In today’s volatile economic climate, risk managers face unprecedented challenges in managing insurable risks while striving to gain visibility into and reduce their total cost of risk. Mark Baker and Kelly Walsh of Marmon Holdings, a global industrial manufacturing organization, will join Jason Franks of Origami Risk to present a strategic approach to risk financing. The discussion will focus on how technology can create efficiencies in critical processes and offer valuable insights, enabling more informed decision-making to effectively manage risk and cut costs. Learning objectives: Optimizing Insurance Renewal and Values Collection: Learn strategies to simplify insurance renewals and accurately collect values, ensuring comprehensive coverage at the best possible rates. Harnessing Technology for Claims Management: Discover how advanced tools can streamline claims processes, reduce costs, and improve overall efficiency. Achieving Total Cost of Risk Visibility: Gain insights into tracking and analyzing total cost of risk, enabling data-driven decisions to minimize expenses and enhance risk management strategies. Hello, and welcome to today’s RIMS webinar sponsored by Origami Risk, strategic risk financing in an unstable economy, leveraging technology for efficiency and cost reduction. I am Justin Smollison, business content manager here at RIM’s, the Risk and Insurance Management Society. Got a few notes before we get started. If you have a question for the presenters during today’s session, please submit them by writing in the question box. Feel free to ask at any point during the presentation. We will answer as many as we can during the q and a portion at the end. And for those we cannot address, the Origami Risk team will reply to you directly. Following this session, the recording will be available through the on demand events page of rims dot org, and all downloads and contact information will be accessible to the sponsor. Folks, I got couple of quick announcements. The inaugural Rims Texas roundup is coming up on August fourth through the sixth in San Antonio, and we are thrilled to have Origami Risk as a silver sponsor there. See the agenda and register through the events page at rims dot org. And Origami Risk, they are just fantastic. They will be a gold sponsor at the Rims conference twenty twenty five in Seattle, Washington. Registration will open soon, so save the dates November seventeenth and eighteenth. That registration page will also be available through the events page of rims dot org. And on with today’s presentation. In today’s volatile economic climate, risk managers face unprecedented challenges in managing insurable risks while striving to gain visibility and reduce their total cost of risk. Mark Baker and Kelly Walsh of Marmon Holdings, a global industrial manufacturing organization, will join Jason Franks of Origami Risk to present a strategic approach to risk financing today. The discussion will focus on how technology can create efficiencies in critical processes and offer valuable insights, enabling more informed decision making to effectively manage risks and cut costs. Rims is thrilled to welcome a wonderful global audience, and now I will hand it off to Origami Risks senior market strategy lead, Jason Franks. Thank you, Justin. And on behalf of Kelly, Mark, Origami, Marmon, and myself, thanks for everybody joining today. As Justin just did a great job of talking about the objectives for today, I think it makes sense. Let’s hit the next slide and and do some introductions. So, Kelly, if you don’t mind starting us off, and then Mark, and then I’ll do the same, give a quick background on yourself and your role at MARA. Sure. Thanks, Jason. I’ve been with MARA since twenty twelve, and I started out in a risk management role, insurance procurement claims, and then a little bit of data analytics project work, ad hoc projects. The last three years, I’ve pivoted to more of a data analytics role, more strategic role to focus on using our data and industry data to empower decision making. Prior to joining Larman, I was in actuarial roles, both in an advisory capacity and at an insurance company. Great. Mark? Yeah. Thanks, Jason. Thanks, Kelly. Hi. Mark Baker. I’ve been with Marmon for three years. I have responsibility for risk and insurance at at Marmon. Prior to Marmon, spent fifth almost fifteen years working for a large hotel company, and before that, spent almost ten years in the Detroit area working for large automotive and suppliers. And then before that, I practiced law as a as a litigator. Perfect. Thank you. So Kelly and Mark are subject matter experts today. I’m Jason Franks. I’m out of Richmond, Virginia, senior market strategy lead. Been with Origami for the last fourteen years prior to that spent about spent about ten years in the in the brokerage world and I’ll be facilitating the conversation and insights from Kelly and Mark. On the next slide here, this is this is our agenda. So the overarching concept of today is the strategic use of data technology for creating efficiencies and insights within each of our, you know, daily lives of risk management processes. To hit the items that you see there, as Justin said, and if you guys don’t mind, I’m gonna reiterate. As we go through today’s agenda, please feel free to use the chat box for submission of questions, and we’ll try to get to as many as possible on the tail end of the call. But in terms of our our pecking order today, we’re gonna talk a bit about Marmon Holdings, understand some of the unique infrastructure and data challenges and items that they run across as a holding company and how they’re situated to from a team, from a process, from a data analysis and technology standpoint to make insightful decisions. Those topics that we’re going hit today are, you know, exposure collection, renewals process, the concept of safety initiatives, claims technology and claims costs and closure. Marvin does have a captive, which we’ll spend some time talking about that as well. And then on the tail end of the call, we’re gonna wrap up with talking about what the future brings. So that said, if we actually, what I will mention from a housekeeping standpoint is we do have a slide deck here, but we’re gonna spend the amount of time that we have together, you know, kinda in a discussion format, putting the slide deck down, picking it up again as we change topics. So if you do find or you do see that we bring the slides down, that is intentional. So let’s jump into our next topic here. Mark, I’m gonna lean on you for this one to give us a bit of