Despite describing himself as “not a claims person” by background, Falchuk’s leadership is bolstered not only by his experience in insurance underwriting and consulting, but also by his work as an author, life and executive coach, and TEDx presenter.
On the Bubble
Like many, Falchuk’s career in insurance began by accident and with a bit of luck. After accepting an internship with Liberty Mutual between his junior and senior years in college, he was hired full-time after graduating early. His hard work paid off when the dot-com bubble burst soon after. While job prospects evaporated for many of his classmates, Falchuk was off and running.
“The hardest thing I deal with is figuring out how to keep our team as small as humanly possible while also managing exploding growth. To be successful, you have to be extremely selective in your recruiting.”
An Interview to Remember
When hiring claims professionals, Falchuk gives prospects real claims scenarios, then judges how they respond. He’s looking to see how they talk to him, their instincts around coverage, and the appropriateness of the payment. He says he values a candidate who gives the best coverage possible, not someone who looks for reasons to deny.
Changing Cyber Coverage
“There is a trend in cyber coverage of frequency over severity. Indemnity costs for ransoms typically are on the low end, but process costs like managing the forensics, notifications, and public relations are going up.”
Falchuk says hacking has become like a business in the most ludicrous ways. He says hackers have asked for “endorsements” following a ransom payment, similar to referrals on LinkedIn. He says hackers seek testimony from their victim companies that they can give to their next target in order to demonstrate that once payment is made, the hackers really will leave.
Value of Diversity
“You need people who can think differently, who are going to bring new ideas, and who will challenge what we’re doing, and keep the whole experience as rich as possible. It’s crucially important.”