Our recent meetings with members and brokers in Milwaukee and Houston were very well attended and provided valuable opportunities for all to share thoughts on current market conditions, ERM, global warming and alternative energy. We were happy to hear that members in both areas are generally very pleased with our service and we are planning four more regional meetings at locations throughout the country in 2008.
We were pleased to learn that on Wednesday, December 26, 2007, President Bush signed into law H.R. 2671, the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA).
The law extends the program for seven years, eliminates the distinction between foreign and domestic acts of terrorism, maintains the current federal share (85%) and insurer co-pay (15%) above the insurer retention, hardens the cap on insurer aggregate liability at $100 billion and requires the express disclosure of same to policyholders. As is the case currently, it does not require insurers to offer coverage for nuclear, biological, chemical and radiological risks (NBCR). In addition, the bill maintains the current program trigger of $100 million and the mandatory recoupment layer of $27.5 billion for federal payments, specifies recoupment timeframes, and requires that 133% of federal outlays be recovered through policyholder surcharges. Finally, it provides for several studies of insurance availability/affordability for NBCR risks and for terrorism market capacity.
AEGIS will continue providing terrorism coverage for the membership as we have since the original bill was first enacted in 2002.
We constantly strive to improve the timeliness and accuracy of the quotes, binders, policies, invoices and claims correspondence we provide to you.
Throughout this year and last, 100% of all core policies were issued in 30 days or less and 99% were issued in 20 days or less. In 2007, all property policies were issued within 30 days of receipt of approved wording. By year end, we expect that each of the more 1,200 policies written through our New Jersey facility will have been issued quickly and accurately.
In the claims area, we expect to have approximately 1,600 new claims reported by the end of 2007, which is on par with the 1,590 new claims reported in 2006. Between new claims and open claims, we're helping members manage between 4,700 and 4,900 losses at any given time.
For those unfamiliar with the claims process, we confirm receipt of the Notice of Circumstance or Claim on the day we receive it. The matter is then reviewed and evaluated in conjunction with the related policy(ies) and endorsements. For Excess Liability, Excess Workers' Comp, D&O, Fiduciary & Employee Benefit and Professional Liability losses, an AEGIS claims professional is to respond within 10 business days, following assignment of the claim. In the case of property losses, we work with members to begin the adjustment process immediately and recommend actions to prevent further damages before the evaluation process even begins. Regardless of the type of loss, we help members manage their claims in a collaborative, mutually supportive manner that sets us apart from the commercial insurance industry.
If you have any questions about the processing of underwriting materials, please contact Bill Cullen, Senior Vice President – Underwriting by e-mail or at 201.508.2781. If you have any questions about the claims process, please contact Bruce Roznowski, Senior Vice President – Claims by e-mail or at 201.508.2653 or refer to the Claims Procedure Guide posted on our website.
Please register now for the first of the 2008 Claims Roundtables – Success through Utilizing AEGIS Gas and Electric Litigation Services – which will be held on February 7 in East Rutherford and on February 21 in Las Vegas.
The seminar will focus on how the AEGIS litigation services can help member companies manage major gas and electric incidents. The panels will discuss their experiences with major incidents, coordination and team-building with counsel, implementation of internal and external procedures to mitigate risk, and management of the resulting suits and issues.
Later in the year, the Roundtable series will cover Technology in the Courtroom – High-Tech Litigation Support and Winning at Mediation – Negotiation and Settlement Techniques.
For more information about the AEGIS Roundtable program, please contact Jeff Schupack by e-mail or by phone at 201.508.2658. As always, you're welcome to attend AEGIS Claims Roundtables in person or by videoconference, and Continuing Legal Education (CLE) credits are offered.
Please mark your calendars now for the 2008 AEGIS Policyholders’ Conference which will be held July 28 through July 31 at the Hyatt Regency San Francisco.
Our annual conference is an important opportunity to share your thoughts with us, network with your peers, and learn about new developments in the industry and at AEGIS. More information will be posted on the website as it becomes available and registration will open in May.
We also hope you'll join us for the 2008 AEGIS Claims Seminar which will be held October 27 to October 29 at the Hyatt Huntington Beach in California.
We'll cover gas and electric case studies, as well as other issues that are germane to claims professionals and litigators for the utility industry. The seminar will be eligible for Continuing Legal Education (CLE) credits. Registration information and agenda details will be available when we get closer to the date.
For more information, please contact Brian Ekdahl by e-mail or phone at 201.508.2643.
We recently added a new section to our website that focuses on Climate Change. In it, you will find information about recent developments in the law related to climate change as well as a number of useful articles, case documents, reports and other information. One of the documents posted is the Climate Change Bulletin which provides biweekly updates on climate change news you can use in your day-to-day work.
If you have any questions about the information in the Climate Change Bulletin or if you would like to know more about the new AEGIS Climate Change Litigation Service, please contact Jeff Schupack by e-mail or phone at 201.508.2658.