We recently had the pleasure of hosting the second annual 360 Day! This year’s 360 Day proved to be a phenomenal technical conference and networking opportunity where Risk Managers shared their experiences, expectations, successes, and challenges with the (re)insurance sector.

Thanks to the support of all our sponsors: AON, Inter, Marsh, Willis Towers Watson, Advanta, Analyza, R&G Espinosa, RTS, Sedgwick, Rimac, Ryan Specialty, and Zurich!

Nearly forty-five risk managers from international companies across all economic sectors, as well as selected market actors, participated in transparent and technical discussions.

Panels led by risk managers and experts on issues ranging from natural disasters to artificial intelligence (AI) guided conversations that addressed pressing issues, facilitated new partnerships, and explored innovative solutions for diverse risks.

“There should be more opportunities for intersectoral collaboration, such as the 360 Day, to foster collaboration between markets, experts, and stakeholders” — Energy Risk Manager at the 360 Day

Our panel on Natural Disasters, moderated by Ricardo Espinosa of R&G, was led by Ramón De la Vega Rodriguez of Telefónica, Diego Dominguez of Prosegur, and Javier Guardia of Liberty Specialty Markets.

Risk Managers and experts discussed recent cases that outline market realities amidst a changing environment.

Natural disasters’ increasing intensity was front and center, as these have significantly impacted underprepared coastal developments, often revealing inadequate insurance premium minimums.

Another critical issue discussed was the necessity for independently verifying compliance with preventative natural disaster regulations, such as construction codes. While markets often assume regulations or institutional oversight ensure compliance, natural disasters have proven otherwise.

Consequently, risk managers argued effective coverage requires increased cooperation with regulators to ensure appropriate mitigation strategies.

Public private partnerships and increased communication with regulators to relate the noxious impacts of poor enforcement and noncompliance were proposed to avoid premium inflation and market drain.

Additionally, data sharing was highlighted as essential to demonstrate the need for regulatory updates and for improving risk-assessment technology.

“Collecting data is crucial to predict and mitigate natural risks, and such data collection ought to be in sync with local realities” — heard at the 360 Day

Among the key lessons learned for mitigating natural disaster risk were making disaster-recovery decisions speedily, ensuring quick loss assessments and guidance and transparency from (re)insurers, as well as establishing risk protocols and clear, detailed insurance policies to avoid unnecessary tensions.

Next, we heard from Iberdrola’s María Ortiz de Guinea, Banco Popular’s Javier Mercado, Marsh’s Andrea Catalano, and Ryan Specialty’s David Gonzalez, moderated by Analyza´s Alvaro Montoya as they spoke about D&O Risks in Face of New Global Sustainability Regulations.

Risk managers explained D&O risks are increasingly volatile as they fluctuate across jurisdictions. Some regulators are more aggressive and will mandate ESG-related disclosures while others are opposed and may even prosecute companies adopting ESG initiatives.

“Risk managers have to balance the diverse regulatory approaches to sustainability when mitigating this class of risks”— heard at the 360 Day

Industry experts underscored how stricter regulatory environments and clashing regulatory approaches to ESG have increased risk exposure of D&Os. Insureds were recommended to make ESG-related decisions in conjunction with experienced counsel to fulfill sector and regulatory requirements. 

The difficulties inherent to D&O coverage through captives were also discussed, as opposing directives from captives and leadership can cause friction when strategizing risk mitigation.

The conversation then turned to the impact of emerging technology, e.g., Artificial Intelligence (AI) and blockchain, in expanding D&O risk exposure.  The risk of making poor business decisions on the basis of unsupervised or unvalidated AI feedback attracted lively debate.

Experts predicted that the event-driven nature of cyber risks combined with hardening cyber regulatory environments will increase liability for boards of directors rather than just for IT professionals.

