Social Inflation Webinar: Your Questions Answered

Yesterday was the PLUS hosted webinar on social inflation. William Wilt and Alan Zimmerman did a fantastic job presenting their research on the topic. While there wasn’t time to get to every audience question during the webinar, our speakers took the time to answer the remaining questions below. A huge thank you to both our speakers!

Weren’t able to make it to the live webinar? The webinar recording will be available to members on the PLUS website here.

1. There’s no “Federal Reserve” charged with managing social inflation! But are there things that insurers can do to mitigate the effects of social inflation?

Many (maybe, most) insurers are currently taking steps to mitigate the impact of social inflation – raising deductibles and attachment points, lowering policy limits and raising prices. Through trade organizations many insurers are involved in the political and regulatory process including efforts to temper the current trend toward reversing tort reforms enacted in the earlier 2000s (e.g., Pennsylvania just expanded its statute of limitations for medical malpractice claims).

2. Which states are prone to social inflation California? Florida? Texas?

Yes – all three!  We gather this is a nationwide trend but do think there is value to studying (and watching for trends) at the statewide level.  We mentioned the unwinding of tort reform in PA and there are other states where that has happened as well (Texas may be one…it requires further study).  The trends do not necessarily align neatly with political lines.  For example, most insurers are experiencing legal challenges in Florida (e.g., AOB benefits and auto PIP) even though that state is largely controlled by Republicans.

3. Do you have any data measuring social inflation impact on private D&O or EPL specifically?

We do not, sorry, other than medical professional liability included in the slide deck.

4. Are you aware of any data or studies that explore the impact of social inflation in employment practices liability litigation? Perhaps specifically looking at the impact of the #MeToo movement?

We are not but suggest that it might be worthwhile…perhaps some law firms have published on the topic? Anecdotally, we’re aware that suits alleging harassment at the workplace are of particular concern to liability insurers.

Wilt Professional Pic 2013William Wilt is the president of Assured Research, a boutique research firm producing subscription content focused on business development, financial, legal, claim and other topics relevant to (re)insurance professionals.  Clients of Assured Research include global and U.S. focused (re)insurers, brokers, and consulting firms writing or controlling some $150 billion in premiums.  Assured Research also provides analytical content for the insurance investment community.

Bill’s 30-year career in insurance encompasses a range of professional roles.  Bill began his career as an actuary at a major reinsurance company and continued in the actuarial profession at a Big Four accounting firm.  Bill spent five years as a senior analyst at Moody’s Investors Service, followed by seven years at Morgan Stanley, where he was the lead equity analyst following over 20 (re)insurance stocks.  Prior to forming Assured Research, Bill worked in corporate development at two insurance companies where he oversaw M&A, risk management and business development, as well as rating agency relations.

Alan ZimmermannAlan Zimmermann is a Managing Director at Assured Research, LLC a research and advisory firm concentrating on the property-casualty insurance industry. He is a long-time insurance analyst who focuses much of his attention on accounting, regulatory and other global macro-industry matters.

Prior to joining Assured Research in 2013 he was the head of the property-casualty insurance research team at Macquarie Securities which he joined in 2009 with the acquisition of Fox-Pitt, Kelton Cochran Caronia Waller.  At FPK he held a variety of managerial and investment oriented positions including Director of US Research, Head of US Equities, and international research coordinator.

Continuing The Cyan Decision Discussion

Last Wednesday, December 12, PLUS hosted a webinar on the Cyan Decision and “The Post-Cyan Securities Litigation Landscape.” Two of the speakers from that webinar, Doug Greene and Nick Porritt, were able to get together and answer audience questions as well as expand on a few of the topics touched on during the webinar. Listen below to this additional look into the Cyan Decision!

GREENE_DouglasDoug Greene leads BakerHostetler’s firmwide Securities and Governance Litigation Team. Doug has focused on such cases since 1997 and is among a handful of full-time practitioners nationwide. Doug works hard to shape securities law, so that executives can speak publicly without fear of unfair liability. He is committed to making the merits matter again, especially in these smaller cases, by restoring a specialized defense bar; increasing defense counsel’s effectiveness and efficiency; and creating greater collegiality among defense counsel, insurers, and brokers – all critical characteristics in the post-Cyan era.

Porritt_NicholasNicholas I. Porritt prosecutes securities class actions, shareholder class actions, derivative actions, and mergers and acquisitions litigation. He has extensive experience representing plaintiffs and defendants in a wide variety of complex commercial litigation, including civil fraud, breach of contract, and professional malpractice, as well as defending SEC investigations and enforcement actions.

Missed the Cyan Decision webinar? PLUS Members can view past webinars on the PLUS website here.

Read more about this topic in the PLUS Journal article, “The Coming Securities Class Action Storm: Multijurisdictional Litigation After Cyan.”

Interested in more PLUS Webinars? Visit the PLUS website for more information on future webinars, and click here to register for the upcoming webinar on Wednesday, January 16, 2019: “Securities Litigation Reform.”

D&O Round Table: Disruption and the Potential Effects on Organizations

In case you missed the PLUS Webinar on January 4, D&O Round Table: Disruption and the Potential Effects on Organizations, the full broadcast of that event is available for PLUS members to view in the Multimedia Library. Please note, you must be logged-in to the website and a current member of PLUS in order to view this content.