evolving risks, exposures & coverages international d&o evolving risks, exposures &...
TRANSCRIPT
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INTERNATIONAL D&O
EVOLVING RISKS, EXPOSURES & COVERAGES
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INTERNATIONAL D&O: EVOLVING RISKS, EXPOSURES, AND
COVERAGES
MODERATOR: • David K. Bradford, President, Research & Editorial Group, Advisen Ltd.
PANELISTS: • Perry S. Granof, Esq., Managing Director, Granof International Group LLC
• Ann Longmore, MBA, MA, JD, Executive Vice President, D&O, Fiduciary, and EPL Product Leader, Willis Executive Risks Practice, North America
• Christopher G. Magee, Managing Director, Hartford Financial Products International Ltd.
• Edward Smerdon, Esq., Partner, Sedgwick Detert Moran & Arnold, LLP
• David B. Williams, Vice President, Chubb Specialty Insurance
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Agenda
1. Current International D&O Market and Landscape
2. Claims Drivers and Implications of Non-U.S. D&O Litigation
3. Global Regulations and Criminal Redress: Jurisdictions to Watch
4. Non-U.S. Civil Litigation: Landmark Cases & Key Jurisdictions
5. Global Policy Structure: Client Concerns
6. Around-The-Corner Issues & Conclusions
7. Questions & Answers
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International D&O Market
• Relative Size of International D&O Market
• Rapid Growth
• Drivers of Growth?
• Is U.S. Most ‘Mature’ D&O Market?
• D&O Claims Driven by Local Conditions?
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Global D&O Litigation: Claims Drivers & Implications
• Corporate Governance standards
• Access to legal remedies & collective action schemes
• Litigation funding
• Effects of the Morrison v NAB ruling?
• Insured vs. Insured exclusion outside the U.S.?
• Regulatory actions
• Insolvency
• Small/Medium Enterprise (SME)
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Global Regulation & Criminal Redress:
Jurisdictions To Watch• UK Bribery Act
• U.S. Foreign Corrupt Practices Act (FCPA)
• UK Corporate Manslaughter Act
• Solvency II
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Non-US Civil Litigation:Landmark Cases & Key
Jurisdictions • Post-Morrison v NAB claims environment
• Have more favorable shareholder jurisdictions emerged?
• Latest cases redefining the litigation landscape
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Global Policy Structure:Client Concerns
9
Parent Company policy structure
Coverage grants Terms and conditions including deductible
Degree of confidence that global policy will respond
Difference in Conditions & Limits Language
Local Policy compliance concerns
Are policies required by law?
Scope of local policy coverage
Local language contracts aligned with local legal structure
Unique features need to be reviewed
Coordinated with the Parent Company policy
What is the local claims environment?
Keep in mind that nature and size of the local exposure
Aggregation may not be allowed and limits erosion may be an issue
Central management can be a challenge
Quotation & binding
Specific country collection and payment requirements
Exchange rate issues
Decentralized purchase approach?
Premium, Transfer Payment & Loss
Allocation methodology is a requirement
Freedom of Service Process
License only approach
Varied perspectives
Tax Authorities are active
ProductAvailability
ProductAvailability
Selecting Limits
Selecting Limits TaxTaxDIC/DILDIC/DIL BillingBilling
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Around-The-Corner Issues & Conclusions
• D&O insured buying patterns? Higher limits? A-DIC? ODL?
• Multinational buyers: Global program or local policies?
• Emerging exposures that concern underwriters?
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Questions & Answers
Questions&
Answers
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Many Thanks To …
• David Bradford
• Perry Granof
• Ann Longmore
• Christopher Magee
• Edward Smerdon
• David Williams• Randy Hein (panel liaison for PLUS)