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MARCH / APRIL 2025 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT LA on Fire Comparing Reform Efforts on Time-Limited Demands The Two Faces of AI Cyber Threats in 2025 and Beyond DANGER EVOLVES MARCH / APRIL 2025 DIGITAL EDITION SPONSORED BY:CUSTARD.COM 888.CUSTARD PLEASE CONTACT RICHARD MIXON FOR YOUR PROPERTY CLAIMS NEEDS. Excellence in Claims Handling. Providing the highest quality claims service for our client partners. Building Partnerships Since 1962.MARCH / APRIL 2025 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT LA on Fire Comparing Reform Efforts on Time-Limited Demands The Two Faces of AI Cyber Threats in 2025 and Beyond DANGER EVOLVESSlip, trip, and fall injury accidents are often complicated matters. Using a scientific approach and reliable methodologies, Rimkus specialists in injury biomechanics and human factors work side by side with engineering and building experts to isolate the facts and determine what happened. We have evaluated thousands of such incidents across a broad spectrum of public and private environments. If you're facing a complex forensic challenge of any kind, count on us to uncover the facts. YOU HAVE QUESTIONS. WE PROVIDE ANSWERS. +1 800 580 3228Consultants. Experts. Innovators.™rimkus.com WHAT HAPPENED? WITH SO MUCH AT STAKE, YOU NEED TO KNOWTHECLM.ORG/MAGAZINE CLM MAGAZINE 3 CLM MAGAZINE MARCH / APRIL 2025 >>>CONTENTS 30 DANGER EVOLVES Cyber Threats in 2025 and Beyond 36 LA ON FIRE Ash, Destruction, and Recovery Out West 42 TIME’S UP! Comparing Reform Efforts on Time-Limited Demands 46 A RETURN TO OUR ROOTS FEATURES 4 FRONT DESK Spring Has Sprung 6 THE RISING RISKS OF CRYPTOCURRENCY THEFT Lessons From the Bybit Hack 12 AVOIDING THE EMPEROR’S MISSTEPS Exposure Management for Uncovered and Excluded Perils 18 RTW PROGRAMS FOR A MULTIGENERATIONAL WORKFORCE Strengthen Training by Rethinking Transitional Duties 24 THE TWO FACES OF AI The Unlimited Potential to Both Fight and Perpetrate Fraud COLUMNS 30 42 36 8 18 AROUND THE CLM MARCH / APRIL 2025 DIGITAL EDITION SPONSORED BY: PHOTO BY DAVID MCNEW/GETTY IMAGES4 CLM MAGAZINE MARCH / APRIL 2025 DIRECTOR OF CONTENT Phil Gusman ASSOCIATE EDITOR Angela Sabarese ASSISTANT EDITOR Fran Clark ART DIRECTOR/ PUBLISHING OPERATIONS MANAGER Jason T. Williams EDITORIAL QUESTIONS Phil Gusman phil.gusman@TheCLM.org PRESIDENT Susan Wisbey-Smith VP PARTNERSHIPS Jeremy Campbell SENIOR ACCOUNT EXECUTIVE Laurel Metz ACCOUNT EXECUTIVE Megan Josd ADVERTISING QUESTIONS Jeremy Campbell jeremy.campbell@TheCLM.org 513-377-7228 MARCH / APRIL • ISSUE 2 • VOL. 9 REPRINTS For reprints and licensing please contact Jeremy Campbell at jeremy.campbell@TheCLM.org or 513-377-7228. CLM Magazine is published monthly and covers news and topics of interest to insurance claims, risk, and litigation management professionals. Copyright © 2025 by the CLM. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the CLM. The views expressed in the articles are solely those of the authors or those interviewed and do not necessarily reflect the views or opinions of CLM or the companies in which the authors are employed. A publication of As an avid gardener in the Midwest, spring is an exciting time for me. It’s full of promise for what’s to come over the next several months, and it’s a time to plan and prepare. It’s also a time to appreciate the beauty of the daffodils I planted last fall. Spring at CLM has a similar vibe. We are planning, preparing, and appreciating the results of the hard work from our staff and membership community. Our Annual Conference is a highlight every spring, and its success is due to months of planning and preparing. CLM has always been a creation of the industry, for the industry, and the Annual Conference is a tremendous example of that. Dozens of amazing speakers come together to share their experience and knowledge with conference attendees. The staff works tirelessly to ensure every last detail has been handled. All CLM events on both a local and national level are the result of hard work by the CLM community, for the benefit of the CLM community. I hope you can experience at least one CLM event in 2025. We’re also starting