Fiduciary Similar to Fall 2024, rates are projected to remain flat to -5%. Underwriters are focusing on renewing at flat rates to ensure profitability in this line of coverage. This approach is essential for maintaining market stability and providing consistent coverage options for policyholders.
Filings Filings were down in the first half of 2024 but increased in the latter half of the year.
Excessive Fees › As discussed in prior reports, excessive fees remain the central underwriting concern with additional issues emerging due to the complexity of ERISA law. › Litigation remains robust and is now extending into health and welfare plans, coupled with forfeiture claims alleging that plan sponsors who use forfeitures to offset future employer matches do not benefit plan participants. Trump Administration Impacts › Fiduciary Rule Regulatory Freeze: The freeze on the implementation of new rules, including the 2024 Retirement Security Rule, has created uncertainty for fiduciaries and insurers. This rule aimed to define investment advice fiduciaries under ERISA, but its delayed implementation increases the risk of litigation by plan participants. › Executive Orders on DEI: Recent executive orders targeting diversity, equity and inclusion (DEI) initiatives may impact fiduciary responsibilities. Investments in funds that prioritize ESG (Environmental, Social and Governance) principles, including DEI, might be scrutinized for potentially violating fiduciary duties.
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