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MAY / JUNE 2026 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Storming Into Hurricane Season All Eyes on AI The Human Side of Claims Defending AI-Embedded Products When the Algorithm Cannot Explain Itself Black Box THE ON TRIALTHECLM.ORG/MAGAZINE CLM MAGAZINE 3 CLM MAGAZINE MAY / JUNE 2026 >>>CONTENTS 16 THE BLACK BOX ON TRIAL Defending AI-Embedded Products When the Algorithm Cannot Explain Itself 20 THE HUMAN SIDE OF CLAIMS Emotional Intelligence for Insurance Professionals 26 ALL EYES ON AI Latest CLM Study Highlights Concerns About Plaintiff Bar’s AI Adoption, Troubling Litigation Landscape 30 AROUND THE CLM Attending the New School 31 MEMBERSHIP NEWS Membership on the Move 32 WEBINARS TPLF’s Influence on the Legal System 33 EVENTS Upcoming Events and Chapter Activities 34 ASK THE EXPERT Storming Into Hurricane Season FEATURES 4 FRONT DESK The Calm Before Storm Season 6 PREPARING FOR A WAVE OF MICROPLASTICS LITIGATION Navigating a Regulatory Inflection Point 8 THE FIGHT AGAINST MEGA CLAIMS Identifying Workers’ Comp Trends Driving the Marketplace 10 AIDING THE INVESTIGATION The Role of Toxicology in Litigation and Claims COLUMNS 16 26 20 6 32 34 8 10 AROUND THE CLM 304 CLM MAGAZINE MAY / JUNE 2026 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 MAY / JUNE • ISSUE 3 • VOL. 10 REPRINTS For reprints and licensing please contact Jeremy Campbell at jeremy.campbell@TheCLM.org or 513-377-7228. CLM Magazine is published bi-monthly and covers news and topics of interest to insurance claims, risk, and litigation management professionals. Copyright © 2026 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 The 2026 Atlantic hurricane season will be upon us by the time this issue hits your mailbox. Forecasts call for a near-normal to below-normal season, and, after the lack of a U.S. landfall in the 2025 season, one might think there is a risk of complacency setting in. While that may be the case for some homeowners and others, the insurance industry knows better. For insurers, 2025 was not a sigh of relief; it was yet another year to gather data and learn lessons to prepare for future hurricane seasons. In this issue, CLM interviews Triple-I’s Loretta Worters about the takeaways from the 2025 season, what the forecasters say about 2026, and the latest developments on legislative and regulatory fronts across the states that could impact insurance coverages and storm-recovery efforts. Be sure to check out the interview on page 34. CLM’s hurricane season coverage is not limited to the pages of this magazine. On our website, theclm.org/magazine, Associate Editor Angela Sabarese takes a deep dive into 2026 predictions and interviews property experts within CLM’s membership about how the industry is preparing for this year’s hurricane season. The comments about how the industry is leveraging artificial intelligence to enhance predictive models and improve risk and claim assessments are particularly fascinating. In both our print and online articles, the message is clear: The industry is committed to preparedness and resiliency, and neither a fortunate 2025 hurricane season with no U.S. landfalls, nor favorable predictions for this year will diminish that mindset. SCHOOL IS IN SESSION Shortly before CLM’s Annual Conference in March, I spoke with Beth Fitch, founding member of Righi Fitch Law Group, about a panel she participated in for Friday’s premier session, “Collaborating Across the Excess Insurance Tower: Strategies for Managing Complex Claims.” In that interview, Fitch emphasized the challenges in managing complex claims, the misaligned priorities between primary and excess carriers, and the importance of early communication and coordination across the insurance tower to prevent claims from escalating. Fitch will now take these messages and other key facts, lessons, and challenges related to complex claims and excess lines to CLM’s Claims College this year as co-dean of the brand-new School of Excess Lines. Fitch—who joins Ted Schaer, director, Zarwin, Baum, DeVito, Kaplan, Schaer & Toddy as co-dean of the new school—speaks with CLM in this issue about the new school, why claims professionals should attend, and what students can expect to learn. Check out our “Around the CLM” section on page 30 to find out all you need to know about the School of Excess Lines and how to register for Claims College. Phil Gusman Director of Content phil.gusman@theclm.org The Calm Before Storm Season FRONT DESK >>>AT CLM CLAIMS COLLEGE INVEST IN YOUR CAREER • Casualty Claims • Claims Mediation • Construction • Cyber Claims • Excess Lines • Extra-Contractual Claims • Leadership • Litigation Management • Professional Lines • Transportation • Workers Compensation Earn real-world skills through the expert guidance of knowledge leaders who craft the curriculum and teach the courses at our annual Claims College. Participants can work toward an insurance claims designation that has become the industry standard or earn a one-level certificate to show off your hard