Leading Lessons from RIMS 2025 (Part II)

At RISKWORLD 2025, the conversation around risk management expanded to address the importance of proactive governance, innovative thinking, and a strong organizational culture in navigating an increasingly dynamic risk landscape.

Industry experts shared these crucial considerations for risk leaders.

6. Legal System Abuse Continues to Drive Claims Costs

The surge in nuclear verdicts, high settlements, and third-party litigation funding is accelerating the cost of claims, placing growing pressure on carriers and risk managers. It is critical for everyone in the industry to help change the narrative around this issue, which may help shift how the public views the problem. While some states have been successful with tort reform, most states still have no guardrails, and limiting legal system abuse’s impact requires additional support.

7. Balancing Automation and Human Expertise May Alleviate Claims Handling Challenges

With adjuster shortages on the rise, many third-party administrators (TPAs) are taking advantage of the efficiencies provided by AI to support claims management. AI-driven tools can improve communication workflows, but it is important to note that its use is primarily for high-frequency, low-volume claims. Human expertise balanced with technology is necessary throughout the claims handling process, especially in complex claims resolution.

8. Captive Insurance Programs Are Evolving Through Structured Reinsurance

Once designed for risk pooling and an alternative to separate accounts, captives are now a widely accepted total cost of risk (TCoR) management entity. Captive insurance entities are increasingly leveraging structured reinsurance solutions to manage volatility and optimize capital. This evolution enhances cost efficiency and supports comprehensive risk financing strategies.

9. Addressing Gun Violence Involves Legal Considerations

Organizations are developing strategies to address the complex risk of gun violence, focusing on crisis response, legal considerations, and cultural change initiatives to enhance safety and preparedness. Some states have extreme risk protection orders (ERPOs) that temporarily separate individuals who are in crisis and may be a risk to themselves or others from firearms through a court order, without facing criminal charges or a permanent prohibition. Data has shown that these laws can help prevent suicide and mass shootings. Risk managers may utilize ERPOs to avoid incidents and reduce risks, in addition to promoting the secure storage of firearms.

 10. Corporate Sustainability Regulations Are Evolving

Aligning enterprise risk management (ERM) with changing sustainability regulations is becoming increasingly important. A double materiality assessment (DMA) can help an organization identify and evaluate the impact and risks of environmental, social, and governance topics from multiple perspectives. Impact materiality can determine actual or potential consequences to people or the environment, while financial materiality can evaluate the risks and opportunities to an organization’s business operations. This assessment, in conjunction with robust ERM practices, can help companies rebound faster during challenging economic conditions.