and cyber reinsurance.

Tommy talked about Enterprise Risk Management (ERM), noting that in 2019 EIM added IT vulnerabilities and a reinsurance aggregate deductible tracking to its ERM metrics. He also mentioned that with cyber security, there have been no data breaches or cyber attacks to date. There has been significant business continuity planning with corresponding continuity planning exercises.

Scott wrapped up the session talking about the role of 2020 Vision through: hindsight in identifying volatility, the evolving energy/insurance landscape, loss frequency/severity, stability, and managing capital properly; insight providing innovative risk management solutions, effective loss control/claims administration, and capital adequacy; and foresight including strategic planning, new/expanded product lines, as well as claims responsiveness. All of this leads to being well positioned in the future for managing risk.

Copies of all 2020 Risk Managers Information Meeting presentations are available here.

MONDAY / GENERAL SESSION

From left: Scott Goodell, Tommy Bolton, Jill Dominguez, Randy Martin and Ann Joslin

http://www.cvent.com/events/2020-risk-managers-information-meeting/custom-21-972244d0d0c84adda621bfd29ceede08.aspx


IAC UPDATE: Edsel Carlson, Risk Manager, Emera, gave an IAC Overview explaining IAC’s main purpose as well as key objectives. Edsel recognized the current IAC Members: Mike McFarland (incoming chair of IAC), Ron Rispoli, Stephanie Rogers, Tim Underwood, Denise Straka, Chris Gregorio, Marianna Michael, Arnold Garcia and Frank Stanbrough. Normally, the IAC is comprised of 12 members, and is looking for two new members with three-year terms. Regarding IAC taskforce development, there are currently six task forces: cyber, emerging risk, renewables, regulatory, IAC nominating and TRIPRA (Terrorism Risk Insurance Protection and Reauthorization Act).

Jill Dominguez presented the IAC Chairman Award to Edsel, stating that the Board of Directors of EIM gratefully acknowledges Edsel’s dedicated service and outstanding contributions. He has served on the IAC from 2011 to the present including Chairman since 2018 and Vice Chairman from 2015-2017.

Retiring IAC Committee Member, Dean Jobko, Risk Insurance Department at NRG Energy, was presented a Service Award by Jill, gratefully acknowledging his outstanding contributions. Dean has served on the IAC since 2011 including Chairman from 2015-2017 and Vice Chairman from 2014-2015.

MONDAY / GENERAL SESSION

Monday’s Speaker, Ryan Jenkins is an internationally recognized keynote speaker and author of the book, The Millennial Manual: The Complete How-To Guide to Manage, Develop, and Engage Millennials at Work. His main theme centered on how to overcome a generational bias because emerging generations are a critical mass of change agents with technology and the Internet. Ryan’s interactive presentation included live polls with real-time results revealing insights about audience attitudes and perceptions about Millennials and Generation Z in today’s multi-generational work environment.

MONDAY SPEAKER

From left: Jill Dominguez and Dean Jobko Ryan Jenkins

From left: Jill Dominguez and Edsel Carlson


Attendees enjoyed perfect weather with dinner, music and dancing under the stars.

MONDAY EVENING

From left: Alex Post, Heath Silvey, Jessica Silvey, Pete McGoldrick

From left: Corinne Tkacz, Jeff Tkacz, Rebecca McCabe, Carol Stark, James Mounty

We have 2020 vision!

From left: Alissa Galasso, Tom Chamberlain, Cindy Fee

From left: Mike Kelly, Roy Barnes, Tiffany Barnes

Yasmin McComber

From left: Anna Meyers, Rob Logan, Lisa Hough and Sandy Meyers

From left: From left: John Oehler, Mark Blank, Mark French, Rob Posey

From left: Paige Miller, Christine Freiherr, Jennifer Highsmith, Jennifer Gray, Michelle Bolton

From left: Caty Lobser, Eric Lobser, Jessica Shultz, Eric Shultz

From left: Deana Edmonds, Kevin Wolff, Jeanne Allen

From left: Jennifer Jeffers, Josh Jeffers, Julie Reinhardt-Marsh, Greg Reinhardt


Author of the 2019 New York Times bestseller, Can’t Hurt Me, David Goggins grew up in an abusive household, barely graduated high school, and struggled with serious health issues. Nevertheless, he not only became a Navy SEAL, he is the only member of the U.S. Armed Forces to complete SEAL training (including two Hell Weeks), the U.S. Army Ranger School (where he graduated as Enlisted Honor Man) and Air Force tactical air controller training. A few years later he became one of the greatest endurance

athletes in the world. David’s presentation concentrated on the big theme idea of “staying singularly focused.” He advised to test mediocrity and never be afraid to go after fears. A Q&A session followed, including questions about motivation and David’s process for discipline. Not surprisingly, the session ended with a huge standing ovation.

