Advisen Library
Advisen's briefings and topical reports examine a wide range of issues, both current and long-term, concerning the commercial insurance industry and its professionals. From the sub-prime mortgage meltdown, to Hurricane Katrina, to cyber liability, these reports break down the complexities and subtle issues behind events, and clarify their impact on insurance professionals in a meaningful and authoritative fashion.
Managing Cyber Supply Chain Risks May 2013
Supply chain risks often are characterized in terms of tangible property exposures such as fires and natural catastrophes. Physical damage to buildings, machinery and transportation infrastructure, however, are not the only potential causes of supply chain disruptions. Information and communication technologies are vulnerable to hardware and software failures, as well as to damage caused by hackers and malware writers. Significant cyber-related supply chain disruptions are rare, but a large-scale cyber event holds the potential to be as damaging as a major natural catastrophe. Companies should implement a supply chain risk management program to proactively address these exposures. They also should consider insurance specifically designed for cyber-related risks, including supply chain risks.
Quarterly D&O Claims Trends April 2013
Securities Lawsuit Trends: Class Actions & Beyond. Advisen analysts report on the frequency and severity of securities suits, including class actions, breach of fiduciary duty suits, regulatory actions and derivative actions, providing insights on emerging trends by suit type, allegation type and industries being targeted as defendants.
Cyber Risks of Asia-Pacific Companies and the Role of the Risk Manager April 2013
Cybercrime is on the increase throughout the world, and no organization in any country can consider itself immune from attack. Asia-Pacific companies often excel in the governance aspects of data security and privacy regulation compliance, but security experts often note that many fall short in implementing comprehensive plans to protect their data. This report, sponsored by Zurich, examines the cyber exposures of Asia-Pacific organizations, analyzes the strengths and weaknesses in cyber risk management of regional organizations, and offers insights into risk management best practices. It also looks at the present and potential contributions by risk managers to corporate data security management, and outlines insurance solutions to data security risks.
Many directors and officers of private companies believe that D&O insurance principally provides protection against shareholder lawsuits, which they largely envision as a public company problem. Private company directors and officers, however, are exposed to a large number of risks for which D&O may represent the best protection. This report examines the various types of liability faced by private company board members and executives, offers practical insights for managing those exposures, and discusses the value of D&O insurance.
Marine Insurance Market and the Lessons Learned from Superstorm Sandy Sponsored by AIG March 2013
Claims from Superstorm Sandy have overwhelmed the marine market, and when all is said and done, it will likely be the largest marine loss event of all time. This Advisen report sponsored by AIG examines the impact of Superstorm Sandy on the commercial and recreational marine market and strategies to mitigate future risks.
The State of the European D&O Insurance Market: 2013 March 2013
European directors and officers are increasingly exposed to investigations, regulatory enforcement actions and lawsuits, sparking demand for Directors and Officers Liability (D&O) Insurance. In an overall shrinking commercial insurance marketplace, D&O is one of the few lines of business to be growing - a key reason more insurers are entering the D&O market. As a result, competition is pushing pricing down, even as the frequency and severity of claims increase.
The Liability Implications of Healthcare Reform February 2013
With the re-election of President Obama, the full implementation of the Patient Protection and Affordable Care Act (PPACA) seems nearly certain. PPACA has profound implications for the health insurance industry, but it also will impact -- and in fact already is impacting -- specialty insurers. New models of healthcare delivery and compensation are transforming the risk profiles of hospitals and physician groups, creating challenges for risk managers to assure that risk management and insurance programs are appropriate to changing exposures. This report examines how healthcare delivery is being transformed by reform measures, demonstrate how those changes are reshaping the risk profiles of healthcare providers, and discuss how the specialty insurance industry is responding.
Political Risk Exposures of Financial Institutions Sponsored by AIG February 2013
As companies increasingly look to capitalize on previously untapped, underserved or underutilized regions of the world, the influence of politics on business has become a bigger threat than ever before. This Advisen report sponsored by AIG explores the current political risk landscape, its impact on financial institutions and strategies to mitigate the risk.
This second annual Advisen survey of European risk management professionals, sponsored by Zurich, reveals the cyber-related risks that most concern organisations, and the ways they are organising their efforts to combat them. The report, In Information Security and Cyber Liability Risk Management: The Second Annual Survey on Enterprise-wide Cyber Risk Management Practices in Europe, can be downloaded at no charge.
Paul Romano, President of OneBeacon Professional Insurance, has long recognized that those insurers that most effectively harness technology will be the best positioned to emerge as market leaders. Paul recently spoke with Dave Bradford, editor-in-chief of Advisen Front Page News, about how technology is transforming specialty insurance, ranging from systems to facilitate interactions with brokers and agents, to using Big Data and predictive analytics to improve underwriting decision-making, to the ways smartphones and tablets are changing the ways business people interact with one another.
Quarterly D&O Trends Claims: Year-End Wrap-Up January 2013
Securities Lawsuit Trends: Class Actions & Beyond: Advisen analysts report on the frequency and severity of securities suits, including class actions, breach of fiduciary duty suits, regulatory actions and derivative actions, providing insights on emerging trends by suit type, allegation type and industries being targeted as defendants.
Chemical Companies: Minimizing the Risks of Supply Chain Disruptions Sponsored by AIG January 2013
Chemical company supply chains can extend across the globe and are subject to interruption by a wide array of events. Consequently, supply chain risk is a rapidly growing concern for risk managers. This report overviews the global supply chain challenge for chemical companies and reviews specific losses. Risk management process are discussed and steps to maximize supply chain resilience are included. This free, 7-page report is sponsored by AIG.