work. Scan to learn more and enroll now! SEPTEMBER 9-11 • BALTIMORE CLAIMS COLLEGE CERTIFIED CLAIMS PROFESSIONAL (CCP) DESIGNATION • ADVANCED CLAIMS PROFESSIONAL (ACP) DESIGNATION6 CLM MAGAZINE MAY / JUNE 2026 F or years, the conversation surrounding microplastics followed a predictable path of scientific inquiry and burgeoning public concern. However, as of April 2026, we have officially entered “Phase Two” of this emerging environmental mass tort: the regulatory inflection point. Just as the litigation landscape for PFAS was irrevocably altered by agency intervention a decade ago, the EPA’s recent elevation of microplastics to a priority drinking water contaminant has signaled a shift from abstract concern to formal oversight. For claims resolution and litigation management professionals, the question is no longer if microplastics will be regulated, but how a patchwork of new rules will serve as a catalyst for future litigation. THE EPA SIGNAL: PUBLIC PRESSURE MEETS AGENCY ACTION On April 2, 2026, the EPA announced that microplastics will, for the first time, appear on the agency’s draft Sixth Contaminant Candidate List (CCL 6) under the Safe Drinking Water Act. The agency explicitly noted that this designation was a direct response to the concerns of millions of Americans. While the CCL 6 does not yet set enforceable limits or require removal, it designates microplastics as a priority for research, monitoring, and future rulemaking. This move is a classic precursor to litigation. Regulatory recognition often serves as a “stamp of legitimacy” for plaintiffs’ attorneys, making it easier to frame future claims around “known concerns” rather than purely Preparing for a Wave of Microplastics Litigation Navigating a Regulatory Inflection Point By Kevin Ringel and Joshua Ferguson ENVIRONMENTAL >>> Kevin Ringel is a partner with Freeman Mathis & Gary, LLP. kevin.ringel@fmglaw.com Joshua Ferguson is a partner with Freeman Mathis & Gary, LLP. jferguson@fmglaw.com THECLM.ORG/MAGAZINE CLM MAGAZINE 7 hypothetical risks. In an era otherwise defined by general deregulation, this specific focus on microplastics suggests that the sheer volume of public and scientific attention has made the issue too significant for agencies to ignore. THE COMING PATCHWORK: SPECULATING ON FUTURE RULES The CCL 6 listing is the first domino in a series of regulatory efforts that will likely span multiple industries. Based on the trajectory of previous contaminants like PFAS and asbestos, we can anticipate several frontiers of new regulation: • Beyond bottled water labeling. Current litigation centers on whether microplastics defeat a “spring water” label. Future regulations may mandate specific disclosure requirements for a broader range of consumer products, from food packaging to synthetic textiles, regarding the potential for particle shedding. • Effluent limits and wastewater standards. As the EPA gathers data, we expect to see new standards for industrial discharge and wastewater treatment plant effluent. This could force facilities to adopt expensive new filtration technologies or face strict non-compliance penalties. • Product design mandates. Just as microbeads were banned in rinse-off cosmetics, regulators may eventually target “high-shedding” product designs. This could include requirements for washing machine filters or mandates for apparel manufacturers to utilize fiber-binding treatments. • Agricultural constraints. With microplastics entering the soil through biosolids and plastic mulches, new rules regarding soil amendments and agricultural runoff are a high probability. FROM REGULATION TO LITIGATION: THE NEW GROUNDS FOR CLAIMS New regulations do not just change how companies operate; they also create entirely new categories of legal exposure. We anticipate that regulatory “Phase Two” will trigger the following litigation trends: • Enforcement actions and citizen suits. Formal standards provide a clear yardstick for compliance. We expect an increase in government enforcement actions for non- compliance with new monitoring or reporting requirements. Furthermore, many environmental statutes allow for citizen suits, enabling environmental groups to sue private entities directly for alleged regulatory violations. • Regulatory-based standard of care. In “failure to warn” or “design defect” cases, a new EPA standard often becomes the de facto “standard of care.” Plaintiffs will argue that if the EPA has designated microplastics as a priority contaminant, any manufacturer that did not proactively mitigate shedding or warn consumers was inherently negligent. • Contractual and supply chain disputes. As large retailers and manufacturers begin to demand “microplastic-aware” components to meet their own compliance goals, we expect an increase in contractual disputes. These may involve indemnification triggers, breach of warranty claims regarding “plastic- free” specifications, and supply chain disruptions rooted in new environmental mandates. PARALLELS AND PREPAREDNESS: LESSONS FROM THE PFAS PLAYBOOK The transition from narrow, early