evolving risks, exposures & coverages international d&o evolving risks, exposures &...

INTERNATIONAL D&O

EVOLVING RISKS, EXPOSURES & COVERAGES

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

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

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?

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)

Global Regulation & Criminal Redress:

Jurisdictions To Watch• UK Bribery Act

• U.S. Foreign Corrupt Practices Act (FCPA)

• UK Corporate Manslaughter Act

• Solvency II

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

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

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?

Questions & Answers

Questions&

Answers

Many Thanks To …

• David Bradford

• Perry Granof

• Ann Longmore

• Christopher Magee

• Edward Smerdon

• David Williams• Randy Hein (panel liaison for PLUS)