Q| You've served in various capacities in managementliability and professional lines underwriting areas for more than25 years. How has this line evolved in that time in terms ofexposures, and what are some of the greatest exposures thatexecutives need to be insured against these days?

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The pace of change has been remarkable; 60% of the economy isrepresented by the service sector. Further still, so much of the“new” economy is information based and revolves around data, thederivation and dissemination of content. “Services” and “service”providers are not only proliferating at an exponential pace buttheir business models are entirely transformed because theirservices are increasingly delivered by technology.

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The convergence of the traditional errors & exposures ofservice providers and their technological enablement–includingcontent dissemination, media liability, technology errors &omissions, privacy violations, network security breaches andintellectual property rights disputes coupled with the rapid andlong term secular growth trends in these sectors of the economyamplifies existing risks and creates new exposures.

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The risks and exposures facing customers are changing. Thiscreates challenge for underwriters to identify and effectivelyunderwrite and price these exposures. This complex and morphingenvironment is the jumping-off point for product innovation asleading underwriters stay current and relevant as solutionproviders in the customers in the risk mitigation and risk transferstrategies.

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Q| How would you characterize the current rateenvironment for D&O coverage? What are some of the­contributing factors to where rates are now, and do you see that­changing in 2014?

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The D&O market place is not monolithic, and the rateenvironment looking forward to 2014 varies from segment to segmentwithin the market. For example, the private-company managementliability segment has experienced rate increases throughout 2012and 2013 driven by the increased numbers of private companybankruptcies post global financial crisis. The depth and length ofthe recession also saw a major spike in employment practices claimsdue to business failures, reductions in force together withexpanded liabilities for employers (e.g. Wage & Hour claimsarising from FLSA).

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In the financial institution segment, the large scaleoperational failures in the global financial crisis as systemicevents such as the LIBOR scandal have led to a dislocated market,with reduced capacity and a steady diet of rate increases.

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By contrast, the commercial public company segment, especiallyin the excess attachments and “Side A” classes, has enjoyed arelatively benign loss experience, is oversubscribed with capacityand continues to see a highly competitive price environment.

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Q| Your bachelor's degrees are in human physiology andpolitical science (from McGill University in Montreal). What drewyou to a career in insurance, and what motivates younow?

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I was very fortunate to graduate and join the Chubb Corporation,one of the great franchises in our industry. Chubb is recognizedfor its commitment to learning and development and has a superbtrack record of underwriting excellence. I loved the vocation ofunderwriting from the start.

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Over the course of my career I was privileged to apprentice withsome great teachers, mentors and leaders across the industry that“paid it forward” with me. My passion for the craft of underwritingmotivates me every day. QBE enjoys an unrivaled position of marketleadership in the management liability and professional lines inAustralia, throughout Asia, in Lloyd's and across Europe. At QBENorth America we will build these businesses in the deepest pool ofopportunity in the global market to reinforce our global leadershipin these lines of business.

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