Kroll reports that executives are seeking more protection following the death of UnitedHealthcare CEO Thompson.
- After the fatal shooting of UnitedHealthcare CEO Brian Thompson in New York, corporate executives are looking for more security protection, according to Kroll Enterprise Security Risk Management.
- In midtown Manhattan, a leading private payer of health insurance claims in the United States, Thompson, was killed on his way to a UnitedHealth Group investors meeting.
- The shooting scene contained bullet casings with the words "deny," "defend," and "depose," possibly referencing a book about insurance companies refusing to pay out claims.
After the murder of UnitedHealthcare's CEO in New York, high-level corporate officers are looking for more security measures, says a top risk management firm.
Kroll Enterprise Security Risk Management's managing director, Matthew Dumpert, stated that CEOs and other executive level and board members contacted them for 24/7 personal security and executive protection.
""A CEO is the lightning rod that attracts the ire, regardless of the product or services sold," he said in an interview."
The killing of UnitedHealthcare CEO Brian Thompson took place during a rise in threats against individuals in the healthcare sector.
"Dumpert stated that the healthcare workers in the hospital's critical care environment experience daily ire and animosity, which extends to the insurance industry to some extent. This is due to the presence of red flag indicators of potential violence."
In the United States, the largest payer of health insurance benefits is a division of Thompson's company.
On Wednesday morning, a gunman fatally shot a 50-year-old man named Thompson outside a midtown Manhattan hotel while he was walking to a UnitedHealth Group investors meeting without any security. Police believe the gunman targeted Thompson for an unknown reason.
Immediately following the murder, there were rumors that Thompson's company had a high rate of denying health care claims to its beneficiaries.
The gunman remained at large as of Thursday afternoon, with bullet casings found at the scene carrying the words "deny," "defend," and "depose," possibly referencing a 2010 book about insurance companies denying claims benefits.
BlackCloak CEO Chris Pearson stated that Thompson's killing is a rare occurrence in recent U.S. history.
Pearson stated in an interview with CNBC that the loss of life had a profound impact on family, company, and friends, leaving them feeling absolutely overwhelmed.
"I haven't witnessed anything like this before," he stated. "I believe we haven't seen anything to this extent in the U.S."
Pearson stated that Thompson's murder could impact security measures for executives and how protection firms assess their risks during public events, board meetings, conferences, and speaking engagements where their physical presence is expected or likely to be anticipated.
He stated that the new risk that needs to be assessed today is what I think.
Unlike some executives in the health-insurance sector, Thompson did not have a dedicated security detail.
In the past 36 hours, various industries have sought extra protection from Kroll.
Recent proxy statements reveal that twenty percent of S&P 500 companies offer security benefits to their chief executives.
According to a CNBC analysis of AlphaSense market intelligence data, the current rate is approximately seven percentage points higher than it was a decade ago.
According to UnitedHealth's recent proxy statements, no current or former executives are receiving regular company-funded security services.
If private jet services are provided for executives' security, most companies disclose it.
In health care, both Johnson & Johnson and UnitedHealth Group disclose such benefits in their proxy statements for their CEOs.
In 2023, vaccine makers disclosed that they had spent over $1 million on executive security for their CEOs.
The pharmacy company's CEO, Tim Wentworth, had home security services provided by a proxy two days before the shooting.
Walgreens requires Mr. Wentworth to accept personal security protection while serving as CEO to safeguard him and his family members from potential security threats.
Walgreens stated that the company believed the security costs were appropriate and necessary given the increased risk environment in the retail pharmacy industry.
In 2023, a proxy statement was disclosed that mandated then-CEO Karen Lynch to utilize the company's corporate aircraft for both business and personal travel, as part of an executive security program.
Ms. Lynch utilizes a corporate driver for travel as part of our executive security program, similar to our approach to aircraft, in order to minimize travel time, protect confidentiality, and enhance the CEO's personal security.
Lynch was replaced as CEO in October by David Joyner.
- Additional reporting by CNBC's Nick Wells
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