The State of the Commercial Property/Casualty Insurance Market Sponsored by Zurich January 2013
The commercial insurance market is in transition, with various forces competing to control its direction. Pricing is firming in many lines, but the drivers of heightened competition are lurking in the background. This report focuses on the forces at work in the market with the objective of providing brokers and insurance buyers' actionable information as they plan for year-end renewals and beyond.
Privacy and Data Security Exposures of Small and Mid-sized Companies Sponsored by XL January 2013
Owners and managers of small and midsize businesses (SMBs) often underestimate the threat of data breaches. That is unfortunate since they are increasingly vulnerable to having data lost or stolen. SMBs, in fact, have become a favorite target of hackers. This report, sponsored by XL, examines privacy and data security exposures of SMBs, offers practical risk management advice, and explains the insurance services and protections now available.
Insuring Mid-sized Companies against the Risks of International Commerce Sponsored by XL January 2013
For a growing number of companies, doing business in foreign countries is more than an opportunity – it is a competitive necessity.
This report, sponsored by XL, examines the most common insurance coverages required by companies doing business abroad, and discusses the issues that companies and their brokers need to take into consideration when purchasing a multinational insurance program.
The Specialty Insurance Market in Review: 2012 Events that will Shape the Market in 2013 and Beyond January 2013
Year In Review: A look back at the top stories, court cases, law changes and regulatory developments impacting specialty line insurers, brokers and their customers in 2013 and beyond.
Changing Role of the Healthcare Risk Manager Sponsored by OneBeacon Professional Insurance December 2012
This report sponsored by OneBeacon Professional Insurance examines the risk management challenges posed by the various new healthcare delivery models and discuss the ways that risk managers' roles and responsibilities are undergoing change as the continuum of care both expands and becomes more integrated, and as organizations embrace more holistic approaches to managing the full spectrum of risks.
This Advisen report sponsored by AIG explores the cyber-threats plaguing institutions of higher education, their vulnerabilities to these threats, the implications of certain privacy and data security regulations and strategies to mitigate the risk.
Trends in Business Globalization: The Implications
for Employees Health and Safety & Solutions for Addressing Them December 2012
The globalization of commerce has required many businesses to expand beyond their own borders to remain competitive, with emerging economies frequently representing the best growth opportunities. As a result, whether for a short term business trip or a longer term assignment, employees increasingly are required to travel to distant locations with unfamiliar cultures and often substandard healthcare systems. Since the health and safety of these employees is of the utmost importance, a growing number of companies provide a comprehensive travel accident plan, including features such as travel medical assistance and emergency travel assistance, to ensure their well-being until they return home.
Social Hacktivism December 2012
Although "hacktivism," is a movement with origins dating to the early days of the Internet, only since 2010, when Wikileaks made public hundreds of thousands of classified U.S. government documents, has the ensuing war over the censorship of digital information brought the topic to the forefront of public awareness. In the years since, this 21st century method of protest that combines computer hacking with political activism has become more common and more complex. Groups such as the hacker collective Anonymous and its offshoot organizations increasingly target companies and governments of which they deem politically incorrect and in doing so often cause significant damage to their reputation and profitability.
This Advisen report sponsored by Zurich explores the information privacy and reputational damage exposures of businesses due to hacktivism and strategies to mitigate the risk.
Industry Analysis: Health Care Services and Facilities December 2012
Advisen's Q3 2012 'Health Care Services and Facilities' Industry Analysis Report highlights several key financial industry trends including the financial and operational impact of the 'Patient Protection and Affordable care Act' on the health care provider community, the proliferation of health care IT infrastructure to meet the demands of 'accountable care' and the related increased exposure to patient data breaches, the recent activity within a select group of states revisiting tort reform initiative, and the current shortage of primary care resources in the face of increased demand for those resources.
Industry Analysis: Marine Transportation December 2012
The marine transportation industry plays a vital role in transporting goods and supplies that fuel the global economy. Yet for the last several years, this industry continues to face a combination of reduced revenue and increasing cost challenges that have prompted some firms to consider different ways to conduct business and drive revenue. Examples of some strategies include:
- Traditional ocean marine carriers moving into domestic and land-based transportation
- Asset heavy businesses transitioning into a model less reliant on asset ownership
- Changes in customer contracts and/or chartering patterns
This report reviews some of the challenges faced by the industry; how the business is changing and directions it may take in the future; and some of the risk mitigation and/or transfer strategies that might be considered toward a goal of reducing total cost of risk.
Industry Analysis: IT Consulting and Services December 2012
U.S. Secretary of Defense, Leon Panetta, warns of a "cyber Pearl Harbor," an attack which would "paralyze and shock the nation and create a new, profound sense of vulnerability.
How can America best be protected from crippling cyber attacks? The United States government has made several recent attempts to advance CyberSecurity legislation, but none have succeeded. With the election now behind us, what, if anything, will change? Is the government even best equipped to tackle this problem or should the private sector lead the charge, and if so, how?
This Advisen IT report will discuss recent government attempts to pass cyber legislation, what the legislation entailed, and the roadblocks to passage. It will also touch on the evolving nature of cyber vulnerabilities with respect to US industry, major areas of concern, and what firms need to do to protect themselves.
Reducing the Impact of Product Recalls on Balance Sheets and Brand Reputation November 2012
Product recalls, a necessity for consumer safety, have become more costly and more frequent than ever before. This Advisen webinar sponsored by ACE explores the impact of product recalls on business balance sheets and brand reputation and strategies for how to mitigate the risk.
Surety Considerations for Public-Private Partnerships November 2012
This Zurich sponsored report tracks the growth of PPPs in the United States, examines the risks posed by PPPs to contractors, and explains the implications for surety relationships.
