Carriers new to this issue of The Betterley Report include Allied World, Argo (both Group and Re), and USLI.
Here are some comments from the Report, now up to 103 pages.
About the market:
- As we participate in industry conferences focused on EPLI, there is a strong undercurrent of discomfort with underwriting results. Attributable mostly to increased claims activity emanating from the Great Recession supplemented by increasing costs of defense, carrier product leadership seems poised to insist on some relief.
- We think this relief will take the form of increased deductibles, and perhaps a bit of rate increase. Deductibles are the preferred route, as insureds will typically be more willing to accept a possible increase in potential cost (if there aren’t any claims for an insured, their cost doesn’t increase).
About Wage and Hour:
- Wage and Hour should be insurable for small- to mid-sized employers. We think there are many instances where the violation was unintentional, not caused by an employer trying to deny its employees a just compensation. While we do not believe that insurance should step in to pay for compensation found to be owed to the employees, nor to pay for related governmental fines, multiplied damages and attorney’s fees could be covered.
Your comments are encouraged.