THE FUTURE FOR EMPLOYERS’ LIABILITY Phil Bell Royal and SunAlliance.
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THE FUTURE FOR THE FUTURE FOR EMPLOYERS’ LIABILITY EMPLOYERS’ LIABILITY Phil Bell Phil Bell Royal and SunAlliance Royal and SunAlliance
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Transcript of THE FUTURE FOR EMPLOYERS’ LIABILITY Phil Bell Royal and SunAlliance.
THE FUTURE FOR THE FUTURE FOR
EMPLOYERS’ LIABILITYEMPLOYERS’ LIABILITY
Phil BellPhil Bell
Royal and SunAllianceRoyal and SunAlliance
Overview of the Liability market 1990-2000
FIGURE 2 - LIABILITY REVENUE ACCOUNT(This graph shows data from ABI members only)
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
£bn
Premium Income Total Outgo Underwriting Result
The current market
Where we are now
How did we get there
– Over capacity– Law Reform– CFA– Market expertise and practice– Loss of capital– Equity markets
What have been the implications?
Reduced capacity
Premiums
Illegal trading
Capital
The DWP and OFT reports
The problems with EL
The long tail
Pricing
Reserving
Legal uncertainty
The hindsight factor
Legal costs
Risk selection
1. For underwriters
The problems with EL
1. For underwriters Cont’d Risk Management
- Proactive risk management
- All risk assessments have been undertaken
- All employees are properly trained
- Provision of all the necessary protective clothing or equipment
- Proper records are kept of everything that has been done
The problems with EL
2. FOR EMPLOYEES
The problems with EL
3. FOR EMPLOYERS
Why now?
Nothing new
Deafness in the 1970s
RSI in the 1980s
VWF and stress in the 1990s
Today it is asbestos ….. again
What next?
Is EL viable?
What is required?
Separate funding for accident claims and industrial
disease claims
Accident claims dealt with in existing way
Industrial disease claims to be funded separately
Is PL viable?