This second annual survey, sponsored by Zurich, highlights current practices in data security, privacy, and social media risk management. More than 500 North American risk managers share their thoughts on cyber-related exposures, and their experiences with issues ranging from buying cyber liability insurance to embedding data security within enterprise risk management programs. New this year are questions addressing mobile devices and cloud computing.
Aviation Crisis Management Sponsored by Chartis October 2012
Serious aviation events are comparatively rare. That fortunate fact, however, means that when they do occur, it is quite possible that an aviation company will not be adequately prepared to respond. The nature and extent of crisis response varies significantly with the scope and nature of a company’s operations. What is necessary for every company, however, is to have a plan to gain control of the situation as quickly as possible. Gaining control not only means effectively and appropriately managing the details of the crisis response itself, it also means controlling the message – assuring that the company is seen by the media and others as the most reliable source of information, and that stakeholders are aware of the company’s actions to properly address the situation.
This Advisen Special Report, sponsored by Chartis, looks at various crisis scenarios and explains how aviation companies should be prepared to effectively respond to them.
Why are Financial Institutions being encouraged to now assume that all customers’ PCs are infected with banking malware? This Advisen report, sponsored by Chartis, explores the various cyber-threats plaguing financial-institutions, the potential consequences of these threats, the security steps being taken and whether or not this should be considered the new normal.
Clinical Trial Research in Healthcare Sponsored by ACE September 2012
Clinical trials, a necessity for healthcare innovation, increasingly are resulting in litigation against the parties connected to the study, including hospitals. This Advisen report sponsored by ACE explores the clinical trial liability exposures of hospitals, strategies for mitigating these exposures and frequent misconceptions regarding insurance coverage.
The Reputational Risk of a Data Breach Sponsored by NAS September 2012
Are companies losing customers and revenue following a data breach? This Advisen report sponsored by NAS Insurance explores the reputational risk of data breaches for small and medium size businesses as well as the insurance and risk management solutions designed to help them.
Protecting Business Income: Contingent Business
Interruption Insurance and the Evolution of Time Element Coverages September 2012
First the Tohoku earthquake and tsunami, and then the Thailand floods were wake-up calls to businesses around the world: supply chains are fragile and the consequences of disruptions can be devastating. But it does not require massive natural catastrophes to cause critical interruptions to businesses - even a minor fire in a mission-critical facility can bring a company to its knees.
This briefing, sponsored by CNA, explores the risk management strategies for addressing events that can disrupt businesses, and explains how time element coverages can provide essential protection against lost business income.
Cyber Security: The Growing Liability of Handheld & Mobile Devices August 2012
Handheld and mobile devices provide businesses with many benefits. But are the benefits worth the increased risk of a data breach? This Advisen report sponsored by Zurich explores the risks of handheld and mobile devices and what can be done by organizations to reduce their exposure.
Unbundling Services & Negotiating Collateral Flexibility August 2012
Risk managers can take control of their workers' compensation programs by unbundling them-gaining greater transparency into the cost of each claims-handling and loss control service component of the program, as well as greater clarity into service specifics.
Unbundling is a viable alternative for employers who want the claims management flexibility of self-insurance without the entire administrative burden.
Bonding Public Private Partnerships August 2012
In recent years government spending on public infrastructure projects has tightened as policymakers attempt to reign in the ever-increasing national debt. As a result, Public-Private Partnerships (PPPs) have gained traction as a method of confronting the nation's growing infrastructure challenges. By enabling private entities to accept a larger role in the planning, financing, construction, operation and maintenance of public projects, PPPs provide increased opportunities and a steady source of revenue for private sector participants. However, this increased responsibility also comes with increased risks and creates new implications for surety relationships.
The post-credit crisis era of securities litigation continued to leave its mark in the second quarter of 2012: down from the frantic highs, but elevated compared to pre-credit crisis levels. The somewhat improving economy, albeit shaky, over the past year helped, but a falloff in M&A activities over the past year was the primary driver in the drop in overall new securities suits. Fewer M&As resulted in a drop in merger-objection suits. Ironically, the central concern that could thwart the economic recovery, the Eurozone sovereign-debt crisis, is also the leading reason for the falloff in M&A activities. Easing of regulatory actions also contributed to the result of fewer suits in the quarter.
Exploring Cyber Security Within Accountable Care Organizations and Patient Centered Medical Homes July 2012
Accountable Care Organizations (ACOs) and Patient Centered Medical Homes (PCMHS) are signature parts of the Medical Shared Savings Program piece of the Affordable Care Act signed into law by President Obama in March of 2010. This Advisen Ltd. report sponsored by Chartis will examine the chain of liability within medical homes and ACOs, the risks associated with the implementation of Electronic Medical Records (EMRs), the factors that lead to security breaches within an ACO or medical home and the available risk management solutions.
Real Estate Equals Real Challenges: The Environmental Risks of Property Owners July 2012
Property owners cannot avoid environmental exposures. Even the most conscientious and risk adverse owners can inadvertently stumble into an environmental nightmare. However, by understanding their exposures and being diligent about environmental risk management, property owners can reduce the likelihood of having a serious problem, and will be better prepared to respond effectively if a problem arises.
This report, sponsored by Allied World, explains the environmental exposures faced by property owners, their potential liabilities and the most effective risk management and insurance strategies.
Financial Institutions in Focus July 2012
The unique management liability exposure of financial institutions has fueled a pricing trend in recent years that diverged from the downward slope for corporate risks. Find out if it will continue and what new exposures loom for FI risks.
The Aircraft Builders Council – Still Unique and a 57 Year Old Novelty July 2012
Aircraft Products Liability Insurance is an affordable insurance for most aircraft product manufacturing businesses that provides a risk financing tool that mitigates financial loss for aircraft and space mishaps. This two page article from the Aircraft Builders Council presents rationale for why mid-sized and smaller manufacturers should strongly consider purchasing products liability because...
