The RISQ RECAP:

July 24th – July 28th, 2023

A First Look at How U.S. Insurers Are Adopting Global Climate Reporting Guidelines

“U.S. insurers are adopting numerous strategies to deal with risks from climate change, according to a review out today that gives the first look at how or if insurance companies are adopting the widely used Task Force for Financial Disclosure guidelines. The review of Climate Risk Disclosure Survey responses, submitted to state regulators each year by insurers operating in 27 member states and jurisdictions, was conducted by climate leadership group Ceres and the California Department of Insurance.”  Full Article

– Insurance Journal

Berkley on Industry’s Financial Results: ‘Cat Losses Count’

“The fact is, catastrophe losses are a part of an insurers’ financial results and not a line item to be dismissed, said W. Robert Berkley Jr, president and chief executive of W.R. Berkley Corp during a recent conference call on second quarter earnings. Berkley opened his comments last week by saying it looked as though the industry was poised for “another ‘but-for’ quarter” – referring to insurers’ habit of spinning results “but for” catastrophe losses. “It would seem as though [catastrophe] losses don’t make a difference and, bizarrely, from our perspective, people seem to very quick to back out cat losses as though it’s not real money,” Berkley said. “Ironically, they do not seem to back out the premium associated with the exposure that just had the losses.”  Full Article

– Insurance Journal

NLRB Issues Advice Memo Designating Workplace Discussions of Racism as Protected Activity

“The National Labor Relations Board (NLRB) recently issued an advice memo confirming its earlier position that workplace discussions about racism are protected concerted activity under the National Labor Relations Act (NLRA). As a result, employers cannot fire, discipline, or take any adverse employment action against employees who publicly raise concerns about racism in the workplace.’”  Full Article

– Hall Benefits Law

More Than “De Minimis” — The Supreme Court Clarifies Title VII Undue Hardship Standard

“Title VII makes it illegal for covered employers to discriminate against employees and applicants based on certain protected characteristics, including sincerely held religious beliefs. Title VII also creates an affirmative obligation to accommodate the religious practices of employees and applicants unless doing so would impose an ‘undue hardship’ on the conduct of the employer’s business.”  Full Article

– Vinson & Elkins LLP

Revolutionary Change but No Free Lunch: What to Know About Algorithmic Discrimination and AI

“The capacity and deployment of artificial intelligence (“AI”) is dizzying. As businesses vet and/or actively integrate AI into their business processes, it is critical to understand not only AI’s potential but the potential risks. This includes inadvertently contributing to systemic discrimination issues and being subject to claims of violation of existing legal protections.”  Full Article

– Brownstein Hyatt Farber Schreck, LLP

Spike in Religious Discrimination Charges Stemming from COVID-19 Vaccine Mandates Fuels Increase in EEOC Charges

“In FY 2022, the EEOC saw the number of charges leap by more than 10,000 over the prior year. This uptick appears to be almost entirely attributable to the COVID-19 pandemic: a striking rise of over 600% in religious discrimination claims, with many filed by applicants and employees seeking religious exemptions to companies’ COVID- 19 vaccine mandates.”  Full Article

– Seyfarth Shaw LLP

OSHA: Targeting Warehouses, Distribution and Retail

“Effective July 13, 2023, OSHA has launched a National Emphasis Program (NEP) targeting inspections on workplace hazards in warehouses, processing facilities, distribution centers, and high-risk retail establishments.”  Full Article

– Michael Best & Friedrich LLP

Employers Seek to Delay Start of Mandatory I-9 Re-inspections

“Employers are reportedly urging the Biden Administration to delay the current August 30 deadline for in person re-inspections of I-9 documents that were submitted virtually during the COVID-19 pandemic. The employers argue that the delay is justified because final regulations are expected in August that might make virtual verification and other alternative options permanent, according to a recent article in Bloomberg Law (paid subscription required to access).”  Full Article

– Constangy Brooks Smith & Prophete, LLP