background on Marmon. We’ve we’ve been informed it’s it’s one of the biggest small business big biggest small businesses you’ll find. Do you mind talking a bit about Marmon? Yeah. Yeah. Exactly. Thanks, Jason. So as as the slide indicates, we’re over a hundred and twenty companies, over six hundred and six hundred facilities in in over twenty three countries. Just what is a holding company? So our philosophy is that we buy well run companies, and we aggregate the scale and leverage associated with them to produce an overall good result. So Marmon owns companies in food service, retail, transportation, rail, electrical, plumbing, everything that you can see on this list. We do everything from manufacturing rail cars to manufacturing auto parts and trailers, gloves, screws, bolts and nuts, brackets, and even medical implantables. And what that produces is a real unique challenge for risk and insurance, because we’re in so many different areas. But that diversity also gives us strength. Right before Warren Buffett said he was gonna retire, he actually gave a shout out to Marmon. We’re a Berkshire Hathaway company. When he said when Berkshire bought Marmon, it was already well diversified. It’s something of a Berkshire within a Berkshire, and we found that working very good as an arrangement. So we’re a mini Berkshire Hathaway. We own those different companies because they act as hedges against each other, and then we can also leverage the power of all those companies when we purchase a small company. Some people think of us as private equity, but we don’t churn. We don’t sell. We tend to buy and hold. So the unique challenges that is that produces is you can imagine an underwriter might find something wrong or that they don’t like within our our portfolio. So it’s super important for us to use data and to be able to drive that deliver that information, while at the same time, the variety of companies that we own also forces us to take high levels of deductibles and retentions. Some of that’s by design. We have a strong balance sheet. Other is just because of how insurance is bought on an industry basis. And with that, we need a lot of data to make those decisions. Data about exposures, where we’re growing, and data about claims so that we can understand that we’re picking the right retentions and deductibles, and we’re also buying the right types of insurance. The other thing that that we end up with, because of our unique structure, is we need rail insurance, and we need products, and we need fleet and premises. We have some aviation operations, so we need aviation insurance, and then we have medical products. And those of you that are familiar with general liability policy know a lot of those are excluded, so we end up with separate towers, or we end up with separate retentions and deductibles. And again, that’s all driven by data, and we need the ability to not only collect and aggregate that data, but to analyze it. Makes sense. I if we could jump into the next slide, I think we’re gonna get into our our our next topic, which is, you know, certainly, we can infer, Mark, from what you just mentioned, twenty three countries, hundred and twenty plus companies that you’re you’re dealing with, multiple industries. Everyone on the phone has a degree of variance, complexity, challenges they they endeavor on a day to day, week to week basis, but certainly can can you refer as a holding company, you guys have it on a much more amplified scale. Can you talk a bit about those unique data challenges, what you guys have done, and and ultimately, some of the insights that you guys empower those different companies and and teams? Yeah, we need to collect data across those one hundred and twenty plus companies. Part of it is for exposure collection, part of it is for premium allocation, but as important, it’s for what’s the appropriate deductibles and retentions, and do we have the right coverages in place? It’s further complicated by we’re about eighty percent US, twenty percent rest of world. We’re also about eighty percent manufacturing, and twenty percent services. So those those exposures US versus rest of the world, claims US versus rest of the world, and then how we operate manufacturing versus services, which produces different different potentials for risk, also drive that decision making. It also gives us some unique opportunities. In the current environment, there’s a fair amount of onshoring going on, so we’re leveraging our eighty percent US footprint to enable us to do that. And and so much of that is driven by data. We’re also looking at moving facilities between countries because of some of the current economic environment. And, again, that’s driven by data. What’s what are our sales? What are our property values? What are our losses? What are our claims? What would it mean to move into a different jurisdiction. So not only at the individual company level that rolls up into eleven different industry verticals, but also on a country level, and then on a type of of business, manufacturing versus services. So to make those decisions, we need a lot of data, and we need to be able to store that data and analyze it. That’s great. Mark Kelly, along those same lines, onboarding new business, you know, a a new a new company that you guys have acquired. I’ve got to assume disparate data, different formats. Any sort of structured process that you guys go through or thought process as far as, you know, learning of a new or assessing a new acquisition that you guys would recommend for others? Well, in terms of the data, our Origami instance was built out with that in mind because, Marmon, over the course of time, has acquired, many different businesses and locations. So our org structure was built out to be nimble so that as we acquire new companies, as we add new locations, it’s it’s a a smooth transition. And and we have a lot of storage capabilities and data upload capabilities when we do acquire a new business or a new location. It’s it’s a very efficient process to add those to our database. That’s great. Appreciate that. Yeah. And a a great specific example of that is we recently acquired a mini Marmon. So Marmon is a diversified holding company inside of Berkshire Hathaway, and we just acquired a company that had a very similar profile to us, albeit much smaller. And what we did is we took that company and divided up all their individual companies into our industry groups. And without a centralized data structure to organize that, that would have been a very difficult process. It was super easy. We just tagged these companies