Challenges in Collateralizing Large Deductible Programs July 2012
A large deductible insurance program often appears to be a reasonable alternative to purchasing traditional insurance. By retaining losses and managing risks through loss control and claims management, some insureds can realize significant savings. But while large deductible programs have the potential to reduce costs, insureds must effectively manage collateral, which is a requirement of large deductible insurance programs by insurers. If not managed properly, collateral requirements may at times be as significant in buying decisions as the premium cost for some large deductible casualty programs.
This Advisen report sponsored by Safety National examines the challenges of collateral frequently faced by insureds and the steps that can be taken to favorably impact insurer collateral requirements.
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In the not so distant past, it was only on television, in the movies or in our imagination that vehicles were equipped with artificial intelligence and able to drive by themselves. These futuristic vehicles could suggest alternative routes and communicate with the driver before a potential problem occurred. These were ideas for science fiction, not the real world. Fast forward to 2012: while the vehicles of today may not appear as advanced as those in some popular television shows and movies, in reality they are not far off.
Nowhere is this more apparent than in the trucking industry. Innovative technologies have been vital to this industry for decades, from the development of the Interstate Highway System of the 1950s, to CB radios of the 1970s, to the mobile and satellite technologies of today. Motor carriers and the transportation industry as a whole are now incorporating features such as on-board safety systems, efficient routing software, virtual training simulators, state-of-the-art seating, driver cameras and predictive modeling, to name only a few. The benefits of these upgrades are apparent as they often more than pay for themselves by maintaining compliance with government regulators, increasing efficiency, and improving safety, thereby reducing expenses such as insurance costs, downtime and potential litigation costs.
Securities Litigation Quarter 1 April 2012
After years of dramatic increases in securities litigation activities, and a record-setting 2011, the number of new filings dropped in the first quarter of 2012 to an annualized rate more akin to the level set in 2010. In addition to the effects that an improving economy has had on company fortunes, and thus on litigation, the falloff may be attributed in part to a decline in M&A activities leading to fewer merger-objection suits. At 377 new securities suit filings in Q1 2012, the annualized level of about 1,500 was 16 percent below the high watermark set in 2011. The number of new filings in the quarter was also 9 percent below the previous quarter, and over 33 percent below a year earlier in Q1 2011.
State of the European D&O Insurance Market April 2012
European directors and officers are increasingly exposed to investigations, regulatory enforcement actions and lawsuits, sparking demand for Directors and Officers Liability (D&O) Insurance. In an overall shrinking commercial insurance marketplace, D&O is one of the few lines of business to be growing - a key reason more insurers are entering the D&O market. As a result, competition is pushing pricing down, even as the frequency and severity of claims increase.
State of the Commercial P&C Insurance Market March 2012
An underwriting loss in 2011 and very low interest rates are among the factors prompting insurers to push for rate increases. Premiums are edging higher in most lines of commercial P&C business, but policyholder’s surplus – a measure of market capacity – remains near its all-time high. Rates are likely to continue to increase incrementally, but barring exceptional catastrophe losses in 2012, the type of hard market experienced in 2001-2003, when the average commercial lines premium shot up 50 percent, is unlikely.
This Advisen special report, sponsored by Starr Companies, examines the forces shaping the commercial P&C market and offers actionable insights for planning, decision making and reporting purposes.
Advisen Webinar: Hospital Property Risk Management and Insurance in a Changing World March 2012
A hospital is comprised of a wide range of services and functional units, resulting in complex engineering and property risk management challenges. To make matters yet more complicated, the healthcare sector is undergoing rapid transformation -- driven by factors such as changing demographics, new technologies, and legislated reforms -- which have implications for property loss control and risk management. Many hospitals also are under pressure to reduce costs, leading to difficult budgeting decisions that may mean fewer funds for property loss prevention measures.
The Gathering Front: New Realities of Terrorism Risk Sponsored by Chartis March 2012
Terrorism can occur anywhere in the world at any time; any person, business or country can be its target. It can occur on land, in the air or in the water, and in food supplies. It can be directed against physical structures and even against the largely unseen computer networks. As terrorism evolves, so too must corporate risk managers and safety professionals. They must look for vulnerabilities in every facet of their operations.
This Advisen report, The Gathering Front: New Realities of Terrorism Risk, sponsored by Chartis, offers risk managers practical insights various facets of terrorism as they continue to develop plans to protect employees, physical assets and data, wherever they may be around the world.
European risk and insurance management professionals recognise a broad array of cyber-related risks as significant threats to their organisations, ranging from social media risks to data breaches to business interruption resulting from a malicious attack. Once considered exclusively the purview of the Information Technology department, the management of these exposures is now viewed by many organisations as an enterprise-wide concern.
This Advisen survey of European risk management professionals, sponsored by Zurich, reveals the cyber-related risks that most concern organisations, and the ways they are organising their efforts to combat them. The full five page report, A New Era in Information Security and Cyber Liability Risk Management: A Survey on Enterprise-wide Cyber Risk Management Practices in Europe, can be downloaded at no charge.
The Risks to the Retail and Hospitality Industries March 2012
The buzz around cloud computing continues to grow, but some retail and hospitality companies have been hesitant to jump on the cloud bandwagon. Although the benefits of cloud technology are apparent, these companies have an overall level of trepidation as to whether the cloud can provide a secure and reliable platform for facilitating PCI-compliant transactions. However, the lure of reducing costs, improving efficiency and moving away from outdated legacy applications are proving hard to ignore as companies begin to explore the opportunities that exist in the "cloud."
This report examines both the benefits and the risks of cloud computing for companies in the retail and hospitality industries and offers practical insights into how they can take advantage of the cloud while assuring data security and PCI compliance.
