Please join us in welcoming William Dalton to the AEGIS Board of Directors. Mr. Dalton brings years of experience from the international banking, investments and insurance industries to the AEGIS board. Currently, Bill serves as an executive director of HSBC Holdings plc and the Global Head of Personal Financial Services. This division of HSBC provides a full range of banking, insurance and other products to 40,000 customers in 42 countries. Until January of this year, he was Chief Executive of HSBC plc. We know Bill’s considerable financial services expertise will be a great asset to AEGIS.
We’re pleased to report that the new AEGIS D&O form has been finalized and is now available for your review. Previously, we had been using essentially the old DOLI form that was drafted nearly 20 years ago before the utility industry experienced the competitive threats, partial deregulation and unregulated business expansion of the late 80’s and 90’s. For years we’ve been modifying this form extensively through cumbersome manuscripted endorsements to suit current conditions.
Two years ago we began to work with the RMAC to make changes to the old form that would make this process easier. A special task force of RMAC members met with our underwriters, claims professionals and legal counsel to help clarify the intent of the coverage and to rewrite certain sections to obviate the need for so many endorsements. As they concluded their work, we discussed their findings with other experts from the brokerage and legal communities and made additional changes. In the management report at the policyholders’ conference last year, we explained the need for the new form and announced that we would begin using it sometime in 2004. A few months ago we began to test the new form in actual renewals and these renewal discussions with a broader group of members and brokers led us to make further modifications.
Finally, after all of this effort, we now believe the new form is ready for publication and general use. If you click on the links in this email, you will be led to three documents relating to the new D&O form: (1) a memo from Gil Gould and Bill Cullen discussing the need for the new form and how we intend to use it, (2) a list of “ Coverage Highlights ” explaining the changes from the old form and (3) after entering your AEGIS portal user name and password, the new D&O form itself. We hope you will take the time to read these documents carefully and discuss them with your AEGIS underwriter at or prior to the Policyholders’ Conference in San Diego at the end of July.
One of the many added benefits of AEGIS membership is access to the operational assessment and problem-solving services provided at no charge by our Loss Control Division. This group is unique among underwriting organizations. It’s staffed with engineers and loss control professionals who are former utility engineers and operating professionals − which means their expertise in energy operations is as specialized as the energy underwriting and energy claims expertise is in our other divisions.
AEGIS member companies enjoy these loss control products and services as a value-added benefit of their membership: risk assessments including property risk assessments that complement our property underwriting capabilities; the Focused Services program which provides the services of an AEGIS loss control specialist for up to 10 free days; training and safety awareness programs; and a number of valuable loss control publications and guides.