to the different industry verticals, so a transportation company went to transportation, and a lighting company went to electrical, and etcetera. So they even had a medical products company, and we tagged that to our medical company. It just made the acquisition integration, and then absorbing a company with many different industry verticals like we have such a much easier process. Yeah. And then when we open up our data collections, all the data for the locations or the business units is already populated. So it’s it’s just really easy to open up our annual exposure data collections, and then our we have other exposure data and other data around physical security and GHG emissions that that we collect. So our database is always up to date, which is really a terrific place to be rather than being in spreadsheets. That’s great, Kelvin. Thank you. So that’s a nice segue into our next topic, which is the concept of optimizing renewals and exposure collection and and how that process lends itself into coverage decisions, strategic underwriting. Do you guys mind talking about what it is that you’re protecting with the purchase and and risk transfer process of of insurance and and just ultimately some of the lessons learned and and advice that you have for those that are dialing in today? Yeah. Absolutely. So kinda kinda as a as a strategic standpoint, we organize ourselves around people, products, and property. And I lead with people because they’re most the most important thing. So the data associated with people is payrolls, workers’ compensation, OSHA. All that data is aggregated to not only allow us to buy workers’ compensation insurance, but also for us to drive safety with OSHA data and and claims data. The next area we organize organize around is products, and products is broader than that. It also includes premises, because remember, we’re about twenty percent services, so we’re at third party sites, and it also includes fleet, autos. I I include that with with liability, but that’s kind of the the products square that that all of that fits into. And why that’s important to us is because that’s how how our products and our services impact our communities and third parties. And then finally, property. And sometimes property might be the biggest financial exposure, that’s damage or destruction of our seven fifty plus facilities globally, but people and products come first, because that has the most importance to us. But after that, we organize around total insured values, property damage versus business interruption, by location, across all of those locations. So that’s kinda strategically how we organize it, and then it goes into each of our industry verticals. So what we collect in our rail business, where we manufacture, lease, repair, and maintain rail cars, is very different from what we put into transportation, which has a high products liability exposure, rising out of manufacturing auto products, modifying trucks, manufacturing trailers, for example, or what goes into our medical group where we do medical implantables, which is in its own standalone program because it’s excluded from liability. So you can see how we organize around people, products, and property, and then inside of that, we organize each industry vertical. And to add companies, move companies, acquire additional companies, the ability to organize that data we have to have the ability to organize that data, and hence, we lean very heavily on our our data collection system. So then when it when it comes specifically to exposures, I’ll I’ll I’ll turn it over to Kelly, and she can talk about what she and the Origami crew do to to bring all that exposure information into our data collection process. Sure. Yeah. Well, as stated before, as we acquire new businesses and purchase new locations, we are currently building a change management system for interim changes, and then we we also have an annual data collection, which is very robust. And the business units get a link, an origami link. They go in, and they they complete all of the the required underwriting data. And, additionally, we also collect risk management data, for instance, around physical security. So that would be on the property side. And then for workers’ compensation, it’s the typical, you know, payroll by state and class code. A future state for us is, using our, centralized, consolidated accounting system to pull that data in in an automated fashion. We’re not quite there yet, but but that project is in process for work comp payroll. Vehicles, same sort of, you know, typical risk management collection of of the vehicles by weight classification. And then, again, additionally, we’re working on a vehicle management’s portal as well as a data collection around best practices for fleet management. Marmon doesn’t have a lot of companies with big fleets. We do have a handful with fleet. So we also offer loss control resources to those those with the larger fleets. Am I forgetting anything? No. No. I think you kinda got the how people, products, property, comp, liability, and auto, property insurance. So we we kinda talk about it strategically, and then how that turns into exposure collection of all that data. It also drives a bunch of other opportunities for us, and we’re gonna talk about claims and safety in a minute, but overlay all that exposure information with claim data, and now you can start making decisions about deductibles, retentions, looking at the insurance programs that you’re buying to make strategic buying decisions, and then also looking at just trends, and trends not only in insurance, but in claims, and look at your limits, in addition to your deductibles and retentions. And we’ll talk in a minute about captive, but then that’s where our captive insurance comes in. But none of that is possible without collecting that data, organized into those three strategic areas, then broke down by industry vertical, and then by individual companies. Some of that is responsive to insurance companies, when they ask us how many rail cars we have, or how many medical implantable, what’s our sales for our medical implantables. Some of it, but then most of it’s driven by our strategic decision making on how we want to handle risk at Marmon, and we’ll talk about safety and claims in a minute. The other output from that is it allows us to negotiate letters of credit, because we do take on big retentions and deductibles where we use insurance companies to help with that, so we end up with letters of credit that helps drive that that decision making. And then finally, it allows us to set premiums