WEEKLY COVID-19 UPDATE:D&O MARKET UPDATE

THE WELLBEING OF YOUR EMPLOYEES

A FEW THINGS TO NOTE

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This webinar is being recorded, the recording and slides will be made available to all registrants this evening via email

If you have a question, please enter it in the ‘Question’ field in the GoToWebinar interface

If we do not have time to answer all questions, written responses will be published later this week

AGENDA

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Jill DiGrappaWellness Advisor

Brian BovassoManaging Director, Executive

Risk Solutions

PANELISTS

D&O MARKET UPDATE

WELLBEING FOR YOUR EMPLOYEES

Justin JacobsVice President of

Marketing

D&O MARKET UPDATE

D&O MARKETPLACE

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D&O Litigation by Year

Federal Securities Class Action Litigation remains near an all-time high

• At this rate, approximately 1 in 10 public companies are being sued for securities fraud

2020 litigation started off slowly but increased substantially in March and April

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*

Federal Securities Class Action Suits

2010-2015 Average (173)

2017-2019 Average (407)

+135%

Sources: Stanford Law School Securities Class Action Clearinghouse *2020 full year estimate based on actual filings as of 4.15.20 (126)

D&O MARKETPLACE

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D&O Marketplace Response

High levels of D&O litigation causing many insurers to scale back market share

• In 2019, all but two D&O insurers either maintained or reduced their market share

This continued into early 2020, with many insurers taking a “wait and see” approach

Top 10 D&O Insurers2019 Market

Share (%)Change from 2018

Market Position(vs. 2018)

1. XL 15% ↑ +2

2. AIG 12% ↓ -1

3. Chubb 11% ↓ -1

4. HCC 7% ↓ Unchanged

5. Travelers 5% → -1

6. Great American 4% → +1

7. CNA 4% ↓ -2

8. Berkshire Hathaway

4% ↑ +1

9. Fairfax 3% → +3

10.Sompo 3% → Unchanged

Sources: A.M. Best data and research; Fitch Ratings; 2019 market share based on mid-year results

CORONAVIRUS IN THE U.S.

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COVID-19 LITIGATION

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Norwegian Cruise Line Holdings Ltd.

Inovio Pharmaceuticals, Inc.

Zoom Video Communications, Inc.

Walmart Inc.

Others?

Indirect Impact?

IMPACT ON D&OMARKETPLACE

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Continued Hardening?

So Far, Minimal Change

Scope of Coverage

Bodily Injury Exclusion

Public Filings

PREPARING FOR RENEWAL

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Start Early

Have a Plan

Choose Insurers Carefully

Experience Matters

WELLBEING

MENTAL WELLBEING

Source Data:23rd Annual Willis Towers Watson Best Practices in Health Care Employer Survey 2018 IFEBP Mental Health & Substance Abuse Benefits Survey

60%of organizations say their workers are facing more mental health and substance abuse issues compared with 2 years ago

84% of organization rely upon an EAP to provide support

10%or fewer

of their employees & families used the EAP

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On average, 12.2% of an organizations total healthcare costs are attributed to mental health and substance

abuse claims

On average, 9.5% of an organizations

disability’s claimswere due to mental

health and substance abuse issues

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Source Data:23rd Annual Willis Towers Watson Best Practices in Health Care Employer Survey 2018 IFEBP Mental Health & Substance Abuse Benefits Survey

MENTAL WELLBEING

Top mental health and substance abuse issues covered by insurance

• Depression

• Alcohol addiction

• Anxiety disorders

• Prescription drug addiction

• Nonprescription drug addiction

• Bipolar disorder

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Source Data:23rd Annual Willis Towers Watson Best Practices in Health Care Employer Survey 2018 IFEBP Mental Health & Substance Abuse Benefits Survey

MENTAL WELLBEING

56% Prioritize health technology solutions over next 3 years

54% Offer coverage for

tele-behavioral health services

10% Planned to for

2019

61% Will implement a companywide

behavioral health strategy/action plan

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Source Data:23rd Annual Willis Towers Watson Best Practices in Health Care Employer Survey 2018 IFEBP Mental Health & Substance Abuse Benefits Survey

MENTAL WELLBEING

MENTAL WELLBEING

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25%

24%

23%

62%

61%

53%

0% 10% 20% 30% 40% 50% 60% 70%

Redesign our current employee assistanceprogram

Have a companywide behavioral healthstrategy/action plan

Measure the stress of the workforce and theleading causes

Emotional Well-Being

2018 In 3 Years

Source Data:23rd Annual Willis Towers Watson Best Practices in Health Care Employer Survey 2018 IFEBP Mental Health & Substance Abuse Benefits Survey

BENCHMARKING

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Stress management Resiliency Mindfulness Tele-therapy Texting/Online Coachingw/Mental Health Expert

Programs to Support Behavioral Health

Government 1,000 - 4,999 EEs West

KEY INSIGHTS:• Most companies have programs in

place to support stress management (i.e. EAP)

• Government typically trends with or sets the bar in prevalence of programs

Workplacementalhealth.org: “Over a dozen critical reviews and meta-analyses have been conducted in the last 25 years to examine the cost-benefit question…provides substantial evident that providing mental health treatment offsets or reduces the subsequent use of medical care services and their associated health care and disability costs.”

“Research also documents even greater savings from providing appropriate treatment of mental disorders and addictions can come in the areas of indirect costs: EE productivity, absenteeism, speed and quality of return to work after disability and reduced turnover.”