The Liability Issues of Cloud Computing Service Providers Sponsored by CNA February 2012
“The Cloud” is where many technology companies now reside. Cloud Computing enables individuals and businesses to operate in a cost effective and efficient manner. Few would argue that this method of computing does not offer businesses potential benefits, however, the cloud service provider and its clients are also exposed to a host of risks including data security, privacy and business interruption, all of which have the potential for financial liability.
In this CNA sponsored Whitepaper produced by Advisen Ltd. we will explore government regulations that have had liability implications for cloud providers, the changing standards industry contracts, risk mitigation and the role of insurance.
Securities Litigation Hits Record in 2011 January 2012
From heightened regulatory activity to opportunistic litigators, new securities filings in 2011 built upon the new plateau established in 2009 and 2010. Driven substantially by regulatory actions and an up tick in securities class action suits, new filings in 2011 were up 10 percent over 2010. But despite the growing volume of litigation, premiums -- especially for public companies -- remain mired at soft market levels.
Driving Down Claim Costs with Predictive Modeling Sponsored by Zurich December 2011 
Tools based on predictive modeling are transforming claims management. In workers’ compensation, automobile liability, general liability, medical professional liability, etc., predictive modeling enables insurers to identify problematic claims soon after they are reported, and to quickly allocate the necessary resources to mitigate losses. Predictive models also are used throughout the lifecycle of a claim to identify emerging problems and to flag potentially fraudulent activity. As a result, significant cost savings can be achieved.
This 6 page report, sponsored by Zurich, explains the principles of predictive modeling and demonstrates how insurers and risk managers are using groundbreaking new tools to help contain claim costs.
Market Trends Impacting Multinational Travel Risk Management Sponsored by ACE December 2011 
After a decline resulting from the “Great Recession,” international travel is on the rise. Not only are business people, students and nonprofit volunteers traveling more, destinations for overseas assignments and study abroad programs are changing as emerging economies become vital engines of global economic growth. Corporations, universities and nonprofit organizations all recognize their obligations to address the health and safety issues of foreign travelers. Increasingly risk management departments are structuring comprehensive programs combining insurance and travel services to provide foreign travelers with access to high quality medical care, health and safety information and evacuation from dangerous situations if necessary.
State of the Insurance Market Sponsored by Swett & Crawford November 2011
Rising premiums during the third quarter is good news for property/casualty insurers, which have endured eight years of soft market conditions. Rate increases, however, may not yet be sustainable. Capacity is at near-record levels despite one of the worst years ever for catastrophe losses. Underwriters undoubtedly will try to push rate levels higher, but it will be an uphill fight against excess capacity, which encourages competition.
This six page Advisen Briefing, sponsored by Swett & Crawford, examines the forces shaping the current property/casualty market and offers valuable insights for January 1 renewals and beyond.
The Myths of Volunteer Immunity Sponsored by CNANovember 2011 
The nonprofit sector would be a shell of what we know it to be today without the billions of hours of donated time provided every year by volunteers. In order to protect these civil servants from personal liability, and encourage volunteerism, the government has passed volunteer immunity laws to provide some protection from civil liability. While these laws provide a degree of protection they are not complete solutions. This is a common misunderstanding by many in the nonprofit sector that could lead to disastrous consequences.
Perhaps it's a new dawn, as the business community begins to wake from the slumber, and nightmares, of the credit crisis. Or perhaps it's the morning calm before the sun once again rises to shine its light on the next scandal. The credit crisis brought about a rise in litigation activities for all major types of securities suits. After a record first quarter, however, new filings in 2011 demonstrated a steady drop for most types of suits, falling to a pre-2009 level in the third quarter, as 2009 was when credit crisis-related suits began to mushroom. At 316 securities suits filed in Q3 2011, new filings are down from 367 in Q2 and the high of 421 in Q1. Despite these figures, the record-setting first quarter leaves 2011 thus far at an annualized level higher than all previous years, and Q3 annualized was greater than all years prior to 2009.
Social media is a fast and inexpensive way for Healthcare Organizations (HCOs) to communicate with patients and employees. Many top HCOs prominently use social media for communication. The Mayo Clinic, for example, has over 120,000 followers on Twitter. But as HCOs utilize these online tools to increase visibility, encourage communications with patients and market products and services, significant business and reputational exposures must be considered. Social media can be an effective tool for delivering an organization's message, but the use of social media by HCOs must be tightly controlled to avoid monetary and reputational penalties.
This new Advisen report, sponsored by OneBeacon Professional Insurance, examines the social media risks faced by HCOs and their employees, and offers practical advice for mitigating risk.
Increased enforcement of existing environmental regulations in the United States is not the only trend that should have risk managers in a wide range of industries re-examining environmental risks. The U.S. Environmental Protection Agency has its sights on areas that it never regulated before, including stormwater runoff from diffuse sources such as agricultural sources and municipal parking lots, and 90 new contaminants. Beyond enforcing Superfund more rigorously-adding sites to the National Priorities List (NPL) at a pace not seen in more than a decade--cleaning up water and air pollution has become a rallying cry for the EPA. In Europe, EU member nations are slowly working to implement the Environmental Liability Directive--one country at a time-subjecting heavy industrial businesses to a strict liability standard for pollution events, and holding businesses in other industries accountable under a negligence standard. The time is now to get ahead of the regulatory curve-in the United States and outside U.S. borders. This special webinar examines how and where regulators are targeting traditional environmental risks and new ones, as well as the role of insurance and local claims specialists around the globe.