within within our captive when we decide not to risk transfer through outside insurance companies, and we use our own insurance companies. Maybe, Kelly, you could touch a little bit on even something further that isn’t necessarily exposure related, and how we use our property locations as our source of truth, and then some other additional attributes or advantages or opportunities that that produces. Oh, sure. Yeah. So our real estate portfolio resides in Origami and is considered the source of truth for all of Marmon’s leased and owned locations as well as our third party customer and supplier locations. In addition to the the basic address and occupancy information, We’ve pulled in property protection engineering data, including all of our current open and closed physical and human element engineering recommendations. So those are sort of real time. They’re updated on a monthly basis. And then risk reports from the property insurer, COPE reports, sketches are download they’re they’ve been uploaded by location and can be downloaded via Origami. Physical security data, key contacts by location, greenhouse gas emissions data. We do a a day greenhouse gas emissions data collection out of origami, so all of that data exists by location. So I don’t know if this is too granular, but just it’s it’s it’s a really excellent way to organize the data to have a unique location ID. So for each and every location, they have their own unique ID, and it’s a hyperlink. So you can you once you click on it, you you’re you can cascade down the panels and and obtain any of this information in real time and and very efficiently. And then a recent addition to the real estate portfolio in Origami is the addition of links to third party sites. So we house our lease lease documents in a third party lease accounting system, and Origami was able to use use hyperlinks so that the two systems are are adjoined. So if you have a leased location and you wanna look at the lease, you wanna review the lease or see when the lease gonna expire, the all of the lease documents, including the addendums, are are sitting in that unique location ID, and you could just click on the links and and instantly have access to all of the documents. And we’re working on the same process for our our owned locations. Purchase and disposition documents are living outside of origami, and we’re gonna set up the similar linkage for those locations. So it lets us accomplish really two things. One is the tactical, which is do we know what we own and where? Whether we’re owning it, leasing it, insuring it, what’s its value, and where is it? And that’s that’s I mean, with seven fifty locations in twenty three countries, that’s a pretty core tactical thing that we need to happen, and it happens with great efficiency. But it’s also led to a bunch of strategic opportunities. So we’ve been able to partner with our legal department on reviewing leases and disposition of properties, and that decision making I was talking about where do we close a factory in one country and open it up in another country? Do we consolidate two factories? We can overlay that with the with the property exposure, the BI exposure, the Nat Cat exposure based on its location, and really help management make those decisions. So we’re not just the insurance buyer who’s making sure that it’s properly insured, very important, by the way, but we’re also helping management make key decisions about the organization. So instead of being told we just bought a factory that’s on a fault line, we actually get to participate in that in that decision making, which is which is awesome. It’s also led to some really cool other cool stuff, like Kelly mentioned, with helping out with leases. But also, one of the initiatives that Marmon has is greenhouse gas collection, and we use that to measure the impact on our communities globally. And since we have a database with every location and an ability to collect data, it just fit really well into that model. So we’re not responsible for that, but we’re able to partner with folks in our legal and compliance areas to help facilitate that process and make it a lot easier for them. So it’s it’s just a a great example of how risk is viewed broader than just insurance, and that we’re helping the organization not only strategically and tactically in other areas, but also that we’re helping them make those strategic decisions on things like buying and selling properties. No, that’s great. Thank you, Kelly, thank you, Mark, and that’s a nice success story of using data and and being seen as, you know, experts and and a seat at the table, you know, prior to decisions being made. So that’s that’s a great outcome. Mark, you had mentioned that we were going to hit the claims and safety initiatives. Certainly, this is near and dear to a lot of folks’ roles listening in today. Certainly, the concepts of preventing losses, putting controls, putting improvements in place to mitigate risks, to create a more safer environment for our vendors, for our own folks, for our organizations and then certainly on the claims side, utilizing technology, data insights, trends to to accurately and properly manage claims and and provide the oversight and and push things to closure efficiently, but also from the standpoint of accurate financials and and fair financials to close out claims. All that said, do you guys mind chatting a little bit about some of the initiatives that you have in the safety and claims standpoint and and what you guys have been using data and technology for there? Yeah. Absolutely. If you don’t mind, Kelly, I’ll I’ll lead with some of kind of the the areas that we’re focusing on, and and maybe you can jump in with some of the great data tables and and click through dashboards that you built out there. I mean, you haven’t built out, but others have built out for you with your design, and they’re just absolutely awesome. So going back to that same concept, we collect exposure data based on people, products, and property. We also collect claims data and other safety related data based on people, products, including fleet and premises and property. So people, obviously the most important thing. Nothing’s more important than people. So we collect a lot of data on frequency of claims and severity, and then we measure severity both on cost of claims, which everyone’s interested in controlling the cost of claims, but I just look at that as a proxy for severity. The more money being spent on a claim is the more severe thing that’s happened, so how can we stop that from happening again? Then we also