What do you do when your management liability portfolio isn’t producing the same rate of return it has in the past? The returns on today’s D&O and EPLI policies are diminishing and are actually costing some companies money. Executive Summary With carrier profits are dwindling in the management liability insurance, executives from MGU Business Risk Partners recommend a back-to-basics approach to reverse the declines, and a close look at A-side coverage in the wake of last month’s $139M News Corp. verdict.
When steady returns of 15 percent to 35 percent year after year are replaced by 5 percent returns—or even losses, you know you have a problem.
So how do you reverse the situation and move forward in more profitable ways?
The first thing your team needs to do is “data up” to help paint an accurate picture of what’s causing the losses or reduced returns. Although claims data is a vital resource that companies already collect, it’s not always gathered in accessible and dissectible ways or effectively reviewed.