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OCTOBER 2022 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Issue-Spotting Hurricane Ian Making the Case for Early Mediation Practical Tips for Handling Cyber-Related Claims 308.6 Billion Reasons to Care Recalculating the economic costs of insuRance fraud for the first time in 27 yeaRs reveals staRtling conclusions OCTOBER 2022 DIGITAL EDITION SPONSORED BY:+1 (800) 466-1578 | jacobsononline.com Get Talent Now: OUR TALENT is nding yoursf i Partner with an executive search and staffing firm with a 50-year history of success in the insurance space. Exclusively dedicated to insurance, The Jacobson Group offers unparalleled industry knowledge and an extensive network. Our talent is helping insurance organizations find the right professionals across all levels and functions. Let us help you find yours. COMPETITION FOR INSURANCE TALENT IS INTENSIFYING.OCTOBER 2022 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Issue-Spotting Hurricane Ian Making the Case for Early Mediation Practical Tips for Handling Cyber-Related Claims 308.6 Billion Reasons to Care Recalculating the economic costs of insuRance fraud for the first time in 27 yeaRs reveals staRtling conclusionsTHECLM.ORG/MAGAZINE CLM MAGAZINE 3 CONTENTS CLM MAGAZINE OCTOBER 2022 20 308.6 BILLION REASONS TO CARE Recalculating the economic costs of insurance fraud for the first time in 27 years reveals startling conclusions 24 MAKING THE CASE FOR EARLY MEDIATION How it can reduce litigation expenses, increase customer satisfaction, and clear backlogs 28 CHANGING THE NARRATIVE IN CLAIMS LITIGATION By listening to juries, we can rewrite the future 32 CLAIMS MANAGEMENT SYSTEM BUYER’S GUIDE How to determine what technology is right for youts 36 IMPACT OF HURRICANE IAN Issue-spotting one of the worst storms to ever hit Florida 37 BETWEEN THE LINES Scariest trends in claims and litigation 38 WEBINARS Beating bad faith 39 EVENTS Upcoming events, chapter activities, and webinars 40 NATIONAL News and verdicts that affect you from across the country 42 VOICES Getting to know Righi Fitch’s Elizabeth Fitch FEATURES 4 FRONT DESK The road to rebuild 6 CHAT ROOM CLM Magazine editors text it up 8 EXPOSURE Hurricane Ian slams Florida 10 AVOIDING SHOCK VERDICTS When it comes to billion-dollar settlements, handle with care 12 DON’T PHONE IT IN Mobile device data analysis in personal injury litigation 14 MEDICARE CONDITIONAL PAYMENTS: WHAT YOU NEED TO KNOW Efficient resolution approaches in Medicare beneficiary settlements 16 FIGURING OUT THE DETAILS Practical tips for evaluating and investigating cyber incidents and claims COLUMNS AROUND THE CLM 20 32 10 16 36 42 OCTOBER 2022 DIGITAL EDITION SPONSORED BY:4 CLM MAGAZINE OCTOBER 2022 VP OF CONTENT Eric Gilkey SENIOR MANAGING EDITOR Phil Gusman CONTRIBUTING EDITOR Fran Clark ART DIRECTOR/ PUBLISHING OPERATIONS MANAGER Jason T. Williams EDITORIAL QUESTIONS Eric Gilkey eric.gilkey@TheCLM.org CHIEF EXECUTIVE OFFICER Ronna Ruppelt VP PARTNERSHIPS Jeremy Campbell SENIOR SALES REPRESENTATIVE Bryan Pifer ACCOUNT EXECUTIVE Megan Josd ADVERTISING QUESTIONS Jeremy Campbell jeremy.campbell@TheCLM.org 513-377-7228 OCTOBER 2022 • ISSUE 10 • VOL. 6 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 © 2022 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 My hope for a quiet hurricane season was shattered by Hurricane Ian. The massive Category 4 storm carved a path of destruction across Florida— and its impact will be felt for years to come. As families are faced with the difficult task of rebuilding their lives, the claims community has mobilized to help them pick up the pieces. Rebuilding is not an easy task—emotionally or structurally. Your compassion and the countless hours spent helping these good people regain a semblance of normalcy makes all the difference in the world. Thank you for doing what you do! In addition to the devastating loss of life and property, the structural recovery from Ian is likely to take years and come with a hefty price tag. Early reporting from our colleagues at the Insurance Information Institute indicates overall insured losses alone topping $30 billion. With the hurricane being described as a “500-year flood event,” so much of those losses will come from flooding. Many Florida homeowners do not have flood insurance, and when you factor rising construction costs, even with FEMA assistance, the road to rebuild will be difficult and costly. Hurricane Ian will also have a devastating impact on the Florida property insurance market, which was already the weakest in the country. I anticipate that there will be more compression in the industry with at least a few more players going under and Citizens Insurance ultimately taking more of the market share. Disasters often prompt us to pause and reflect. I’m also so grateful for our CLM community, and I would like to take the opportunity to thank so many of you who reached out to