1. “The Vue”: Managing Rising Defense & E-Discovery Costs

2. The V ue

3. Personalities HOST: Jennifer Rothstein, Esq., JD, Insurance Discovery Specialist, ACT Litigation Services, Inc. SPECIAL GUESTS: Andrew Forstenzer, Esq., Executive Vice President & General Counsel, Crump Group, Inc. Tony Glenn, MBA, Senior Vice President, U.S. Casualty and Specialty Casualty Claims, Liberty International Underwriters Bruce Meckler, Esq., Partner, Meckler Bulger Tilson Marick & Pearson LLP Patrick O’Doherty, RPLU, Vice President & Managing Director, Excess & Surplus Lines, ProAssurance Companies

4. Hot Topics Defense costs are increasing and can erode policy limits Factors contributing to increase:  Increase in litigation (D&O class actions; employment litigation; coverage litigation)  Expert witness costs  Discovery costs  Exponential growth of electronic documents (types of cases with largest volumes of documents) Underwriting the risks Questions from the audience

5. Litigation Trends Bankruptcy, class actions, and regulatory actions are up – especially in the financial sector  40% of respondents have seen an increase in wage & hour, multi-plaintiff labor and employment since 2008 Effects of the economy:  80% of companies surveyed have seen litigation budgets stay the same or increased since 2008 Source: Fulbright’s 6 th Annual Litigation Trends Survey Report

6. Expert witness costs Vary by discipline Vary by venue Creative solutions

7. Discovery v. e-Discovery Discovery - “the pre-trial phase of a lawsuit in which each party can request relevant evidentiary information through depositions, interrogatories, requests for admissions and requests for documents.” Electronic discovery - any process in which electronic data is sought, located, secured, and searched with the intent of using it as evidence in a civil or criminal case Examples of electronic data What makes electronic data different? Types of litigation generating highest costs Large carriers have cited 45% to 75% of defense costs for D&O claims now come from e-Discovery

8. e-Discovery Costs Types of litigation generating highest costs 93% of all corporate documents are created electronically Predictability Hidden costs Techniques to mitigate or manage Can anyone control this? Who? Source: University of California Berkeley, 1999

9. e-Discovery Trends Will e-Discovery affect lawsuits settling versus going to trial? Risk management measures Effective and defensive management of costs and risks

10. Controlling the Costs Improved and earlier claims notification by insured to carrier Increased involvement by claims professionals in eDiscovery cost and process oversight Greater use of alternative dispute resolution Ongoing review of document retention policies Improved discovery readiness Alternative billing practices Outsourced review

11. Underwriting The Risks Can these exposures be effectively underwritten? Identifying risks with greater than average vulnerabilities Changes needed in risk selection process? Impact to rate making – when does the other shoe drop?

12. Questions from the audience?

13. Follow the “Vue”… Jennifer Rothstein – jrothstein@actlit.comjrothstein@actlit.com Andrew Forstenzer – andrew.forstenzer@crumpins.comandrew.forstenzer@crumpins.com Tony Glenn – tony.glenn@libertyiu.comtony.glenn@libertyiu.com Bruce Meckler – bruce.meckler@mbtlaw.combruce.meckler@mbtlaw.com Patrick O’Doherty – podoherty@proassurance.compodoherty@proassurance.com