Litigation leads to hardening fiduciary liability market
The once "sleepy" trust market can no longer be called such as lawsuits for excessive fee claims continue to grow, insurance managers say. The escrow room has recently taken off " an abrupt and sudden turnaround "due to these allegations, which are class action lawsuits against defined contribution plans related to allegations that records and other charges imposed by them are unnecessary or inappropriate," said Alison Martin, Pittsburgh-based escrow product manager and senior vice president at Chubb Ltd. She spoke Thursday during a session of the Professional Liability Underwriting Society's annual directors and officers symposium in Minneapolis, which was conducted virtually. While these claims are not new, they were manageable and filed at the rate of about 20 per year until they started in late 2019 when "we saw a significant change" and in 2020 more than 90 were filed against plan sponsors. Said Martin. It also expanded who is addres...