A growing number of organizations are now realizing that cyber security extends well beyond the IT department. A wide range of issues such as lost or stolen data, violation of privacy laws, intellectual property infringement and social media-related risks such as cyber-bullying and textual harassment constitute a much broader scope of cyber exposures. To gain insight into the current state of enterprise-wide information security and cyber liability risk management, Zurich sponsored a survey of 503 risk managers, administered by Advisen Ltd. This 9-page report, A New Era in Information Security and Cyber Liability Risk Management: A Survey on Enterprise-wide Cyber Risk Management Practices, not only offers insights into best practices in information security and cyber risk management, it also provides a useful framework for risk managers and other to benchmark their own programs.
Organizations that implement social media business strategies face a variety of liabilities for their online activities ranging from copyright infringement to invasion of privacy to consumer fraud law violations. However, the benefits of corporate use of social media often outweigh its risks. Often the more difficult challenge a company faces is the adverse effects caused by the unsupervised activities of its employees while using social media. While it can be an effective business tool, social media has also proven to be an easy way for employees to communicate sensitive or inappropriate information outside the organization, enhancing the potential for legal implications. Organizations are now finding that they are exposed to an array of liability due to the use of social media by their employees.
This report, the second in a three-part series on Social Media sponsored by OneBeacon Professional Insurance, examines the risks faced by organizations for the social media activities of their employees, and offers practical sugestions for controlling those risks.
Governments across Europe, to varying degrees, have passed laws requiring new financial disclosures, enhanced shareholder protections, and greater transparency. Many have developed formal structures for collective action proceedings by shareholders or their representative. Previously thought a luxury of large companies, D&O liability insurance in Europe is primed for robust growth across companies of all sizes as it is increasingly viewed as essential. Changes to laws governing executive responsibilities, increased cross-border regulator vigor, and greater access to collective litigation will drive this growth.
Social networking is a ubiquitous part of life in the 21st century. Companies across the world are recognizing the power of social media and are rushing to create Facebook pages and amass followers on Twitter. Many firms use social networking websites to research job candidates and some to monitor employee activities. Online social networking can be a powerful tool for organizations of all types, but it also presents a bewildering and rapidly evolving web of liability exposures. Potential sources of liability range from copyright infringement to invasion of privacy to consumer fraud law violations.
Aircraft Products Liability Insurance is an affordable insurance for most aircraft product manufacturing businesses that provides a risk financing tool that mitigates financial loss for aircraft and space mishaps. This two page article from the Aircraft Builders Council presents rationale for why mid-sized and smaller manufacturers should strongly consider purchasing products liability because...
Since the onslaught of the credit crisis, suits against financial services firms, particularly regulatory actions, have been filed at a fevered pitch. In the second quarter of 2011, the fever may have finally broke, as both overall regulatory actions and lawsuits filed against financial services firms have slid back to pre-credit crisis level. At 332 securities suits filed in Q2 2011, new filings are down from the high of 398 in Q1, but the annualized level remains on par with the record-setting year of 2010. The falloff in overall new filings from Q1 to Q2 resulted from the falloff in regulatory actions against financial services firms, at levels unseen since the pre-credit crisis year of 2006...
Catastrophic and potentially ruinous breaches are increasingly common. What may begin as an investigation into a seemingly manageable security problem sometimes mushrooms into a disaster, with skyrocketing notification, monitoring, remediation and reputational damage costs...
In any given year, there are scores of earthquakes, most barely significant enough to rattle a teacup. But since January 2010, the globe has been rocked by eight quakes of magnitude 6.1 or greater, one of which was 9.0. Two resulted in enormous loss of life and many caused significant property damage.
Workers' compensation has been a hotbed of risk management and insurance innovation in recent years. Runaway claims costs have led to sweeping changes in the ways submissions are underwritten and claims are managed.
Private equity investments into not-for-profit health care institutions is booming. The capital infusion has brought welcome relief to many hospitals, which had been brought to the brink by rising operating costs and diminished revenues.
Securities suit filings are on track to set a new record in 2011. Following on the heels of the credit crisis, which sparked record-setting litigation in 2008 and 2009, 2010 set yet a new record at 1,293 suits filed. Based on the volume of suits filed in the first quarter, 2011 may surpass last year's all-time high.
Insurance buyers are likely to enjoy continued favorable pricing conditions through 2011, but the convergence of a number of factors suggests that a firmer market may be on the horizon.
Slowly, but with growing certainty, the economy is recovering. Improving economic vitality is good news, but for many companies, their risk profiles change as business activity picks up. Increased activity means proportionately more losses: more trucks driving more miles will inevitably result in more accidents, for example.
Merger objection suits are lawsuits filed by disgruntled shareholders of a company that has been, or is about to be, acquired. The number of lawsuits filed skyrocketed in recent years, even as the number of mergers and acquisitions plummeted during the Great Recession.
The insurance pricing cycle is driven by the law of supply and demand. For the past several years, the supply of insurance capacity has exceeded the demand for that capacity, forcing prices down.
With the credit crisis subdued, and the depths of Great Recession left behind, 2010 was a year of healing, albeit at a modest GDP growth-rate and scant jobs growth. The year saw credit crisis-related suits wind down and previously white-hot filings of Madoff-related cases cooled.
Download "Preemption and REMS: Evolving Risk Landscape for Generic Drug Manufacturers," a new Advisen whitepaper sponsored by Lexington Insurance Company. The report examines the doctrine of preemption, how it applies to the pharmaceutical sector, the critical Wyeth v. Levine Supreme Court decision, other pending cases, as well as their impact on generic drug manufacturers. more....
The commercial property & casualty insurance industry is overcapitalized, which fuels price competition. Insurers look to put excess capital to work, which results in a glut of insurance capacity and a highly competitive market. more....
