Mutual Funds - An Updated Underwriting Approach
Mutual Funds - An Updated Underwriting Approach
Mutual Funds - An Updated Underwriting Approach
Underwriting Approach
Shelia January
Senior Vice President
Zurich North America Specialties
June 7, 2004
Presentation Agenda
• Historic Context & Risk Issues
• Current Market Conditions
• Risk Characteristics
• Policy Structure
• Underwriting Information
• Current Regulatory/Litigation Climate
• Pricing Considerations
• Insurance Marketplace
• Summary
Historic Context & Risk Issues
• Earliest Policies were written in response to insureds’ coverage
needs as presented to the insurance industry
• Prior to 1988, limited offerings from the commercial insurance
marketplace
• ICI Mutual began offering coverage in 1988
• 1988-1990 - more insurers began offering insurance products
• 1986-1990 saw enormous growth in mutual fund assets from
<$500mm to >$1,000mm; $6,900mm by y/e 2000
Historic Context & Risk Issues, cont.