Brown & Brown, Inc. · NYSE:BRO
Brown & Brown — ICPL Webinar (July 2022)
14 slides from Brown & Brown's conference presentation, Jul 20, 2022
Slide 1: Insurance Company Professional Liability: Current Trends in Claims, Litigation and Placement
Insurance Company Professional Liability Current Trends in Claims, Litigation and Placement Presented By: Hays Companies, Inc., an owned Brown & Brown Executive Risk Team subsidiary of Brown & Brown, Inc.
Slide 2: Presentation Agenda
Presentation 1 Claim Trends and Issues Agenda 2 Litigation Environment 3 Policy Placement Issues in the Marketplace 4 Q&A BROWN & BROWN | 2
Slide 3: Panelists
Panelists Aaron Stone Stuart Turner Brown & Brown, Moderator Brown & Brown, Panelist Scott Stence Stacy Broman Brown & Brown, Panelist Meagher & Geer, Panelist BROWN & BROWN | 3
Slide 4: Claim Trends and Issues
Claim Trends and 01 Issues
Slide 5: Legal Requirements for Claims
Claim Trends and Issues LEGAL REQUIREMENTS FOR CLAIMS Common Law Statutory • Varies by State • Unfair Claims Practices Acts » Regulatory Limits on Claim-Handling » Varies by State but generally similar » Principles of Contract Interpretation » Prohibited acts are per se violations » Choice of Law »
Slide 6: Common Types of Claims
Claim Trends and Issues • Underwriting Errors COMMON TYPES OF CLAIMS » Misunderstandings • Bad Faith Claim Handling » Clerical Errors » Failure to Settle » Failure to Disclose » Wrongful Denial of Coverage » Missed Deadlines • Breach of Agency Relationships • Financial Advice » Life Insurance o Suit
Slide 7: Common Practices that Result in or Avoid Claims
Claim Trends and Issues Common Practices that result in Claims • Failure to settle • Wrongful denial of coverage • Beware of the bad faith setup- time limited demands Common Practices to avoid Claims • Maintain and document claim files • Reasonable, prompt, investigations • Adhere to contractual and
Slide 8: Coverage Issues, Social Inflation and Other Issues
Claim Trends and Issues • Coverage Issues » Notice » Defense » Covered Loss/Allocation • Social inflation » Rising litigation costs » Higher settlements and “nuclear” verdicts » Longer claim resolution timeline • Jurisdictional issues • Claim resolution issues • Other issues » COVID-19 » EPL BROWN &
Slide 9: Litigation Environment
02, Litigation Environment
Slide 10: Litigation Environment
Litigation Environment • Increased volume of Claims » By Type of Claim? o Auto » By Jurisdiction? o Traditional difficult jurisdictions o Emerging challenging jurisdictions » Aggressive plaintiffs’ bar • Impact on settlements and verdicts • Litigation funding BROWN & BROWN | 10
Slide 11: Policy Placement Issues in the Marketplace
Policy Placement Issues in the 03 Marketplace
Slide 12: Placement Issues
Placement Issues • Carrier response to Claim Trends and Losses » Impact on Premium • Actions to reduce UW scrutiny and premium increases • Terms and Conditions negotiations • Other policy language issues » Exclusions » Limitations • Challenges in building larger programs BROWN & BROWN | 12
Slide 13: Questions and Answers
Questions and O Answers (1)
Slide 14: Find your solution at BBrown.com
Find your solution at BBrown.com Any solicitation or invitation to discuss insurance sales or servicing is being provided at the request of Hays Companies, Inc, an owned subsidiary of Brown & Brown, Inc. Hays Companies, Inc. only provides insurance related solicitations or services to insureds or in