10 Questions for MSIG USA’s Head of Casualty, Tracey Estes

In late September, Tracey Estes, Head of Casualty for MSIG USA, met with Dan Reynolds, the editor-in-chief of Risk & Insurance. What follows is a transcript of that discussion, edited for length and clarity.

Risk & Insurance: It’s very nice to meet you, Tracey. What attracted you to MSIG USA?

Tracey Estes: Before receiving the initial call about this role, I knew very little about MSIG USA. That prompted me to dive deep into the company’s history, and a few things immediately stood out to me.

First, their 300-year legacy of delivering complex insurance solutions to sophisticated global clients was incredibly compelling. The foundation of Japanese culture is centered on building strong relationships. This viewpoint resonated with me on a personal level. I was drawn to the idea of combining a rich heritage and relationship-driven philosophy with the complexity of global insurance solutions.

I was also intrigued by the opportunity to help grow MSIG USA’s presence in the U.S., where it has not yet established a strong footprint. It felt like an incredible chance to be part of building something essential and exciting in the marketplace, from the ground up.

R&I: You were brought in to head up the casualty business. What casualty products will you be offering?

TE: Let me start by giving you a sense of our company’s focus. For the past 50 years, our presence in the U.S. has primarily supported Japanese interests abroad—Japanese-domiciled parent companies with assets and exposures in the U.S. However, we are now significantly expanding our efforts to serve U.S.-based businesses.

We currently offer a comprehensive range of casualty products, including workers’ compensation, general liability, auto liability, umbrella, and excess casualty. This full suite of casualty solutions supports what we refer to as reverse flow business. Our entry point into the broader U.S. market will be through excess casualty.

We are taking a dual-channel distribution approach, providing products tailored for both retail and wholesale markets. It’s important to note that, although we will serve both channels, our goal is to honor and respect the needs of both verticals, delivering differentiated solutions that align with the unique demands of each market segment.

R&I: How do you think your approach will differentiate MSIG USA?

TE: One of the key ways we’ll differentiate ourselves is by adopting an industry vertical approach. This means truly understanding and acting as stewards of capital within specific industry segments. Our offerings may vary between the retail and wholesale channels. For example, we might develop specialized products and services for certain industries that are exclusively tailored to wholesalers, while our retail offerings will likely have a broader appetite across multiple industry classes. This approach ensures that we meet the unique needs of each channel with precision and purpose.

R&I: What casualty risk trends are you seeing?

TE: One major trend we’re seeing is the continued impact of legal system abuse, which is driving nuclear verdicts across various sectors. However, within the casualty space, there are several other noteworthy developments that align with what you may have heard from other industry thought leaders.

Bodily injury claims are a significant concern, particularly in auto and general liability exposures, such as slips and falls. The issue is more pronounced in auto because it’s an unaggregated line of business, meaning there’s no cap to limit a carrier’s exposure to ongoing claim payments.

Although we’re not launching products specifically for the primary segment, primary casualty remains a key part of our portfolio. As the workforce continues to evolve, shifts in how and where people work create new challenges, particularly for workers’ compensation. For example, determining liability becomes more complex when an employee is injured working from home compared to an office setting.

The rise of the gig economy also introduces new risks, especially through the growing influence of social media. Copyright and trademark infringement have become increasingly common due to the improper use of licensed music on these platforms. Additionally, many retailers now rely heavily on social media for advertising, which has heightened their exposure to personal and advertising injury lawsuits.

While PFAS, often called forever chemicals, may seem like old news, we expect chemical litigation to increase across the casualty spectrum. We’re actively monitoring these and other emerging trends as they develop, ensuring we stay ahead of potential risks.

R&I: From your perspective, how do you view risk mitigation in auto, and what measures do you think can work?

TE: The primary focus of risk mitigation in auto lies with the drivers. While we often focus on the physical vehicle, the real cornerstone of safety is the person behind the wheel. Advances in technology, such as built-in cameras, offer promising solutions, but they are not foolproof. These tools are only as valuable as the monitoring behind them and the timely feedback managers provide to drivers. So the best way to influence outcomes is by actively managing the drivers themselves. This includes conducting regular motor vehicle record checks, tracking driver performance, and ensuring organizations have strong driver policies, employment practices, and clear consequences in place.

R&I: I think we did recently see a statistic that most of the time when video is employed, it actually exonerates the driver.

TE: This is a topic ripe for debate. Companies are understandably concerned about litigation and the potential for data to be used against drivers. While the technology shows real promise, it is still in its early stages. We have yet to fully grasp its usage and long-term implications. If we revisit this discussion in 10 years, our perspective will likely be very different from what it is today.

R&I: When you think about the kind of people you want on your team, what’s going to work for you?

TE: I’m glad you asked because culture will be our number one differentiator, and that starts at the top. The kind of people we want on our team are those who collaborate and work toward the common good. They must be technically strong and disciplined, especially from an underwriting perspective.