As gigabytes and terabytes of digital information became easily available to anyone with an Internet connection, a dilemma for content creators surfaced: how can information be monetized when many users of information expect it to be free? "The Battle to Survive the Digital Age: Monetizing Online Information," sponsored by OneBeacon Professional Services, examines the risks faced by a wide array of online content companies. more....
This article observes that valuation multiples of insurance companies have declined significantly during the crisis and have not recovered. These lower valuations reflect investors' concerns about future profitability and growth as well as the potential impact of weaknesses in risk governance and management on the value of their investment. more....
In a quarter marked by the signing of the Dodd-Frank financial reform, establishing future governance burdens, plaintiffs' attorneys had no problem finding current complaints to file. The number of securities lawsuits filed in the quarter, including derivative actions, regulatory suits, and securities class action suits, among others, remained at inflated levels. more....
Creations of the mind, or intellectual property (IP), have become increasingly important sources of wealth and power in the global marketplace. Organizations, countries and individuals that possess know-how also have the keys to growth and economic development. These assets, however, are constantly being attacked on various fronts by competitors, organized crime and others. more....
Every organization that handles credit card transactions or maintains records about its clients should be concerned about data security. Breaches occur with alarming frequency, and even a moderate breach can cost a company millions of dollars in response costs, system repairs, lawsuits and fines and penalties. Like every other company, information technology companies should be certain their data is secure. more....
Patents, copyrights, trademarks and other forms of intellectual property (IP) are among the most significant drivers of competitive advantage for many companies today. These intangible assets are highly vulnerable to misappropriation and theft, requiring companies to implement various safeguards to protect them. more....
Exactly how extensive are the insurance ramifications of the Deepwater Horizon oil rig disaster and spill in the Gulf of Mexico now considered to be the largest offshore oil spill in US history? more....
A surge in securities litigation in the second quarter of 2010 was driven by short term reactions to headline-grabbing events as well as what are shaping up to be longer term shifts in litigation trends. more....
This paper discusses how insurance companies can use analytics to break strategic stalemates that prevent them from creating value. It shows what they need to do to generate the needed risk insights, at the intersection of the strategy, risk management, underwriting, investment and actuarial disciplines. more....
One of the important requirements of AIRMIC members is access to more and better benchmarking data. In response to this requirement, AIRMIC commissioned Advisen to undertake research with the membership into Property Damage / Business Interruption(PD/BI) insurance. The research and the publication of this benchmarking report have been sponsored by Willis, the global insurance broker.
The initial survey has yielded some interesting data. more....
The wrath of the credit crisis and the ensuing Great Recession took its toll on securities litigation in 2008 and 2009. Securities class action suits (SCAS) remained strong during this period, but it was regulator activities from many levels that erupted. more....
The commercial lines insurance market has been pummeled by the combined impact of deeply depressed rates and declining written premiums resulting from the global recession. Nonetheless, insurers will post a profit for 2009 and capacity remains abundant. more....
Data security is a widespread problem for companies across-the-board. Any entity with a presence on the Internet, with sensitive data on servers connected to the Internet, or transmitting data such as credit card payments, is exposed to this risk. more....
Wage-and-hour lawsuits have been an escalating threat to companies of all sizes over the past decade. Now outranking discrimination lawsuits, measured by both number of filings and size of settlements, these employment practices lawsuits have become an unforeseen calamity for companies across all industry sectors and a new challenge for risk managers. more....
Millions of people across the world now participate on social network websites such as Facebook, LinkedIn and Twitter. Businesses have discovered that social network sites offer new channels to reach customers and prospects, and can be sources of valuable information for evaluating job candidates. more....
Copyright violations are rampant on the Internet, and copyright infringement lawsuits - some demanding hundreds of millions of dollars - are on the rise. more....
Reflecting the general tenor of the first decade of the new Millennium, 2009 was a tumultuous year. From the depths of the Great Recession, to ballooning bailouts and a fictitious balloon boy, to the King of Pop's last moon-dance, to angry Tea Parties unfit for a queen, most feel happy to have left it behind. Securities litigation took a similar delirious path. more....
Directors & officers (D&O) liability insurance in Europe is primed for robust growth given changes to laws governing executive responsibilities and to collective litigation processes. Accounting scandals and corporate governance shortfalls in Europe cost investors billions of Euros in the early years of this decade. more....
Despite dismal 2008 results reported by property & casualty insurers, soft market pricing has prevailed in 2009. Recovering stock markets and a lack of significant insured catastrophes losses thorough the first half of 2009 have taken some of the financial pressure off insurers. more....
Securities lawsuit filings came in at a high clip in the third quarter, but below frantic first quarter levels. With 169 suits, Q3 2009 was up 11 percent compared to Q2 2009. Both securities class action and securities fraud cases grew solidly, representing approximately three-quarters of all filings. more....
In the battle for the large and profitable middle market, attracting and retaining top sales and account management talent is essential to success. more....
A shift in strategy now pits the largest brokers against mid-size firms in a battle for the middle market. Driven in part by responses to investigations by then-New York Attorney General Eliot Spitzer. more....
Securities lawsuit filings fell off from in the second quarter from frantic first quarter levels, with 140 suits down substantially from 221 in the first quarter, but the average settlements and awards spiked. Filings were down across all securities case types, as securities class action, securities fraud and breach of fiduciary duties represented the lion's share of cases. more....
Some insurance company executives are trumpeting the return of the hard market, but Advisen insurance program data from risk managers and brokers show that soft market conditions persist in most lines of business. more....
With 169 securities lawsuits filed in the first quarter, 2009 is trending higher than 2008. Filings were up for securities class action, breach of fiduciary duties suits and cases filed in courts outside of the United States. more....
Commercial insurance follows a boom-and-bust pricing cycle that, conventional wisdom proclaims, is largely uncorrelated with broader economic cycles. But the current recession is different. more....
