1. Fiduciary Liability Insurance Market Update April 28, 2004
Carrie Brodzinski, St. Paul Travelers
John Coonan, Chubb & Son
Jay Desjardins, Aon
Laurie Banez Lopes, Axis Financial Insurance Solutions
Rhonda Prussack, AIG

2. Fiduciary Liability Insurance Market Trends: History
Historically low frequency/high severity
Primarily individual benefit claims
Profitable
Low deductibles, high limits, minimal underwriting
Abundant capacity

3. Fiduciary Liability Insurance Market Trends: Claims
New types and sources of claims
Frequency vs. severity
Impact on underwriting

4. Fiduciary Liability Insurance Market Trends: Claims
Securities Claims: increased frequency of securities claims dressed up to look like fiduciary claims
Stock Drops
Tagalong Claims

5. Fiduciary Liability Insurance Market Trends: Claims
Inconsistent case law makes it difficult to predict outcome of litigation
70 to 80% of corporations with 5,000 or more employees offer company stock as employee investment option

6. Fiduciary Liability Insurance Market Trends: Claims
Cash Balance Plans
Calculation of lump sum benefits
Section 510 DiscriminationMerger & Acquisition Activity
Administrative Claims
Benefits disputes

7. Fiduciary Liability Insurance Market Trends: Underwriting
Underwriters’ Responses to Claim Trends
Premiums and retentions increasing
Changes in policy terms
Underwriting Questions
Limits Management

8. Fiduciary Liability Insurance Market Trends: Pension Reform Legislation
What is it
Potential Impact on Fiduciary Liability Insurance

9. Fiduciary Liability Insurance Market Trends: Risk Management
What makes an account a “Good Risk”
Preparing for the underwriting process
What can be done to mitigate exposure?

10. Fiduciary Liability Insurance Market Update
Questions
&
Answers