Executive Insights: A conversation with Gallagher Bassett's Mike Hessling

As the chief executive officer of North America for Gallagher Bassett, Michael Hessling oversees the company’s client relationship programs and the development of their carrier-related business initiatives. He joined the company in 2012, and has more than two decades of experience in the areas of finance, business and negotiating insurance disputes.

Understanding the importance of having a strong work-life balance, Hessling makes spending time with his wife and six children a priority. They enjoy sports, games, vacations and even watching Seinfeld reruns.

His other passion is music. “Though only a middling musician myself, I love listening to music and continue to discover new bands and songs that inspire me. I’m thrilled that live music is back and highly recommend the daily game Heardle for fellow music aficionados.”

PC360 asked Hessling to share some insights on topics ranging from managing today’s talent challenges to the importance of innovation and its role in the industry.

PC360: One of the major challenges for every company involves attracting, developing and retaining talent. How is Gallagher Bassett approaching these challenges?

MH: First, when looking to attract talent, there are really two questions important to candidates. The first is, “What is it like to work at your company?” For GB, this is a tremendous advantage because we have a culture based on treating each other with respect, having passion for what we do and conducting business the right way. This resonates with candidates and comes through when they talk to current team members.

The second question is, “What are my career opportunities?” and, again, this is an advantage for us. We have a strong track record of growth and expansion, which means passionate professionals have tremendous opportunities to advance and grow within our organization.

On the talent development front, we are constantly looking for ways to help our team members learn and grow. That starts with a rigorous new-hire training program but continues with technical and professional training on an ongoing basis. Of course, not all development happens via formal training, and this is where our managers really make a difference providing real-time coaching and support for our team to help them develop and advance on the job. I’m also very excited about our mentorship program that pairs developing leaders with seasoned executives across GB.

Finally, with respect to retaining talent, it’s all about making sure our team feels heard, supported and valued. We seek feedback from our team constantly via formal surveys and informal check-ins and challenge ourselves to ensure each team member is set up for success. We also love to celebrate successes, whether it’s compliments from a client on a job well done or as part of our amazing annual recognition programs.

PC360: In a large company like Gallagher Bassett, how do you promote and encourage a strong company culture, particularly in the midst of a global pandemic? MH:  We’ve been fortunate in that culture was central to our business and strategy long before the pandemic. It starts with “The Gallagher Way,” written back in 1984, which articulates our shared values as a company — it’s the foundation for how we work together in service of our clients and the broader insurance marketplace, and that foundation remains as strong as ever within Gallagher Bassett.

We have also benefited from being a pioneer of working from home within our industry years before the pandemic; in North America, nearly half of our team worked from home prior to COVID-19. We found this strategy provides real advantages in attracting and retaining team members who greatly value the ability to integrate and manage their work and home lives.

Of course, by moving nearly all team members to work from home during the pandemic, we have revisited how we connect, engage and keep our culture alive and well. We’ve become much better about using collaboration technology for meetings, and have been conscious to keep the culture alive and well through focused campaigns reminding our team about what it means to live “The Gallagher Way.” I’m really proud of the way our culture has thrived over the past several years and love hearing from new team members how different it feels to be part of the GB family.

PC360: How can risk managers build strategies and evaluate risk costs for workers’ compensation claims? Have the costs or types of claims changed significantly?

MH: First, the nature and exposure of workers’ compensation claims in 2020 and 2021 were materially different than prior years in terms of duration and cost. Being able to separate COVID-19 workers’ compensation exposures from more traditional workplace injuries is essential for understanding risk and development for these respective years.

Equally important is understanding the implications for workers’ compensation claims as we emerge from the height of the pandemic. With the reentry of staff and changes driven by The Great Resignation, employers are more susceptible to workplace injuries as staff may be less familiar with once commonly held safety protocols. Being vigilant about workplace safety — early and often — will be critical to keep frequency in check.

Additionally, work-from-home environments pose new risks as many organizations have less familiarity controlling for ergonomics than when those same team members worked in offices.

PC360:  We hear a lot about the importance of data and its role in the insurance ecosystem. How can companies leverage data to make better decisions when managing their risk and claims environments?

MH: We find that risk managers are often being challenged to do more with less within their companies, and the only way to do that successfully is by being more data-driven and strategic in how they manage risk. For example, loss control has become much more scientific in identifying the kinds of risk and locations that may benefit from targeted safety initiatives.

Similarly, managing claims requires risk managers to take a portfolio management approach —identifying those claims where the engagement of their scarce risk and claims resources can have the greatest impact on mitigation and resolution. We provide extensive analytics and benchmarking capabilities to help our clients on both of these fronts.

As a risk and claims management provider, we also harness the power of data to make better decisions on behalf of our clients. Robust decision support models help us validate reserving, evaluate when to deploy clinical resources thoughtfully and even anticipate potential litigation as claims develop. By leveraging our experience and scale, we’ve developed integrated decision support tools for our claims professionals — supplementing their own extensive professional expertise when making critical decisions on claims.

PC360: Why is investing in innovation so critical for carriers and TPAs? What are the long-term benefits of these investments?

MH:  For GB, it is our obligation and responsibility to invest in innovation to help our clients achieve superior outcomes. Innovations allow us to make step changes in the outcomes we deliver for our clients and their risk management programs.

Those outcomes show up for our clients and GB in multiple ways. The most obvious are claims outcomes — where we can improve resolution or restoration, reduce duration and minimize cost for our clients through innovations like decision support tools and more rapid engagement of critical resources like nurses on appropriate claims. We also look to make it easier for our clients and their claimants to work with us. Finally, clients look for us to innovate to become more efficient — not only to control the cost of our services but also to create more space and time for our professionals to engage meaningfully with our clients and claimants.

PC360: What do you see as the top three issues the insurance industry should be focusing on now?

MH:  First, is the importance of attracting and retaining talent in our industry. I fundamentally believe it is the obligation of everyone in our industry to be ambassadors for the insurance industry and seek to welcome, attract and develop talent to help propel us forward.

Second, is the importance of impactful innovation. Our industry is hungry for big ideas — to challenge the status quo and to do things differently. We need to constantly challenge ourselves on whether the latest “innovation” is making a material impact on outcomes for the industry.

And third, is leadership — the glue between the first two issues. Our future will depend on leaders who inspire a talent pool more diverse than ever before (both in terms of demographics and capabilities), who can anticipate and respond to emerging risks and opportunities, and who lead through heightened expectations of leaders in areas beyond core business performance.

PC360: What advice do you have for someone just beginning their career in the industry?

MH: Surround yourself with people you admire, respect and trust, and you will find incredible career success. I have been incredibly fortunate to work with leaders who inspire me, challenge me and allow me to be myself, and it has made all the difference. Said simply, who you work with is the most important determinant of current and future success.

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