use OSHA data, which is great because you can compare it to the Bureau of Labor Statistics, so you know your total recordable injury rate by industry, and you know your days away restriction or transfer rate by industry. So we aggregate all that data by location so that we can see payroll growth, how is that trending compared to claim growth, and then hours worked, and how is that trending compared to days away restriction or transfer. So the frequency of the number of incidents measured by the severity, either by cost or lost days. That’s a super powerful tool that, that’s a super powerful amount of data that you can use not only in insurance buying decisions, but you can also use it to isolate trends, and then to lever that into the ability to work with businesses to provide them with resources to prevent injuries and claims on a go forward basis. And then before I move into products and property, maybe, Kelly, you could talk a little bit about the awesome click through dashboards that enable management to be able to to see that. And then on top of it, the really great thing that that you came up with where we’re measuring work experience against claims and how that produces a training opportunity. Sure. Yeah. It was just yesterday we had our first, We have annual meetings with our, executive management teams, by industry group. So we had our first meeting yesterday, and and, one of the, series of dashboards that the origami development team and I have built out relates to workers’ compensation claims by cause of loss and by body part injury type. And so I was able to to provide an additional dashboard that contains the NCCI industry averages, average incurred by both injury type and also by cause so the businesses can compare themselves to the industry. And then there’s also a breakout of current year activity, and that’s real time versus last five years, paid and incurred claim counts in dollars so they can compare themselves over time. And then there are are also roll ups to the holdings company. So another, if if you will, another benchmark to compare to. But as we look through the data, it’s in it’s in a sometimes they’re in a pie chart format. Sometimes they’re a doughnut. But if if they see something that they wanna investigate further, the dashboards are clickable. So, you know, we can say, okay. You know, cause of injury is back, and this there’s a a large dollar amount associated with it. So then we can just click on that and and go directly to the list of claims that comprise that total incurred. And then within there, we can click further that each claim is a hyperlink and and drill down to the description of the claim. So we were actually doing that during the meeting yesterday, and it was really helpful to to be able to talk about the claims in real time as opposed to having to make a note and get back to someone later via email after you go look it up in the TPA system. So that’s that’s work comp. And then as Mark mentioned, I developed a new a new dashboard relating to employment duration. So injuries for employees that have been with their company less than a year. We’re gonna we were focusing on that this year. So compared to industry, again, compared over time, and then compared to Marmon in total rolled up. And that’s that those dashboards also have drill down capabilities so you can investigate further which claims are are driving there. On the OSHA side, I think we’re kinda unique because we collect OSHA data on a worldwide basis. We we assign an NAICS code to our non US businesses, and we also give them instructions as to what how OSHA defines a recordable injury. So they participate in our quarterly OSHA data collection, and and that data is used for quarterly quarterly business reviews with the executive team. Really important that the safety of our employees. So then we put together the business unit OSHA results, and then we can roll those up into each of the industry groups and then Marmon and Total. And to get at the industry TRIR and DART, we use hours worked as the weights to give give appropriate weight to to those various categories using the BLS data. Yeah. Great a great example of that is is, you know, the manager, the business leader asking, what’s with all these hand injuries? And Kelly was able just to click right through to the facility, and the actual injuries, and it was very eye opening. They’re like, we’re gonna fix that. That that should not be happening. So that real time data feed was was so very important and and useful. Beyond people, we talked about products, which includes premises and or third premises and fleets. So for products, we’re able to identify losses by product, and then assign those back to the company’s locations and industry verticals that we’re in. And, like, we keep talking about the uniqueness of Marmot and all our industry verticals. It it it would be the same to assign it back to a manufacturing location, or to assign it back to an operating location, or to assign it back to a type of sale that you’re making, and be able to drill down into that industry or that product or that location, and be able to determine the not necessarily a root cause analysis, but what’s driving those losses and to be able to share that with management. It gives us a risk management, collection of exposures, buying insurance, retentions, and deductibles, but it also gives our leadership an insight into the profitability of their products, because it’s driving a lot of losses, or it isn’t driving a lot of losses. And it’s the same whether or not you have a premise, third party premises exposure, if you operate buildings, or also we do the same thing with fleets. So we measure against the companies that have large fleets, and what’s driving that. That’s led to an initiative this year that tackling, where we’re looking we rarely don’t centralize, but we are looking to centralize fleet exposures, and I know a lot of you know about the impact that a lot of companies have been seeing from vehicle fleets and truck fleets, and the cost of claims, and the cost of litigation. So that’s led us to, that data has empowered us to work with those companies, and to give them resources to reduce the opportunity for loss in those spaces. And then on the property side, we mentioned that we collect a lot of engineering data, whether it be cope or whether it be engineered recommendations about making changes to the facilities, adding sprinklers, improving sprinklers, reducing the exposure for flood, the the the current state of the roof, and and what what condition it’s in, all of that allows