AI and Risk followed.  Advanta’s Tomás Fourcade moderated Javier Bastarreche Bengoa from INDRA, Belén Navarro Rull from Zurich, Alejandro Guevara from Liberty Specialty Markets, Barbara Carrizo from Arcos Dorados McDonald´s, Matthew Kelly from Trans Re, and Juan Carlos Gamboa from Grupo Liverpool.

AI’s specific impact on risk was extensively discussed by the experts and risk managers of  companies deploying the technology.

The digitalization of business operations has expanded cyber-risks and solidified data protection as a priority akin to product quality or client satisfaction, explained panelists.

Risk experts noted that AI and similar technologies’ ubiquitous use has increased awareness of the need to mitigate cybersecurity risks as losses can quickly become catastrophic.

Participants were reminded that growing human-to-AI interactions are generating new risks and coverage scenarios that resemble the “silent cyber” era of a decade ago.

“The human is the weakest link in the cyber chain, and artificial intelligence is going to exploit this weakness, blurring the line between fact and fiction and luring in more victims”— heard at the 360 Day

However, rather than rejecting AI for its risks, experts recommended that businesses adapt the technology to their specific needs, uses, and expectations.

Creating bespoke AI programs and corresponding risk mitigation solutions and protocols to ensure safe and effective deployment were proposed as wise first steps.

Recent trends and events in the region impacting companies’ risk exposure were outlined in the US-Latam risk differences panel moderated by RTS’ Juan Guillermo Uribe, including Clarios’ Emilia Carranza-Gomez, Sacyr’s David Gonzalez, Gruma’s Jesus Rodriguez Treviño, Chubb’s Angel Diaz, and AES’ Jessica Garcia Diaz.

California’s recent wildfires – with a projected $250 Billion in overall economic impact and about USD25 to 40 Billion in insured losses, potentially surpass hurricane Katrina as the worst natural disaster in US history – were cited by experts as inciting categorical risk-management transformations both in the US and abroad.

Panelists also noted how deepening international economic ties coupled with festering political tensions between the US and Latam threatens business continuity and muddles risk calculations.

Stakeholders were advised to adopt significant changes to their risk-management strategies.

“The insurance industry must reevaluate underwriting practices, expand investment in mitigation, and offer new coverage options” — heard at the 360 Day

Discussions also covered the challenges of navigating the US’ regulatory system and the need to perform state-by-state risk assessments given differing applicable laws.

Looking towards Latam, panelists underscored the difficulties present in the Caribbean vis-a-vis implementing effective and competitive international programs.

The 360 Day concluded with a comprehensive discussion on Captives in the current risk and market context. This senior panel, moderated by Sedgwick´s Roland Riviere, showcased the experiences that Tommaso Mascarucci, Sergio Toro, and René A Martinez had with their previous employers of Ecopetrol, Cementos Argos, and CEMEX, respectively.

Harnessing the recent growth in captives’ popularity, the panel addressed questions and issues relating to captive creation and regulatory, financing, and staffing considerations, as well as jurisdictional differences amongst the domiciles of choice.

“When designing a captive, companies should ask themselves: What is the problem we are trying to solve?” — heard at the 360 Day

The integral importance of actuarial imprimatur on any captive project was stressed, as actuarial approval is the ‘proof of concept’ for captives.

Timelines for captive establishment were discussed, such as 4-to-6 months to create a functioning single-member captive, or one-to-two years for a multi-member captive.

Experts also described expected returns on investment from captives, emphasizing captives’ long-term nature and higher costs than insurance for initial years yet ultimately more affordable in the long run.

The second annual 360 Day was a resounding success, bringing together industry leaders to tackle the most pressing risk management challenges of our time.

From intensifying natural disasters to evolving D&O risks and the ever-growing implications of AI, discussions provided invaluable insights for managing the future of risk.

The event underscored the importance of collaboration, proactive risk mitigation including captive solutions, and data-driven decision-making to navigate an increasingly complex landscape.

Thank you to our sponsors and risk managers in attendance!

We look forward to continuing these critical conversations at next year’s edition!