TUESDAY SPEAKER

Audience members listened intently to retired Navy SEAL and author, David Goggins

TUESDAY SESSION / BREAKFAST

The day started with an energizing breakfast. From left: Jeff Butler, Scott Meise, Rob Logan, Daniel Nelson

Speaker David Goggins


Tim Conley, Attorney at Lau, Lane, Pieper, Conley & McCreadie, P.A., and one of America’s top 100 Civil defense litigators, discussed high-profile catastrophic accidents, investigation methods, and media response from corporate communications. Tim’s key focus is on wrongful death and the plaintiffs’ point of view. Tim’s advice: identify bad facts early, identify comparative fault, access defendants’ liability and consider conditions for early resolution and settlements. Other insights included: countering delays and “surprise” demands as well as identifying any available tools to open communications. Also, identify important witnesses and commence preparation with a corporate representative so they are prepared to be company spokespeople.

Megan Paquin, APR, CPRC, is Vice President at Poston Communications. Regarding crisis communication to mitigate litigation risk, Megan declared that 95% of CEOs should expect to be hit by a least one crisis in the next three years. The main challenges are: (1) communication with external stakeholders, (2) quickly responding, (3) quickly getting info and (4) getting a fair story. Messaging and clear communication with the team is vital, as Megan cited an example showing a WV Water Crisis clip of a company executive who, when interviewed by media, seemed more concerned about quenching his own thirst from a water bottle than answering reporters’ questions. Megan’s advice is: get organized, media train and simulate interviews. Also, avoid “banned phrases” such as “no comment,” and “unable to comment due to pending litigation.” Ethics always wins over competence.

Jim Glennon, Founding Partner at Foran Glennon, spoke about the role of a monitoring counsel and the importance of evaluating risk for liability and damages. A monitoring counsel is able to assist in establishing reserves and provide info on a quarterly basis for internal claims meetings. Documents and information required include reports from defense counsel, experts, evaluations, NTSB, as well as summaries and settlement details. A monitoring counsel initially proceeds by reviewing documentation from the insured as well as what’s in the public domain. They also develop a plan for privileged info. In litigation, a counsel proceeds with quarterly reports, conference calls, mock juries, mediation prep, as well as NDAs/confidentiality and protective orders.

Rachel York Colangelo, Ph.D., of National Managing Director of Jury Consulting, Magna Legal Services, spoke about “nuclear” verdicts and increases in litigation that has caused severe bodily injury verdicts to rise significantly (some in billions) are meant to get the attention of company executives and send messages to corporations. Regarding juror predispositions: 76% believe corporate executives lie and cover up, 71% do not believe there should be caps on jury awards, and 81% believe corporations are more concerned with profits over people. To avoid a “nuclear” verdict: consider ultimate decision makers early, develop a compelling story, test cases, identify expert witnesses and prepare them for depositions. Consider Jury Confirm 2.0 online for a mock jury and/or focus group and JuryEvaluator, a case valuation tool. Key takeaway: investigate all accidents. Violations of policies often end with extreme verdicts.

In Tuesday’s closing remarks, Scott Goodell, EIM’s outgoing president and CEO, introduced a video that recapped memorable events and activities enjoyed by attendees during the three-day conference. Scott also extended thanks to EIM staff, particularly Jane Murphy, Taniyka Ragland, and Katie Imm. Additionally, Scott wrapped up the RMIM meeting referencing back to the 2020 Vision theme. “Hindsight really helps us frame our thinking for the future. Insight and a collaborative commitment are important, considering the challenges of a changing world in insurance and energy. Foresight will help make transitions effortless and seamless, as EIM and its Members work together. EIM is nothing without Member companies.” Scott expressed his thanks to all attendees and invited everyone back again for next year’s conference in Orlando.

TUESDAY SPEAKERS

EIM’s Members Report is electronically published four times per year. Comments, questions, and suggested subjects from members are sincerely welcomed.

Energy Insurance Mutual Limited3000 Bayport Drive, Suite 550Tampa, FL 33607-8418

1-800-446-2270 • 813-287-2117 • Fax: 813-874-2523www.eimltd.com • [email protected]

TUESDAY CLOSING REMARKS

Tuesday’s claims update and panel discussion opened with Ann Joslin, Vice President - Claims at EIM, introducing the four panelists: Tim Conley, Megan Paquin, Jim Glennon and Rachel York.

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MEMBERS REPORT · The meeting’s theme focused on “2020 Vision: Hindsight, Insight, and...

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