us to, again, make decisions about retentions and deductibles and and limits, but it also gives our management an insight into key locations that are driving sales and profitability in the organization, and the current state of those locations, and whether or not they wanna reinvest in them, whether we wanna look at new locations, or or in some scenarios where we might be exiting a business or exiting a location, the importance of then pivoting to human element exposure, so like house keeping, and are you practicing good hot work procedures, are you monitoring impairment of your systems, are you inspecting your your systems, taking those steps to prevent loss when you’re not as willing to make a large investment in the facility because it might not be a long term facility. Might be leasing something, and we’re gonna buy or build. We might be looking to expand at another location. So then it allows us to pivot with our management to doing all those day to day things with the teams to make sure that we don’t have exposure to a fire, we don’t have exposure to the damage or destruction of the facility. None of that could happen without data, and we’ve collected all that data. And you’re kinda hearing a consistent theme here where we’re we’re led by a bunch of engineers in all these companies, and my boss is not only a lawyer, but also an engineer, and they really, really thrive on data driven decision making. And that’s not unique to Marmot. I’m sure most of you have heard that in your companies, that people want data to make decisions, and the ability to organize this data across very understandable, not like work comp and liability and property, but people, products, including fleet and premises and property. And I should trademark that. Feel free to use it. You heard it here first. Right, Mark? Yeah. That was a good takeaway. Absolutely. So we got a question that came in from Chirag. Were the dashboards built in Origami or a third party tool like Microsoft Power BI? No. And if you guys Go ahead. Oh, sorry, Kelly. After you Oh, no. They were built directly in Origami. They have the capability to be built directly in Origami. But but I think the data is exportable to Power BI. I know some business some, yeah, some businesses prefer to use Power BI, and you can certainly load the data into that. We’re you know, since we’re a bunch of engineers, we kinda like to build stuff. So we tend to tailor things for our org for our businesses, and they give us feedback on what they wanna see. But, yeah, you can export the data into into Power BI, and we know a lot of companies that prefer might prefer that platform. Alright. And I think this is a question for Kelly. Yeah. And this isn’t one from the crowd, but I’m gonna I’m gonna tail tail on that last one. You guys obviously are a bit further along with respect to data adoption and other peers within Marmon leveraging the data, the insights, the dashboards. Any best practices or recommendations that you would say, you know, this is how you get others interested in the data or be seen as a a source of data and insights that you’d recommend? Yeah. I think we started out with being the the source of truth for the real estate portfolio, and then word gets around, and and people need information. And so it’s kind of been an organic growth process where people will reach out to me and ask if they can have certain data that is living in origami. And they can consume the data either by you know, it’s up to them, and I usually will set up a meeting to to just kinda scope out what it is that they need. They can either have a a scheduled report delivered to them via CSV or Excel, or, they can get direct access to Origami. We just finished building out, OSHA dashboards for each of our group industry group, CFOs so that they can keep track of their OSHA data on a quarterly basis. As I previously mentioned, they’re responsible for reporting that that data during the quarterly business reviews to executive management team. So so now they all have direct access to Origami. But others, you know, they they’d rather just have a report land in their inbox. And so we have a third party real estate consultant that consumes our location’s data that way and innovation team, leverage spend, HR, are all That’s great. Yeah. Thank you. Alright. So we’ll keep moving along. I know we’ve got about twenty minutes left. Wanna make sure that we have enough time for the q and a. The next topic that we’ve got here, certainly, you guys mentioned on a bit earlier that you guys have strategic use of a captive. Hoping you guys can give us a little bit of the background on how long you’ve been precipitated using it, some of the ROI, and just general thoughts on anybody who’s potentially considering one. Yeah. And and for us, it was it’s a little bit of a necessity, and I know people have differing views on on the use of a captive. We take a lot of risk. We have high retention and deductibles, and what it allows us to do is to then insure those deductibles and retentions for each of our individual companies. Mormon may have a large risk appetite, but many of our companies are much smaller, And they’re driven by their their income statements and balance sheets. They operate independently. They make own their own decisions about operations. And to help them weather bad events, the captive certainly can step in and do that for them. So for us, it really makes sense because of our different industry verticals, and our, in some cases, inability to buy insurance, or insurance is not a good spend, or we don’t think it’s a good spend. That is third party insurance outside of our own insurance company or captive. So it it’s really worked well for us. That might not be the fit for other companies, but the important thing is is if you are going to utilize a captive, it’s really data driven. Understanding the exposures, understanding exposure changes in growth, understanding the claims, and then understanding the position the captive is taking inside of the organization. It can write deductibles or retentions, that’s generally how Marmon uses it, but it could also write lines of coverage that are uninsurable, or more difficult to insure. It can take co shares up towers. So but all that is data driven. Yeah. Are the losses going up and down? Are the exposures going up and down? And then how do you model and price insurance appropriately for the the captive? So it we went through a big exercise before we started our captive to understand what we were doing. Brokers can drive that. Other consultants can drive that. We thought that was very