Price: $299
The global credit crisis in the aftermath of the meltdown of the subprime mortgage market led to an explosion of securities lawsuits in 2008, but it was only one part of a rapidly shifting securities litigation landscape more....
Madoff Litigation Information more....
Advisen is tracking 68 Madoff-related cases already filed, and more are being filed on a daily basis. But how many of these suits will lead to insured losses? more....
A five-year soft market, fueled by chronic overcapacity, is coming to an end. Following two years of record profits, losses from both underwriting and investment activities are destroying excess insurance capacity, signaling that the bottom of the commercial insurance pricing cycle is near. more....
Private equity firms and hedge funds have seen stellar growth over the past decade, riding the wave of easy credit and eager investment pools more...
Utilizing the concepts of academic research on aggressive accrual accounting policies, Advisen introduced proprietary adjustments, and created a powerful tool - Advisen Total Accrual metric (ATACm) more...
Advisen Ltd., the leading provider of content, analytics, and technology to the global commercial insurance industry, released a special report based on a survey of brokers following the American International Group (AIG) liquidity crisis.more...
Most AIG commercial lines policyholders participating in an Advisen survey reported that, while they are confident in the financial strength of AIG insurance companies following the $85 billion loan by the federal government, more than two thirds plan to get quotes from AIG's competitors when their policies renew. more...
Advisen is committed to providing a portfolio of measures for insurance professionals, only available on Advisen, to consider in assessing the risk of companies.more...
Advisen Report: Liabilities incurred under sophisticated financial instruments ravaged American International Group. As AIG teetered on the verge of bankruptcy Monday and Tuesday, brokers were flooded with calls from nervous AIG policyholders. more...
Data security breaches can potentially cost companies tens of millions of dollars in fines and penalties, loss mitigation expenses, and settlements of lawsuits. more...As insurance products become more sophisticated and responsive to the data security risks of large companies, and as enterprise risk management processes are more widely implemented, corporate risk managers will be increasingly involved in the treatment of cyberliability exposures.
Which insurance decisions and coverage issues are likely to be impacted by Nanotechnology, the manufacture and manipulation of materials at the molecular or atomic level? Nanotechnology holds the promise of higher agricultural yields, diminished pollution, renewable energy sources and less expensive water filtration systems. more...However, the risks associated with these new processes and materials are still largely unknown. Insurers and risk managers only now are beginning to address the liability and safety issues associated with the impending onslaught of transformational products.
Cell phones have become an essential business tool, but studies have demonstrated that cell phone use while driving can lead to increased risk of an accident. Recent lawsuits highlight the potential liability of employers for damages caused by employees using cell phones while driving on company business. more...An employer with a strong cell phone policy will be in a far better position legally than the employer who has no policy. However, having a policy is not a bulletproof shield against liability.
After skyrocketing between 2001 and 2003, commercial insurance premiums in most lines have been falling since the beginning of 2004. The soft market shows fews signs of abating in 2008. more...Barring major catastrophes, insurance buyers should see steadily falling premiums throughout the year.
Traditional insurance products are inconsistent with certain Islamic principles. As a result, assets owned by Muslims are largely uninsured. Takaful, a viable alternative to traditional insurance acceptable to Muslims has recently emerged as one of the fastest growing segments of the global insurance market. more...The growth potential for Takaful in Muslim countries is clear, but a strong opportunity also exists in the US and Europe to meet the insurance needs of millions of Muslims and tens of thousands of Muslim-owned businesses. The opportunities also extend to the reinsurance market, as Takaful operators seek reinsurance coverage that also is in compliance with Islamic law.
The substantial financial losses associated with subprime mortgage lending and the follow-on impact on the credit markets are expected to result in increased frequency and severity of losses under directors and officers liability ("D&O") and errors & omissions ("E&O") policies. more...As of this date, insurance analysts have pegged the potential underwriting exposure of D&O and E&O insurers for losses resulting from subprime lending to be as high as $8 billion. This estimate does not include or address investment losses incurred by insurers through investment of their premium dollars. This analysis also does not address the related issue of D&O and E&O exposures arising from credit risk problems resulting from - but not related to - subprime lending.
To date, more than $170 billion has evaporated from the balance sheets of companies around the world as the result of the meltdown of the U.S. subprime mortgage market. more...Commercial banks and investment banks have been the hardest hit, with write-downs for Citigroup and UBS alone accounting for more than $28 billion. Losses have been nearly evenly split between U.S. and non-U.S. companies.
A flurry of high-profile recalls of Chinese-made products has sparked more than 100 lawsuits against American companies. more...The speed of China's expansion into the global export market has not been matched by a growth in the countrywide regulatory infrastructure, but American companies and consumers have few avenues of legal recourse against Chinese manufacturers.
Corporate governance and accounting scandals costing investors billions of Euros have led to new disclosure requirements, enhanced shareholder protections and a greater willingness on the part of investors to take legal action throughout Europe. more...nstitutional investors have become more active in policing corporate governance and performance. Lawyers and plaintiffs have gained experience in litigation against directors and officers, and U.S. law firms with broad experience in class action litigation are bringing their expertise to Europe. Litigation funding firms have proliferated. Some analysts predict that Europe is poised for an epidemic of shareholder suits.
Like every other industry, the insurance industry is subject to the law of supply and demand: when supply exceeds demand, prices fall. more...n the current market, aggregate policyholders' surplus - supply in the insurance supply-and-demand equation - is growing strongly, leading to heightened competition and downward pressure on rate levels. Unless catastrophe losses in 2007 are unusually severe, cutting deeply into aggregate policyholders' surplus, it is likely that commercial insurance buyers will enjoy sharply lower premiums in most lines of insurance throughout the year and into 2008.