to see the fruits of the labor from the CLM Litigation Management Task Force. The task force and related subcommittees are tackling some of the hardest challenges facing the claims and litigation management arena. The conversations are not always easy as they dive deep into difficult topics such as billing guidelines, use of AI, and performance metrics. The task force is also working to address the challenges of talent recruitment, retention, and professional skills development. In addition, CLM local chapters are getting a renewed focus in 2025 as we support thriving chapters, launch new ones, and relaunch ones that became inactive during COVID-19. These chapters bring the power of CLM right to your backyard, offering unparalleled opportunities to expand your local network, participate in educational programs close to home, and even volunteer your expertise. As we look ahead, I am inspired by the momentum we are gaining. Our commitment to bringing the industry together has never been stronger. As a non-profit, CLM is uniquely positioned to serve as the focal point for industry collaboration, education, and networking. I always want to hear how we can help serve the amazing CLM community. If you are looking to get more involved or want to discuss a challenge or trend you are encountering, reach out to me. I’m always here to listen, learn, and create solutions. Here’s to a spring full of new possibilities and shared success! Susan Wisbey-Smith President wisbey-smith@theinstitutes.org Spring Has Sprung FRONT DESK >>>Seamlessly manage commercial property claims with Contractor Connection’s Commercial Managed Repair Program. Speed. Accuracy. Quality. Confidence. When disaster strikes a commercial property, every moment counts. Business operations are disrupted, property owners are overwhelmed, and claims management becomes a race against time. As an insurance professional, you need a solution that simplifies the process while ensuring high-quality repairs and satisfied policyholders. Contractor Connection’s Commercial Managed Repair Program (MRP) connects you with a nationwide network of thoroughly vetted, highly qualified general and specialty contractors. With a proven track record in expediting commercial property claims, our commercial MRP streamlines the repair process, reduces costs and ensures top-tier workmanship backed by a five-year warranty. Why Partner with Contractor Connection? 5,000+ specialized contractors nationwide $3B+ in annual managed repair costs 500K+ assignments annually 95%+ estimate accuracy From minor damage to large-scale losses, our commercial MRP ensures efficiency, compliance and superior results, allowing businesses to recover faster while reducing administrative burdens for adjusters and carriers. Scan the QR code to discover how Contractor Connection’s commercial MRP can transform your claims process. Learn more at www.crawco.com/feature/commercial-managed-repair6 CLM MAGAZINE MARCH / APRIL 2025 O n Feb. 21, 2025, the Dubai-based cryptocurrency exchange Bybit suffered a $1.5 billion loss during a routine Ethereum customer transfer. This theft was by far the largest diversion of digital assets in history. The heist was traced to a state-sponsored North Korean hacking group. The Bybit exchange is not legally available to U.S. residents under regulations promulgated by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission. Further, Bybit had sufficient capital to cover all customer positions. Nevertheless, this latest breach raises important risk management questions. Specifically, will a free-market regulatory environment benefit the digital-currency industry, or could it actually damage the industry, its reputation, and its customers? Bitcoin price instability, which began in the COVID-19 era, brought a cascade of failed investment platforms that culminated in the FTX bankruptcy. The SEC was criticized for its failure to act sooner in prosecuting exchanges for the sale of unregistered securities. Now, deregulation advocates are applauding The Rising Risks of CryptoCurrency Theft Lessons From the Bybit Hack By Edward Donohue CMPL >>> Edward Donohue is a partner at Hinshaw & Culbertson LLP. edonohue@hinshawlaw.comNext >