important foundationally, and then we test the captive against it. And it’s essentially a business case for an insurance company, and is it meeting the goals that you that you set out? And that’s all data driven. So it’s an important tool for us, but I would encourage others that if you’re interested in a captive to go through those steps. That’s great. Thank you, Mark. So our last topic is the concept of future initiatives with evolving risks. So I I believe everybody can agree that, you know, certainly, the the adoption of AI is a hot topic, the ever changing risk environment that many of us and and certainly in the manufacturing space are are seeing. Is there any anything you guys can share with respect to projects that you guys are considering, new ways to analyze data, and and certainly some thoughts around AI? Yeah. So for evolving risks, I’ll touch on two projects we’re working on, and maybe Kelly wants to comment on some of the things that she’s building out from a data standpoint. And that is is fleet size and fleet risk management. I know that’s that’s a hot topic for a lot of risk managers right now, so understanding fleet size, what type of vehicles we have, where they’re operating, and then all those controls surrounding it. And then the other is is physical security of our premises. We’ve seen an uptick in social engineered theft, and it isn’t impersonating the CEO to go buy an Apple gift card, it’s actually pretty sophisticated schemes where they’re getting into bill of lading systems, and either buying or receiving product that wasn’t intended for them. So our ability to understand our fleet and collect data around it, our ability to understand our premises and collect data around it have led us into two emerging risk areas that we’re seeing, but that can be applied across anything. If you see an emerging risk in your organization, do you have the capability to collect data surrounding it? Both of those products, we’re collecting baseline data, and then from that, we’re going to build out opportunities, and then we can then recollect data or manage those project opportunities. And I don’t know, Kelly, you wanna talk a little bit about that, and then and then we can pivot to AI and chatbots and some other cool stuff that we’re working on. Oh, sure. Yeah. So we’ve built out dashboard around physical security already, and and we’re meeting with consultants to understand best practices. And relating to AI, I just wanted to test it out a little bit. So I I’ve discovered, and I’ve I’ve read this too, that the more more focused a question you ask it, the the more refined an answer you’re gonna get. So it’s it’s almost like brainstorming with your colleagues without them being there just to get some some initial ideas. And then once it it it provides you with this document of, let’s say, best practices for fleet management. And then, you know, most of it’s pretty good. And then if there’s a particular focus area, then you can, you know, continue to ask it iterations of questions and and provide some really interesting results. But for Marmon, data security is is critical, of course, and for all of all of you out there as well. So Marmon policy right now is just to use our SharePoint instance of Microsoft Copilot functionality for AI testing so that the chat’s secure and protected within our Mormon environment. I’m sure all of you are aware that if you you just go out on the Internet and start using AI, if you upload any datasets to it, it becomes public information, and, of course, no one wants that to happen. So so that I’ve that’s what I’ve been up to with with the AI. I’ve I’ve tried a little bit of analysis in Excel, and I’m it’s kind of a mixed bag. I think if you have too many data fields, it’s gonna give you a lot of really erroneous results and uncor you know, it’ll try to find correlations where none exist. So so I’m working on on refining there. And then in terms of other initiatives, I do a lot of work for our legal department, including compiling KPIs and legal spend data and and results. And right now, that’s all existing outside of Origami, and that’s that’s an initiative for me for next year to bring that all into Origami because it’s just such a nice platform for reporting out and allowing the general counsel to have access, and then they have that drill down capability into the data, which is which is really a fantastic feature. Some other things that we’re working on as emerging, and and, again, it’s data driven, and our ability to collect and analyze this data are cameras and images from cameras and how we’re utilizing that, whether it be fleet or premises, telematics surrounding fleet, and then other telematics that you can glean from various operations. We’re doing three d printing of both aviation parts and medical implantables, So that’s a new emerging area that we’re entering into, and that we wanna be able to collect that, and understand those new uses. And a lot of that is quasi or actual AI based, where they scan a part, and then use that to manufacture a part, they scan a a body part and uses it to manufacture a replacement body part. And then and then inside of risk, we’ve deployed a chatbot. So we have a pretty robust risk management website inside of our internal website where people can go and learn how to file a claim, or how to how to get a c a certificate of insurance, a COI, how can I get a surety bond, a customs bond, All stuff that we’re all familiar with? And what we’re really trying to do is get out of the email exchange on that. So instead of Mark and Kelly being the answer folks for various questions, we’re really trying to push people to, first, our web page, and now deploying a chatbot. So how cool is it is you just go to the risk management web page, there’s chatbot there, and you type in how do I file an auto claim, and it tells you what to do. And the information that it’s it is based on is already preexisting information that we’ve built in our web page, or our broker has has provided. So it’s it’s really not that hard, but to Kelly’s point, it’s not that hard to deploy. The tricky part, to Kelly’s point, and she’s spot on, is that it still isn’t that whiz bang technology that we think it is, and if you don’t ask the right question, you get the wrong answer, And if you don’t ask a a detailed enough question, you don’t get a detailed enough answer. And then your customer just gets frustrated, and then they’re emailing you, or calling you, saying your chatbot doesn’t work. So what we’ve learned from that is that how we’ve organized or the information that we have, we