tort reform in reverse?. singin’ the pl blues moderator: sean fitzpatrick, esq., senior vice...
TRANSCRIPT
Tort Reform in Tort Reform in Reverse?Reverse?
Singin’ The PL BluesSingin’ The PL Blues
MODERATOR:
• Sean Fitzpatrick, Esq., Senior Vice President, Middle Market & Specialty Financial, The Hartford
PANELISTS:
• Timothy Braun, MBA, Executive Vice President, AXIS
• Louis H. Castoria, Esq., Partner, Wilson Elser Moskowitz Edelman & Dicker LLP
• Jason Hawkins, Managing Director, Aon
• Kalju Nekvasil, Esq., Partner, Goodman & Nekvasil, P.A.
AgendaAgenda
• Tort Reform in Reverse: Has the tide turned?
• Developments in Securities Liability
• Healthcare Reform – Implications for the Professional Liability Industry
• Financial Services and Professional E&O – How will Underwriters and Brokers address a changing liability environment?
Developments in Securities Liability
Scandals, Prosecutions, and InvestigationsScandals, Prosecutions, and Investigations
• Madoff• Stanford• And a Cast of Thousands
Regulation of Hedge Funds? Insurance?Regulation of Hedge Funds? Insurance?
Changes in the FINRA Arbitration SystemChanges in the FINRA Arbitration System
• Fewer “Industry” Panelists• Fewer Motions to Dismiss• No Arbitrations of Statutory Rights
Section 1031 ExchangesSection 1031 Exchanges
• $3.7 Billion in TIC offerings in 2006• What happened at DBSI?• Why real estate turned out to be risky
Reg. D – Private OfferingsReg. D – Private Offerings
• 26,485 private offerings filed in 2008• What happened at Medical Central?• What happened at Provident Royalties• Who is minding this store?
Looking Ahead -- TrendsLooking Ahead -- Trends
Healthcare Reform – Implications for the
Professional Liability Industry
Health Care Reform = Tort Reform?Health Care Reform = Tort Reform?
Managed Care, ERISA, and Bad FaithManaged Care, ERISA, and Bad Faith
Medical Device Safety ActMedical Device Safety Act
Arbitration Fairness ActArbitration Fairness Act
Financial Services and Professional E&O – How will Underwriters and Brokers address a
changing liability environment?
Effect on FI UnderwritingEffect on FI Underwriting
Sector Analysis
• Underwrite to individual sectors to determine which are more vulnerable with systemic exposure always a concern.
• Understand that the exposure is fluid and changes occur from both internal and external forces.
Effect on FI UnderwritingEffect on FI Underwriting
• Management Analysis
• Financial Analysis
• Operational Risk Management Analysis
• Enterprise Risk Management
Effect on FI UnderwritingEffect on FI Underwriting
Conclusion: Comprehensive Review
• Utilization of traditional and non-traditional underwriting resources
• Differentiating between well-managed and poorly-managed risks
• Balance between proper rate and coveragevs. premium
• A Brokers Perspective Challenges faced by the broker What it means for the client Education - broker and client focused
• Potential Impact on Clients Higher premiums and retentions Limited coverage available Managing insurance budgets vs. insurance spend Education
Industry Challenges Industry Challenges
Industry Challenges Industry Challenges
• Carrier / Industry Challenges If current trend continues can/will carriers continue to
write certain lines of business Increased defense costs Increased claim frequency and severity Program limits and structures “In the News”/Headline Risks – Madoff, Stanford,
Lehman, AIG etc…. Economy
QuestionsQuestions&&
AnswersAnswers
Many thanks to …Many thanks to …
• Sean Fitzpatrick
• Tim Braun
• Louis Castoria
• Jason Hawkins
• Kalju Nekvasil