claims to broad theories of liability is a familiar one, as the regulatory trajectory of microplastics closely mirrors the evolution of PFAS litigation. A decade ago, PFAS claims were largely confined to specific industrial sites, but regulatory attention eventually expanded that scope to include food packaging, textiles, and cosmetics. We expect a similar expansion here, particularly as plaintiffs adopt the PFAS playbook of targeting the beginning of the supply chain. Because plastics are entirely synthetic and do not occur naturally in the environment, manufacturers of the raw polymers may face claims similar to those brought against chemical manufacturers in PFAS cases, alleging that they introduced a persistent contaminant into the stream of commerce with knowledge of its environmental longevity. This makes the microplastics threat unique, as the visceral nature of plastic—which every juror has seen degrade in their daily lives—allows plaintiffs to move straight to an intuitive narrative of internalized contamination. Success for the defense in this new phase depends on early intervention: The last clear window to get ahead of the curve is right now. To capitalize on this window, organizations should immediately begin stress-testing their operations by reviewing manufacturing processes and discharge points against potential future effluent limits. Simultaneously, it is critical to audit marketing and labeling materials or any other public-facing information to ensure that “natural,” “clean,” or “safe” claims remain defensible in an environment of increased testing and potential disclosure mandates. Professionals must also diligently monitor the evolving science, as the EPA’s data-gathering phase will generate critical new information on dose- response and exposure pathways that will ultimately shape future causation arguments. Finally, companies should engage with legal counsel to develop proactive compliance strategies that account for both federal EPA actions and the likely emergence of a complex patchwork of state-level regulations. The EPA’s April 2026 announcement has removed any doubt that microplastics are now a permanent fixture on the regulatory radar. While this does not mean a flood of litigation is imminent, it does mean the era of purely hypothetical risk is over. By establishing risk-management policies and procedures on these shifting rules and applying the hard-earned lessons of previous mass torts, claims and litigation professionals can build a defense strategy that is as robust as the new regulatory landscape demands. K8 CLM MAGAZINE MAY / JUNE 2026 Irina Simpson is the executive vice president of workers’ compensation for Gallagher Bassett. irina_simpson@gbtpa.com Patrick Edwards is the area senior vice president of workers’ compensation for Risk Placement Services, Inc. patrick_edwards@rpsins.com T he U.S. workers’ compensation insurance market continues to evolve, with rising medical costs, cumulative trauma litigation, and reserve adequacy concerns driving significant changes. When looking at the key factors driving changes in the market, it is important to understand their impact on claim severity. Several economic and regulatory factors come into play, starting with how businesses, governments, and various agencies are reevaluating their budgets, expenditures, and financial outlooks and are changing their approach to claims as a result. While a decline in frequency remains, the cost of medical care is rising, leading to increased severity in claim costs. Another notable trend is the rise in mega claims, elevated through increased medical costs. These claims require more resources, faster and more comprehensive intervention, and higher caliber claims expertise to manage. With medical advances throughout the world, survivability and recovery rates are improving, but this requires longer and better lifetime support. Mega claims are fueled by rising jury damages and are amplifying claim severity across states. These verdicts can in part be attributed to social inflation, which is driven in part by desensitization to large verdicts and corresponding media impact, negative public sentiment and corporate accountability, erosion of tort reform, and litigation funding. Adopting a multifaceted approach to counteract these influences is likely to yield the most significant results. Measures could include leveraging advanced data analytics to prevent and predict claims with high jury damages, exploring alternative dispute resolution methods, and tapping into partners with The Fight Against Mega Claims Identifying Workers’ Comp Trends Driving the Marketplace By Irina Simpson and Patrick Edwards WORKERS’ COMPENSATION >>>THECLM.ORG/MAGAZINE CLM MAGAZINE 9 specialized expertise that can support policyholders with training, resources, and tools. Data analytics and technology are powerful tools for mitigating increasing claim severity, specifically in identifying comorbidities and psychosocial factors early in developmental cases to develop strategies before they become severe. Historical