Brown & Brown, Inc. · NYSE:BRO
Brown & Brown — Fiduciary Liability Webinar (July 2023)
15 slides from Brown & Brown's conference presentation, Jul 12, 2023
Slide 1: Fiduciary Liability: Current Trends in Claims, Litigation and Placement
Fiduciary 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 Jane Hahn Brown & Brown, Moderator Brown & Brown, Panelist James Hynes Jeremy Blumenfeld Travelers, Panelist Morgan, Lewis & Bockius, LLP, Panelist BROWN & BROWN | 3
Slide 4: Claim Trends and Issues
01 Claim Trends and Issues
Slide 5: Fiduciary Liability Overview
Fiduciary Liability Overview ERISA: The Employee Retirement Income Security Act of 1974 (ERISA) is the U.S. statute which regulates privately sponsored pension and welfare benefits provided for employees and their beneficiaries. The federal law sets the minimum standards for most voluntarily establi
Slide 6: Fiduciary Liability Overview
Fiduciary Liability Overview What Is Considered An Employee Benefit Plan? What Does The Policy Pay For? • ERISA also has a broad definition of what is considered an employee benefit plan. It includes any plan, fund, or program established or maintained for the purpose of providing Defense Costs Dama
Slide 7: Claim Trends and Issues
Claim Trends and Issues Common Types of Claims • Mismanagement of Plan Assets » Maximize returns/mitigate losses » Excessive Fees o Most common type o Class actions • Benefits Claims » Defense costs coverage only • Non-Benefits Monetary Claims • Settlor Claims » Business decision regarding Plan • Fa
Slide 8: Claim Trends and Issues
Claim Trends and Issues • Common Coverage Issues » Who is alleged to have acted wrongfully, and in what capacity? » What is considered a Covered Plan? » Duty to Defend v. Indemnity » Selection of Counsel » Benefits Due Exclusion • Claim resolution issues » Settle v. Defend • Other issues BROWN & BRO
Slide 9: Litigation Environment
02, Litigation Environment
Slide 10: Litigation Environment
Litigation Environment • Increased volume of Claims » By Type of Claim » By Jurisdiction o Traditional difficult jurisdictions o Emerging challenging jurisdictions o Forum shopping » Aggressive plaintiffs’ bar » Size of Company • Impact on settlements and verdicts BROWN & BROWN | 10
Slide 11: Policy Placement Issues in the Marketplace
Policy Placement Issues in the 03 Marketplace
Slide 12: How Do Insurers Assess the Risk?
How Do Insurers Assess the Risk? HOW IS IT UNDERWRITTEN? Plan Type / Total Plan Diversity & Profitability Total Number Cost per Plan Assets of Investment Options of Plan Participants Participant Employee Stock Financial Condition of Prior Claims / Litigation Ownership Plan Multi-Employer Plans Spons
Slide 13: Placement Issues
Placement Issues • Insurer response to Claim Trends and Losses » Excessive Fee/Multi-Party SIR » Capacity Management » Impact on Premium • Actions to reduce UW scrutiny • Terms and Conditions negotiations » Exclusions » Sublimits • Challenges in building larger programs BROWN & BROWN | 13
Slide 14: Questions and Answers
Questions and O Answers (1)
Slide 15: 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
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