In risk assessment, there is no such thing as over analyzing.

We utilize a number of analytical tools to help you make sound risk transfer decisions. Examples include limit models, coverage metrics, carrier security models and our international executive liability risk matrix.

All of this analysis means that our findings will be unique to your situation. We go beyond just a fine product portfolio. We listen to your needs and use some of the best tools in the business to view your industry landscape in high definition. The result? A custom Arthur J. Gallagher & Co. management liability solution that’s precision-fit to your risk exposure, team and organization. 

We also monitor market changes in D&O policy provisions. Results of our analysis are depicted in the Norton-Bastion Index. This index alters depending on new coverage granted or new restrictions prevalent in the market.

With the index as a guide, we can evaluate our clients’ D&O programs and illustrate how their coverage stacks up in the market. The index, and where your company falls on it, provides a solid metric to board members.

  • Market Conditions Update: 2015 Public Company Directors and Officers Liability [ Market Report]

    The Gallagher Market Conditions Update: 2015 Public Company Directors and Officers Liability report notes that the D&O market has remained firm over the past four years, although trends clearly suggest lower prices are possible in the near future. This appears particularly true for publicly traded and larger businesses. Recent data from the Council of Insurance Agents and Brokers (CIAB) indicate that the majority of all recent renewals experienced single-digit increases.

  • Market Conditions Update: 2015 Private and Nonprofit Companies Directors and Officers Liability [ Market Report]

    The private company Directors and Officers market is firm but improving for Private and Nonprofit Companies. Though perhaps not as severe as the 2001-2003 period, it has been with us for almost four years. In fact, the overall harder market for D&O was led by the Private Company sector. Read the Gallagher Market Conditions Update: 2015 Private and Nonprofit Companies Directors and Officers Liability report.

Our proprietary analytics quantifies your technology, media and professional liability exposures based on your specific risk profile and risk control techniques. Our analysis incorporates multiple methods, including peer analysis or benchmarking, historical claim loss analysis and a series of complementary quantitative loss models that blend together to assess this complex risk.

  • Determining Coverage: Fraud-Related Coverages in Cyber Insurance [ Article]

    Cyber policies address the threats of intrusion attacks seeking to gain access to the insured’s computers and information. But how about social engineering fraud schemes such as telecommunication, funds transfer or computer fraud. There is potential for considerable overlap and confusion with the crime insurance policy.

  • Market Conditions Update: 2015 Cyber Liability Report [ Market Report]

    In 2014, cyber attacks made top headlines in striking retailers, healthcare companies, financial institutions and even entertainment companies. Given an increasing awareness that no business is above a cyber security breach, this risk exposure has become a top priority within many companies. The Gallagher Market Conditions Update: 2015 Cyber Liability Report provides a recap of 2014 cyber attack fallouts and a look ahead at key risk exposures for 2015. Are you prepared?

  • Cyber Risk & Privacy Liability: Risky Business? [ Whitepaper]

    Your company depends on computer technology infrastructure to efficiently conduct its day-to-day business, but this growing dependence on information technology also puts your company at risk for exposure known as “cyber risk.”

  • When Hackers Create Personal Liability for Directors [ Article]

    As numerous media sources have reported, Target was one of the latest retailers whose customers’ credit card records have been stolen by hackers. As a result, the company is the subject of regulatory investigations and civil actions. A startling twist, however, are the lawsuits instituted against the individuals serving on Target’s board of directors.

Arthur J. Gallagher & Co. maintains an EPL loss database in order to model risk in terms of both single plaintiff exposure and discrimination class-action claims. As the potential size of EPL claims are directly related to the size and diversity of the insured organization, our loss model has proven to be quite effective as it relates exposure to the number of employees, type and mix of employees, and location of operations. We further provide multidimensional EPL benchmarking reports as well as a review of historical claims with EPL losses in excess of $1 million, taken from our extensive database.

  • Market Conditions Update: 2015 Employment Practices Liability [ Market Report]

    The Gallagher Market Conditions Update: 2015 Employment Practices Liability report offers an evaluation of the 2014 EPL market. It summarizes the situation as a relatively static claim environment and similarly stable EPL insurance market. While a significant increase in EEOC staffing and some increased scrutiny into certain areas might suggest an increase in EEOC activity for 2015, the update indicates a continuing stable market forecast with flat to modest increases (zero - five percent) for most insureds.

We also use three evaluations in order to suggest minimum limits of liability for crime exposure. These are:

  • A peer analysis using industry-leading third-party databases.
  • An exposure index developed by the Surety Association of America (SAA) in cooperation with the American Institute of Accountants.
  • An analysis of our client’s required bond limits as dictated under the Employee Retirement Income Security Act of 1974 (ERISA).
  • Market Conditions Update: 2015 Commercial Crime and Financial Institution Bond [ Market Report]

    The Gallagher Market Conditions Update: 2015 Commercial Crime and Financial Institution Bond report provides a 2014 recap and 2015 forecast for the Commercial Crime and Financial Institution (FI) Bond market. It notes that underwriters enjoyed fairly stable market conditions in 2014. Crime renewal premiums were steady while FI Bond premiums increased at only a modest pace.

  • Market Conditions Update: 2015 Fiduciary Liability [ Market Report]

    Pension and Welfare Plan Fiduciary Liability renewals were stable in 2014, and this coverage line continues to be the least affected within the Management Liability solutions. With recent claims trends directly affecting the insurance market, this Gallagher Management Liability Market Update: 2015 Fiduciary Liability report takes a look at some key claims statistics drawn from Advisen Ltd.’s Master Significant Cases and Actions Database (MSCAd).

In these unprecedented times of financial instability, insureds are forced to revisit their counterparty risk in all aspects of their business. Risk associated with your insurance company partners is no exception. Traditionally, insurance professionals have relied on A.M. Best Ratings to advise their clients of the financial strength of carriers, and A.M. Best’s ratings remain an essential factor in any insurance placement decision.

However, many risk managers are seeking additional insights to enhance their decision making process. In response to a growing demand, we developed a financial security model to evaluate insurance companies. The model includes an A.M. Best analysis but also highlights factors such as policyholder surplus, combined ratios and Credit Default Swap spreads as possible leading indicators of carrier instability.

  • Market Conditions Update: 2015 Insurance Company Professional Liability (ICPL) [ Market Report]

    The Gallagher Market Conditions Update: 2015 Insurance Company Professional Liability (ICPL) Insurance report provides an overview on key ICPL issues in 2014 particularly in that primary insurers proved to be fairly disciplined in their underwriting. Increases varied based on the risk characteristics, but for accounts with moderate to low-risk profiles, year-over-year increases were generally in a range from 0% to 10%. So what is on the horizon for ICPL in 2015?

We perform a Directors & Officers Liability (D&O) Limits Analysis, using three distinct analytics to recommend an appropriate range of limits. These are:

  • A peer analysis or benchmarking of limits using unbiased third-party databases.
  • Our proprietary statistical loss model (developed by Dr. Norton), which incorporates metrics used by the plaintiff’s bar to model loss values associated with class-action securities litigation related to allegations of inadequate or inaccurate disclosure. The loss models assumptions are routinely updated from knowledgeable sources to ensure relevancy.
  • A review of historical D&O claims with losses in excess of $10 million, and an evaluation of the potential impact of such losses to your company.

We then synthesize the results to produce a recommended level of limits. This will provide your board with the information needed to assess your management liability risks and decide how to most appropriately cover them.