claim benchmarking and analytics provide carriers with insights into emerging trends and patterns that contribute to claim complexity and associated severity, assisting in making informed decisions and developing strategies to overcome these challenges. Predictive models can help pinpoint potential high-risk claims, and identify where intervention may be helpful and directional changes needed, allowing carriers to stay ahead of the curve. In addition, performance analytics can play a crucial role in facilitating more informed financial decisions. Those looking to get ahead of the trends would be well served looking at states like California, which is typically at the forefront of workers’ compensation trends. In 2024, California, representing nearly a quarter of the U.S. workers’ compensation market, produced a combined ratio of 127%, prompting an 8.7% pure premium rate increase, the highest in more than a decade. This signals the emergence of a potential tightening market, and underlying issues such as escalating medical costs, increased severity of indemnity claims (especially the surge in complex claims like cumulative trauma), and higher litigation expenses versus a workers’ compensation premium stagnation that has not kept pace with rising costs. The rate increases indicate a shift in the workers’ compensation line (albeit exclusive to California for now) in terms of exposure trends. The industry should prepare for the potential subsequent shifts in regulations across other states, especially those considered “bellwether” in regulatory advances, particularly in how they affect outcomes as it relates to cost, access to care, compensability, and even presumption. The workers’ compensation business segment has been used to years of declining frequency and soft-market pricing. However, in some states, like California, the trend appears to be reversing. The industry must be mindful of the trends as they relate to the rise in cumulative trauma cases (California- specific), expansion in compensability definitions, and changes to presumption of laws across jurisdictions, among many others. These trends may influence frequency and severity trends as well as rate changes beyond California. Mental health continues to shape how the industry approaches claims. Recovery is a holistic journey, whether due to law changes regarding mental health’s compensability, or because some providers serve with empathy first and account for the whole person while working toward resolution. Refining and adapting the approach to mental health and addressing injured worker needs holistically should remain a priority. Another trend is the challenge of accessing health care, especially in rural areas. Hospital closures and consolidation, decreases in graduating primary care physicians, an increased reliance on alternative providers, and providers opting out of traditional PPO networks are major concerns, especially as the cost of care continues to rise regardless of these additional factors. Medical and health care inflation continues to drive claim severity, leading to mega claims. Frequency trends, which have seen positive results over the last decade, will be important to watch. As private health insurance premiums are likely to rise, individuals may be opting out of insurance altogether or choosing high-deductible plans that are difficult to afford. There may be a potential shift of medical costs toward a no-fault system like workers’ compensation. The restriction to care, and associated costs, has the greatest impact on the injured worker and their recovery. Individuals in rural and more distantly placed areas will not be able to access care in a timely manner, or may rely on alternative medical sources for care, leading to potential delays in preventative care following an injury. In both instances, this has the potential to increase the severity and complexity of cases once they occur. Focus on early intervention, employee advocacy, treating the whole individual, and developing comprehensive treatment plans that address comorbidities, psychosocial factors, and mental health will need to remain the focus to control these costs. Furthermore, continued focus must be applied to developing and nurturing outcome-based, accessible networks where providers understand workers’ compensation and can offer appropriate and timely care based on the injured worker’s needs. Navigating the constantly shifting and potentially tightening workers’ compensation market is necessary to reducing mega claims and requires proactive strategies, early client engagement, and comprehensive market knowledge. Looking ahead, staying updated on state-level legislative changes, such as presumption laws for mental health injuries and hybrid work compensability challenges, is vital for adapting to market conditions. K Data analytics and technology are powerful tools for mitigating increasing claim severity, specifically in identifying comorbidities and psychosocial factors early in developmental cases to develop strategies before they become severe.Next >