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Executive Summary, Q1 2020

ICPL/E&O and D&O Insurance

Insurance Consulting and Technology
COVID 19 Coronavirus|Insurer Solutions

By Kevin Kirby | May 21, 2020

A series of insights diving into the current state of the D&O and ICPL insurance marketplace and insurance company industry issues impacting insurance policies.

We are pleased to present FINEX’s Insurance Company Market Update for Q1 2020. In this issue, we explore the current state of the Directors’ & Officers’ and Insurance Company Professional Liability (ICPL) insurance marketplace. In addition, we identify new and emerging issues within the insurance company industry and discuss what impact those issues may have on insurance policies.

As Q1 2020 came to a close, the entire world was responding to the unique and unexpected personal and professional challenges presented by the COVID-19 pandemic. Unprecedented in its scope, the virus itself, along with the market volatility that followed, has already had tremendous consequences for virtually all industries and all lines of coverage across the globe. It has been the most significant issue affecting both insurance company and the D&O and ICPL insurance market this quarter and will likely continue to do so for the foreseeable future.

Though the full extent of the virus’ impact on D&O and ICPL insurance for insurance companies is yet unknown, we do know that the pandemic has added a new layer of volatility on top of an already challenged insurance environment. Insurance companies are facing greater public scrutiny than ever, as they are subject to a complex set of new mandates which vary across state and continue to evolve over time. As a result, the marketplace is taking a far more cautious approach to the renewal process and are expected to be far more invasive in their underwriting protocols than in years’ past. Renewals will be challenging so beginning the renewal process early is critical, as D&O and ICPL carriers will likely seek increases in both premiums and retentions, while carefully managing the limits they will provide and scope of coverage they will afford.

Although the COVID-19 pandemic is the most prominent issue currently, we have not lost sight of the fact that other new and emerging issues are also affecting the insurance company industry. Noteworthy items addressed within this edition include cost of insurance litigation, complex and evolving regulatory framework, social inflation and the effects of climate change on the industry. We discuss these issues in detail and identify the potential implications they may have on an insurance company’s risk profile, as well as their D&O and ICPL policies.

There are many challenges facing insurance companies this year. However, we hope this publication offers valuable insights to help you successfully navigate through these turbulent times. Should you have any questions or wish to discuss any of these issues in greater detail, please engage myself or a member of your Willis Towers Watson team.


Table of Contents


  1. 01

    Insurance Company Professional Liability insurance market, Q1 2020 update

    Kevin Kirby | May 21, 2020

    ICPL insurance market highlights; including a focus on cost, markets, targeted segments, capacity, coverage, and COVID-19 impact.


  2. 02

    Insurance company industry trends – Key issues to watch, Q1 2020 update

    Kevin Kirby | May 21, 2020

    Key concerns and recommendations for insurance companies.


  3. 03

    Insurance company industry trends – COVID-19 impacts, Q1 2020 update

    Kevin Kirby | May 21, 2020

    Key concerns and recommendations for insurance companies based on the potential impact from COVID-19.


  4. 04

    Challenging venues & jurisdictions, according to the American Tort Reform Foundation

    Kevin Kirby | May 21, 2020

    The top 10 least favorable states, cities, counties and courts based on litigation.


Disclaimer

Each applicable policy of insurance must be reviewed to determine the extent, if any, of coverage for COVID-19. Coverage may vary depending on the jurisdiction and circumstances. For global client programs it is critical to consider all local operations and how policies may or may not include COVID-19 coverage. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal and/or other professional advisors. Some of the information in this publication may be compiled by third party sources we consider to be reliable, however we do not guarantee and are not responsible for the accuracy of such information. We assume no duty in contract, tort, or otherwise in connection with this publication and expressly disclaim, to the fullest extent permitted by law, any liability in connection with this publication. Willis Towers Watson offers insurance-related services through its appropriately licensed entities in each jurisdiction in which it operates. COVID-19 is a rapidly evolving situation and changes are occurring frequently. Willis Towers Watson does not undertake to update the information included herein after the date of publication. Accordingly, readers should be aware that certain content may have changed since the date of this publication. Please reach out to the author or your Willis Towers Watson contact for more information.

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