can do a better job of answering those questions, and then the chatbot will be able to answer for them. So that’s a work in progress, but we’re pretty excited about that, because we’re harnessing the power of technology to to help our our organizations. And then the last thing is all this data exists in a data lake, and we haven’t unleashed AI on it yet, but there’s tons of tools that you can use to look at data in a way that we’ve never even looked at it before. So we’re not collecting data for the sake of collecting data, we have very specific purposes for that data, but one thing that we are excited about is what’s coming that we can use to mine that data to find even more interesting and better opportunities, only to grow the business, but to make sure that people, products, and property are all protected from loss. That’s great. Thank you, Mark. Thanks, Kelly. I’m learning there’s probably never a dull moment on your guys’ team, and it’s nice nice to see that you guys are are forward thinking and and continuously, you know, pushing for for new ways to to help your teams and organization. We’ve got about ten minutes left. So we’ve talked through claims safety, captives. We’ve talked about the renewal, underwriting a bit. I think this is probably a good point as any to say, you know, appreciate your your time and and let’s take a couple questions here. I’ve got a couple here. Maybe we can have maybe two or three of them. The first one is related to data security. How how would you how would you ensure your data is protected, and how do you safely share it with brokers and or outside parties? Yeah. So with the brokers, I set up a team site, and I control access by folder. So when we have our underwriting submissions ready to go, I’ll upload those to our broker slash Marmon team site. And then whoever I give access to has the ability to to download that data, but no one else. And then as far as claims go, when we’re working with coverage counsel, we use law firm secure websites to to transmit files. That’s great. We just had one that came in, and, Kelly, I’ll stick with you on this. Are the locations entering their data directly into Origami? Would you would you have any recommendations or advice with respect to decentralization of data coming in? Yeah. So they do. On an annual basis, we get our replacement cost insurance values, and and those are all entered into into Origami directly. The businesses receive a link and, you know, instructions as as to what they need to provide. There are also reference documents within each data collection, you know, definitions, and because some of the the people entering the data may have never done it before, or, you know, there may there’s some turnover with generally, it’s the controller entering property information just to kinda help them along with the process. And then our contact information is always contained within the collection as well if anyone has questions. But, yeah, they do enter it directly. That’s great. We’ll take one last one. Any suggestions if my leadership team or legal teams are too conservative and take a stance that they’re better off not knowing the insights behind the data and thus don’t want to make investments in improving data processes? I think you guys wanna pick that. Yeah. I can I can jump in and then please, Kelly, jump in also? You know, that’s kinda along the lines of the other issue we were we were talking about on the importance of data and data driven decision making, and it also aligns with some of the things we were talking about earlier where we’re involved in greenhouse gas collections and lease versus buy decisions and the source of truth for our real estate portfolio. And I imagine there’s some folks out there going, like, I can’t keep up with my day job. Why in the world would I take on all those additional tasks? So so the the kind of the four the base question there is is that, can you expand risk beyond just insurance buying? And we’re certainly interested, in doing that. And and to do that, having data and be able to analyze that data is is kinda core to that. And then then the corollary of that is, is there any downside to all this data? And sure, there is. I mean, folks could say if you’d never collected this data, we wouldn’t be in the position we’re in because now we look weak, because we had all this information and we didn’t act on it. We’re just at Marmon, we’re just really big proponents, and I’m a big proponent of this is I would rather have access to the data and be working on various projects that we’ve prioritized than not have the data and not understand it. Years ago, when I used to litigate cases, my mantra was always the I’d really, really rather speak to a jury about not being as good as I thought I was versus I didn’t bother to do it because I didn’t care. And I’m not saying people don’t care, but what I’m saying is that the the pitfall of data, I think, is always outweighed by the opportunities that you can glean from the data. Frank? So I know we’ve got a couple more questions here. I think in the interest of time and since we’ve got a closing message from Justin and REMS, we’ll we’ll probably round back and get some answers there. But just wanna reiterate, Kelly, Mark, thank you guys for your insights. It’s been great to hear from you guys directly and appreciate your time. So back to Justin from REMS for a closing message. Alright. Thank you, Jason. Special thanks to Kelly Walsh and Mark Baker of Marmon Holdings and Jason Franks of Origami Risk for their time and expertise. The Origami Risk team has your questions and will reply to you directly if we didn’t address yours today. A copy of this webinar will be archived on rims dot org within a few business days. Now there are lots of resources for you to And guess what, folks? They are on your screen right now. Scan the QR code to visit the home pages for Origami Risk and Marmon Holdings, and be sure to follow Origami Risk and Marmon Holdings on LinkedIn. Couple of quick reminders. The inaugural RIMS Texas Roundup is coming up August fourth through sixth in San Antonio. We are thrilled to have Origami Risk as a silver sponsor there. See the agenda and register through the events page at RIMS dot org. Origami Risk will be a gold sponsor at the RIMS CRM conference twenty twenty five in Seattle, Washington. Registration will open soon. Save the dates, November seventeenth and eighteenth. Finally, RIMS is global, and we would love for you to build your network with us. Visit RIMS dot org slash membership to apply for a RIMS membership. This was a fantastic session.