1. THE FUTURE FOR EMPLOYERS’ LIABILITY Phil Bell Royal and SunAlliance

2. Overview of the Liability market 1990-2000

3. The current market Where we are now How did we get there – Over capacity – Law Reform – CFA – Market expertise and practice – Loss of capital – Equity markets

4. What have been the implications? Reduced capacity Premiums Illegal trading Capital The DWP and OFT reports

5. The problems with EL The long tail Pricing Reserving Legal uncertainty The hindsight factor Legal costs Risk selection 1. For underwriters

6. The problems with EL 1. For underwriters Cont’d Risk Management - Proactive risk management - All risk assessments have been undertaken - All employees are properly trained - Provision of all the necessary protective clothing or equipment - Proper records are kept of everything that has been done

7. The problems with EL 2. FOR EMPLOYEES

8. The problems with EL 3. FOR EMPLOYERS

9. Why now? Nothing new Deafness in the 1970s RSI in the 1980s VWF and stress in the 1990s Today it is asbestos ….. again What next?

10. Is EL viable?

11. What is required? Separate funding for accident claims and industrial disease claims Accident claims dealt with in existing way Industrial disease claims to be funded separately

12. Is PL viable?