Source Data:2017 Mercer National Survey of Employer-Sponsored Health Plans

BENCHMARKING

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0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

EAP Stress ManagementProgram

Mindfullness/MeditationTools/Resources

Gratitude/AppreciationInitiatives

Wellness Program withMH/SA Component

Healthy Workplace Initiative Organization InformationBoard

PTSD Awareness Programs None of the Above

Prevention Programs to Support Behavioral Health

Corporate Employer Public Employer Overall

KEY INSIGHTS:• EAP remains the most prevalent employer

offering, not surprising as it is affordable and requires relatively little management

• Public employers are ahead of corporate peers, though not by much

• No solution other than EAP sees more than 50% of all employers

Source: IFEBP Mental Health and Substance Abuse Benefits – 2018 Survey

WARNING SIGNS – ALL EMPLOYEES

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WHAT TO LOOK FOR• Excessive worrying or fear

• Avoiding friends/coworkers and social activities

• Seeming tired/low energy

• Seeming excessively sad or unhappy

• Arriving to work late/leaving early/taking long breaks

• Confused thinking or problems concentrating

• Extreme mood changes, including rapid or dramatic shifts inemotions or depressed feelings

• Prolonged or strong feelings of irritability or anger

• Changes in sleep or eating habits

• Multiple physical ailments without obvious causes (such as head/stomach aches, vague and ongoing “aches and pains”)

• Inability to carry out daily activities/work duties

• Abuse of substances like alcohol or drugs

• Acting recklessly or engaging in risky activities

• Threatening to hurt, kill or seeking access to a means to harm oneself

WHAT TO DO

• Provide access to and continually communicate mental health resources

(benefit plan, EAP, local resources)

• Encourage managers to show empathy

• Be available for employees to talk to, and listen nonjudgmentally

• Normalize the conversation around mental health (have leadership share

stories or send an email promoting the EAP)

• If someone you know needs help, call the National Suicide Prevention

Lifeline at 1-800-273-8255 or call 911

WARNING SIGNS – REMOTE EMPLOYEES

WHAT TO LOOK FOR

• Slow response time to emails/voicemails

• Absent or late for meetings

• Sounding different on the phone (distant, apathetic, disconnected, sad, lonely, etc.)

• Noticeable difference in work product (missed deadlines, lower quality, less productive, etc.)

• Emailing or returning calls at odd hours (unless you are expecting odd work-hours due to juggling work/home obligations)

• Changes in work relationships among colleagues (no desire to interact, ignoring requests to talk socially, etc.)

• If you’re “friends” on social media, look for changes in posts, things they’re sharing, or even lack of posting if they’re typically more active

WHAT TO DO

• Provide access to and continually communicate mental health resources

(benefit plan, EAP, local resources)

• Set-up weekly/monthly staff meetings (use video chat if available)

• Emphasize interaction and connection between employees (virtual coffee breaks)

• Encourage breaks throughout the day (get outside, workout, take stress breaks, etc.)

• Encourage managers to show empathy

• Be available more than you normally would (send quick texts, IM, email, voicemail, etc.)

• Monitor workload and make adjustments if appropriate/possible

• Find online trainings and new learning opportunities to recommend to employees

• If someone you know needs help, call the National Suicide Prevention Lifeline at 1-800-273-8255 or call 911

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FREE RESOURCES – AVAILABLE TO YOU AND YOUR EMPLOYEES

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View this document for a comprehensive list of mental, financial and physical health, addiction, and parenting resources.

imacorp.com/wellbeing

FREE RESOURCES – AVAILABLE TO YOU AND YOUR EMPLOYEES

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Resource Contact Information

Nationwide

Mental Health America mhah.org/resources/local

Man Therapy mantherapy.org

Substance Abuse and Mental Health Services Administration

samhsa.gov

National Institute of Mental Health nimh.nih.gov/index.shtml

Mental Health.gov mentalhealth.gov

Mental Health First Aid Training mentalhealthfirstaid.org

CHECKING IN ON YOUR EMPLOYEES DURING COVID-19IMA is offering a no cost survey to all employers to help capture feedback from employees, checking in on the following topics:

• Leadership• Social Distancing• Communication• Personal check-in

Results will be provided to employers within two weeks.

If you are interested in surveying your employees, contact your IMA representative or kim.horn@imacorp.com

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QUESTIONS & ANSWERS

PANELIST BIOS

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BRIAN R. BOVASSOMANAGING DIRECTORIMA EXECUTIVE RISK SOLUTIONS

Position Brian is an attorney who specializes in D&O and related executiveliability insurance, and is responsible for client consultation andrelationships, insurance program design and implementation,insurance carrier relationships and strategic business development.Brian has worked through two “hard” insurance markets and for thelast twenty years has exclusively represented pre-IPO and publiccompanies.

Experience 2013 – Present, Managing Director, IMA Executive Risk Solutions2000 – 2013, Senior Vice President, Aon Financial Services Group

Education Juris DoctorCreighton University School of Law, 2000

Bachelor of ArtsCreighton University, 1997

JILL DIGRAPPAWELLNESS ADVISORIMA BENEFITS, WHOLE HEALTH (WELLNESS)

Position Jill is responsible for consulting with all IMA clients that strive tointegrate wellness into their corporate culture. Jill thrives on herability to discover where clients currently are within their wellnessstrategy, understand what their goals are, and strategize how best to helpthem reach the outcomes they desire. Her commitment to working with allIMA account teams to find the right solution for each unique client is anintegral component to ensuring customers feel supported in their wellnessinitiatives.

Experience 2018 – Present, Wellness Advisor, IMA Benefits2004 – 2018, Fitness Center Manager, then Senior Account Manager,Healthbreak Incorporated

Education Bachelor of Science in Health and Exercise; Science – Health PromotionEmphasisColorado State University, 2004

Certification Certified Exercise Physiologist, American College of Sports Medicine

Certified Corporate Wellness Specialist, Corporate Health and WellnessAssociation