This isn’t an organization focused solely on chasing top-line growth. We’re looking for underwriters who can drive profitability by evaluating and underwriting high-quality risks. That requires a particular mindset, especially in today’s competitive environment, where many of our peers are pursuing aggressive growth, often at the expense of bottom-line profitability.

We’ll be taking the opposite approach, driven by bottom-line results. This demands people with a sense of urgency, integrity, and authenticity who can actively listen to clients and develop creative, thoughtful solutions. It also requires individuals who can deploy capacity strategically and assess risk with care. Ego won’t have a place here—it will be an all-hands-on-deck culture.

Another passion of mine is attracting best-in-class talent to our industry. The people on our team won’t just do the work. They’ll also be mentors, trainers, and teachers. This is how we build our legacy. Our legacy isn’t just about the portfolio we create or the business we write; it’s about the people we develop along the way, both within and beyond our organization.

R&I: Is there anything top of mind for you, that you thought about but didn’t get a chance to express?

TE: It’s important to emphasize what sets MSIG USA apart. First, our rich history as a leading global insurer means we’ve developed solutions for some of the most complex risks worldwide, not just through a regional lens, but with a global perspective. We take a broad view of risk, identifying patterns and trends: Where is the risk heading? How will it evolve? And how can we stay ahead of it by innovating solutions to meet our clients’ needs? This approach is fundamentally different from a purely U.S.-centric view and is always top of mind for us.

Second, our claims organization truly differentiates us. While much of the conversation in insurance revolves around underwriting, the heart of this business lies in claims. A friend once told me, “Underwriters sell insurance one day a week, but claims are managed 365 days a year.” That sentiment rings true and is one we take seriously at MSIG USA.

Our segment is really catered towards the national account segment. More than 50% of that business is on a primary basis and is bifurcated in the industry, with claims being handled through a third party administrator (TPA). This results in significant turnover across the industry. But at MSIG USA, we have more than 150 claims professionals, an investment that underscores our commitment. This is a game-changer because the real driver of the total cost of risk isn’t the premium—it’s the claims.

This is especially critical from a casualty perspective because casualty is about people from employees to customer to drivers. We are responsible for their well-being, and that human element is central to everything we do.

At MSIG USA, we understand that you can’t separate claims from insurance. It’s like seeing an ENT for a gastro issue. When you disconnect the two, you lose the critical connections that lead to meaningful outcomes. Our focus on relationships, service, and the infrastructure we’ve built on the claims side allows us to deliver not just a better experience, but better results for our clients. I’m excited to see our claims teams rise to the challenge and outperform the market on outcomes.

R&I: What’s your take on the role that artificial intelligence can play in helping claims adjusters do their job?

TE: There is no doubt that AI is going to revolutionize our industry. It’s already transforming the world. I personally use AI every day for learning and development, but when it comes to claims involving human injury, we need people at the forefront to navigate those situations.

There are limits to what AI can accomplish. It will certainly reduce the administrative burden of claims handling by automating routine tasks. However, in cases involving nurse case managers, complex opioid treatment plans, or catastrophic workplace injuries, the human element remains essential. AI can’t replace the empathy, expertise, and judgment required in these situations.

What AI can do is enhance efficiency by extracting valuable insights from unstructured data and populating claim files for adjusters. It can also identify patterns and provide early indicators, helping adjusters prioritize their workload. For example, if I’m managing a portfolio of 150 active claims, AI could help me focus on the most urgent cases first, improving triage and response time.

That said, the heart of claims management will always involve human connection. In a workers’ compensation case, for instance, the insured needs to feel assured that we are committed to helping them recover and return to work. AI will be a powerful tool, but the process of guiding someone through a difficult situation will always require the care and empathy only a human can provide.

R&I: MSIG has a long history and an established legacy. There is a bit of a cultural difference between Japan and the US. How does the DNA of the company translate that into the American mindset?

TE: I’ve been truly fascinated by Japanese culture and how deeply rooted it is in the foundation of this business. One unique aspect is that Japanese insurance executives rotate roles every five years. Just think about the breadth of experience our Japanese colleagues gain. They’ve worked across property, casualty, systems, the office of the Chief Underwriting Officer, and product development.

As the industry shifts, there’s a growing need for leaders with both deep expertise and broader business insight. While technology makes it easier to master specific areas, the real challenge lies in developing versatility and the ability to connect different parts of the business. The Japanese have mastered this by strategically rotating leaders through various roles, equipping them with a well-rounded understanding of how everything interrelates.

This allows them to synthesize their knowledge more quickly and lead with agility. Traditionally, U.S. professionals tend to specialize in one niche, whether it’s primary casualty, excess casualty, or large national accounts, and remain in that focus throughout their careers. This can make it difficult for them to shift perspectives or manage other parts of the business effectively.

Historically, we’ve turned to outside consultants to fill these gaps in leadership. However, the Japanese approach builds this broad competence from within, preparing executives to naturally take on greater responsibilities. We’re excited to adopt this mindset in the U.S., fostering more adaptable and equipped leadership to manage complex challenges. &