State of the Insurance Market: Focus on Professional Liability 1
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State of the Insurance Market: Focus on Professional Liability http://corner.advisen.com White Paper- Coming Soon! Copy of these slides Recording of today s webinar 4
Today s Moderator David Bradford- President, Research & Editorial Group, Advisen Ltd.
Today s Panelists Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Today s Panelists Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lori Bailey is the Global Chief Underwriting Officer of Professional Liability for Zurich General Insurance. In her current role, Ms. Bailey is responsible for portfolio management, underwriting governance and product development as well as management of growth initiatives for all professional liability lines written at Zurich Financial Services. In this capacity, Ms. Bailey oversees underwriting operations for all professional liability segments, including Security & Privacy, Technology, Miscellaneous, Architects & Engineers (including Construction), Accountants and Lawyers as well as related lines of business. Ms. Bailey has held this position since December 2011. Previously, Ms. Bailey was a Senior Vice President and Head of Professional Liability for Zurich North America where she led the Errors & Omissions Product Underwriting unit. Ms. Bailey also held other leadership positions within the Zurich organization. Prior to her tenure at Zurich, Ms. Bailey was a Vice President in Chartis' Professional Liability division and was responsible for all professional liability product management operations, including Employed Lawyers coverage, Miscellaneous Professional Liability, Technology E&O and Security & Privacy risks.
Today s Panelists Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Lou Spadafora is a founding partner of Winget, Spadafora & Schwartzberg, LLP. He manages the firm s litigation group and divides his time between our offices in New York, Connecticut and New Jersey. His practice focuses on the defense of professionals and fiduciaries, with a particular emphasis on the representation of the financial services industry, including the representation of broker-dealers, registered representatives, and investment advisors. He also lectures extensively on issues affecting the financial services industry and professionals, including fiduciaries, attorneys, accountants and design professionals, and has also been quoted in the New York Times, the Wall Street Journal and Business Insurance. Mr. Spadafora is a member of the American Bar Association, the New York State Bar Association, the Connecticut Bar Association, the New Jersey State Bar Association, the Financial Services Institute (FSI), the Securities Industry and Financial Markets Association (SIFMA), the Defense Research Institute (DRI), and the Professional Liability Underwriting Society (PLUS) where he serves on the eastern regional steering committee.
Today s Panelists Sandy Codding, Managing Director, Marsh As leader of Marsh s U.S. Commercial E&O Practice, Sandy Codding is responsible for setting practice strategy, driving and delivering growth, and product expertise. His responsibilities also include technical leadership, E&O knowledge management and professional development and training. The industries and products included within the E&O Practice are Technology, Media, Telecommunications, Miscellaneous Professional, Intellectual Property and Network Security, Information and Privacy Risk. Sandy led the development effort for Marsh s proprietary E&O Risk Assessment offering and serves as the project leader on many of these engagements. Sandy is located in the Boston office. Sandy is a frequent speaker at educational conferences. Prior to joining Marsh in April of 2005, Sandy established and managed the Commercial Errors & Omissions Unit within the Professional Liability Division of Quanta US Holdings.
State of the Commercial Lines P&C Insurance Market Rates rising in many segments, but Industry remains very well capitalized Other factors: Claims trends/underwriting losses Recession and economic recovery Low interest rate environment Impact of catastrophes on capacity 10
The Market Cycle Advisen ADVx Composite Index 160 150 140 130 120 110 100 3/1/2001 9/1/2001 3/1/2002 9/1/2002 3/1/2003 9/1/2003 3/1/2004 9/1/2004 3/1/2005 9/1/2005 3/1/2006 9/1/2006 3/1/2007 9/1/2007 3/1/2008 9/1/2008 3/1/2009 9/1/2009 3/1/2010 9/1/2010 3/1/2011 9/1/2011 3/1/2012 9/1/2012 11
Forces at Work on the Market Capacity (surplus) near record high Sandy not likely to have impact Underwriting losses in some lines Claim trends + rate erosion Recession and economic recovery Claims impact Varies by coverage Very low interest rates Recovery = increasing demand 12
Advisen Forecast Fiscal cliff a wildcard Assuming no mega-catastrophes in 2013 Upward pressure on rates will continue Status quo on coverage No significant market dislocations 13
How are January 1 renewals shaping up? Any surprises? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Are any segments of the market firming at a quicker pace than others? Are any still highly competitive? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
More companies of all sizes are now doing business abroad. What are the professional liability implications from both an exposure and a coverage perspective? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
What has been the impact of the credit crisis and recession on the various types of professional liability claims? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
What regulators or government agencies are targeting professionals? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Are there any emerging claims issues that we should be watching in 2013? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
What is driving interest in privacy and data security coverage? Will the momentum continue in 2013? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Are various types of professional liability policies potentially exposed to privacy and data security-related losses? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
What are the implications of the election for the professional liability market? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Are there any implications for the professional liability market of the roll out of Dodd Frank? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Assuming the economy continues to improve, what is the likely impact on professional liability exposures? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Any other advice for insurance buyers and they plan for 2013? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Any other advice for insurance buyers and they plan for 2013? Dave Bradford- Advisen Ltd. Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
Many Thanks to our Sponsor!
Thank You to our Panelists Lori Bailey, Global Chief Underwriting Officer, Professional Liability, Zurich General Insurance Lou Spadafora, Founding Partner, Winget, Spadafora & Schwartzberg, LLP Sandy Codding, Managing Director, Marsh
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