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Special Section—PLUS 2006 Around the world with D&O Panel will discuss the globalization of D&O products By Phil Zinkewicz The word “globalization” is tossed around a good deal these days, especially in the insurance industry, and with good reason. In the last decade or so, many commercial insureds have taken advantage of barrier breakdowns between countries to market their products overseas. In response, insurance companies and brokers have broadened their horizons to include overseas markets in order to accommodate insureds that are spreading their wings. Look back about 25 years ago and the picture was a great deal different. Back then, the only truly international insurance company was American International Group (AIG), but that company had started overseas and branched out into the United States. Going in the other direction and running close on the heels of AIG in terms of globalization was Chubb & Son, whose chairman at that time was Henry G. Parker, III. Parker was determined to bring Chubb into the realm of international insurance. He did just that. Today, AIG and Chubb are recognized as market leaders in the globalization of insurance, although there are a number of relatively new players in the field. At this year’s PLUS conference, a panel titled “The Globalization of D&O—A Brave New World Awakens” will address a number of issues arising from the globalization of directors and officers products, including the need for a locally approved D&O policy, priority lists of coverage and service in considering D&O coverage, understanding international exposures that could lead to claims, and claims trends outside the United States. Moderating the panel will be James Proferes, deputy D&O product manager, Chubb & Son, Philadelphia. Panel participants will include: David Allen, vice president, General Re, Stamford, Connecticut; Richard Bortnick, Esq., Cozen O’Connor, Philadelphia; Ann Longmore, Esq., executive vice president, Willis Executive Risk Practice, New York; and Jim Nestheide, vice president, St. Paul Travelers, Crescent Springs, Kentucky. “In recent years, we have seen a demand on the part of U.S. companies operating overseas for D&O products that meet the regulatory requirements of local, foreign countries,” says Proferes. “Claims activity has increased in the D&O area in foreign countries, both in terms of frequency and severity. D&O has always been an exposure in overseas countries, but now buyers of insurance want the D&O product tailored to meet the demands of other countries.” Proferes says that D&O claims activity overseas has been in the areas of accounting procedures, tax requirements and regulatory compliance. “Often those areas result in a convergence of problems for U.S. companies operating overseas,” he says. “Another area of claims activity is in the employment area, especially as U.S. companies tend more to outsource their work forces.” Proferes says that the increase in claims activity has been seen in countries such as Brazil, Mexico, Bolivia, Argentina, Columbia, Bulgaria, Poland and Romania. “Traditionally, U.S. insurers have offered insurance products on the property and casualty side of the business, but D&O has not yet really been addressed, although there are companies out there perfectly capable of doing so. We intend to address the issues involving D&O in overseas markets at our panel. I will make some introductory remarks, ask each panelist to offer insight and then open the floor to a question and answer period.” * |
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