check in on our Florida team. I’m happy to report that they are all safe. It is these moments that remind me why I love being part of CLM—we have the most caring, compassionate people in our amazing community! All the best – Ronna Ruppelt CEO ronna.ruppelt@TheCLM.org LinkedIn.com/in/ronnaruppelt The Road to Rebuild 2022 AWARDS FOR PUBLICATION EXCELLENCE WINNER CLM (ISSN XXXX-XXXX) is published monthly 12 times a year by CLM, a member company of The Institutes, 2 South University Drive, Suite 100, Plantation, FL 33324. Application to mail at Periodical Postage Prices is Pending at Plantation, FL, and at additional mailing offices. Postmaster: Send address changes to CLM, 2 South University Drive, Suite 100, Plantation, FL 33324. Allow four weeks completion of changes. Advertising and editorial deadline is the first of each month preceding issue date. FRONT DESKHARNESSING AUTHENTICITY, CONFIDENCE, AND DECISIVENESS TO REDEFINE YOUR EXECUTIVE PRESENCE Together we’ll define what constitutes executive presence and introduce behaviors that contribute to elevating executive presence. KEYNOTE WOMEN IN THE WORKPLACE 2022: THE STATE OF CORPORATE WOMEN IN AMERICA We’ll reveal findings from the largest analytical study of women in corporate America conducted by McKinsey & Company in partnership with Lean In. FEATURED PRESENTATION SEE THE FULL AGENDA AND SPEAKER ROSTER AT THECLM.ORG Make way for women in insurance. Get practical, actionable insights from innovative female leaders to help you thrive in a rapidly changing world. Ann marie Houghtailing Co-Founder STORY IMPRINTING Grier Dienstag McKinsey & Company Jacqueline Montgomery McKinsey & Company WASHINGTON, DC NOVEMBER 2-3 FOCUS WOMEN’S FORUM AT6 CLM MAGAZINE OCTOBER 2022 EDITORS’ TEXTS Executive Editor Eric Gilkey and Senior Managing Editor Phil Gusman keep in touch each month through text messages. Here’s a behind-the-scenes look at some of their conversations. The Chat Room Phil Gusman Phil Gusman Phil Gusman Eric Gilkey Eric Gilkey Eric Gilkey Eric Gilkey For so long I’ve seen figures tossed out about the dollar impact of fraud and it’s been so difficult finding out where exactly those figures came from and how they were calculated. It’s great to see this well-researched report dive into the details. Coming together is indeed a theme this month, given the destruction we saw from Hurricane Ian. It’s going to be interesting to see what issues arise, since it’s looking likely that the storm is going to be one of the worst in history in terms of insured damages. There is so much that comes into play after a major storm like this causes damage in multiple ways. Both of us have covered the industry for a while, and we’re certainly no strangers to some of the coverage questions that are sure to arise. I was grateful to chat with Clyde & Co US’ Taylor L. Davis, who co- wrote the August 2022 feature on the legislative and regulatory changes that occurred in Florida and Louisiana earlier this year regarding property policies. I squeezed it in right at press, so you might have missed it, it’s on page 36. She did a great job issue- spotting the storm’s aftermath. On top of the usual issues, the article mentions how humid Florida is this time of year, and that’s sure to complicate recovery efforts when you’re talking about this much water. Matthew Smith, Coalition Against Insurance Fraud’s executive director, is also a prominent CLM member, and Triple-I is an affiliate of The Institutes, just like CLM. It’s great to see everyone come together to address a need and to close some of the gaping holes the previous number allowed for. So on a scale of 1-10, how excited were you to finally see evidence- based reasoning for the annual impact of insurance fraud? I know it’s been a burr in your boot these last 20 years or so!2023 CONFERENCES & EVENTS theclm.org/events DATES, LOCATIONS, TOPICS, AND EVENT NAMES SUBJECT TO CHANGE. Sponsorship: sponsorship@theclm.org Speaking: help@theclm.org Networking and Education In-Person DATE CONFERENCE/EVENT LOCATION MARCH 29-31 CLM Annual Conference TAMPA APRIL 19 Extra-Contractual One-Day Conference NEW PHILADELPHIA APRIL 20 Insurance Coverage One-Day Conference NEW PHILADELPHIA MAY 18 Extra-Contractual One-Day Conference NEW DALLAS MAY 19 Insurance Coverage One-Day Conference NEW DALLAS JUNE 21 Product Liability One-Day Conference NEW ATLANTA JUNE 22 Transportation One-Day Conference NEW ATLANTA JULY 18 Product Liability One-Day Conference NEW LOS ANGELES JULY 19 Transportation One-Day Conference NEW LOS ANGELES AUGUST 16-19 Claims College BALTIMORE & VIRTUAL SEPTEMBER 27-29 Construction Conference AUSTIN OCTOBER Women’s Forum & Emerging ClaimsTech CHICAGO OCTOBER 17-23 Litigation Management Institute CHICAGO NOVEMBER 30 One-Day Conference/Holiday Party NYC TBD Litigation Management Symposium TBD TBD Preventing Nuclear Verdicts Workshop TBD TBD Workers Compensation and TBD Retail, Restaurant & Hospitality Conference Next >