Friday, 7 March 2008

Report from a Subprime Conference

Lexis-Nexis subsidiary Mealey's ran a conference on litigation from subprime yesterday. Advisen's Anne Wallace attended and reported:

It looks like we are facing a bigger nightmare than first thought. Less
D&O risk, but a larger E&O and Fiduciary Liability and an additional
EPLI with regards to whistleblower charges.

Advisen's estimate that subprime will be a $3.6b D&O event just from securities class action suits (see here) was discussed as were the worst-case estimates from Bear Stearns and Lehman Brothers (who can't track the insured amount).

Look for Advisen to announce a webinar series on the broadening underlying exposures (beyond subprime to other credit markets) and where litigation will go and how this will impact on the commercial lines insurance industry. Meanwhile you can follow our coverage on Front Page News (subscribe here).

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