QOTW: Fiduciary Insurance Increases

At a recent committee meeting, a few plan sponsors noted that the renewal process for fiduciary liability insurance was more comprehensive this year, with many new questions, including questions on excessive plan fees, and rates were going up. We asked ICYMI readers this week if that was their experience as well. A few of you noted that it was, but a plurality has noted no change in the fiduciary liability insurance renewal process and no increase in rates. ARA’s chief content officer Nevin Adams wrote a recent article on the topic, with some guidance for plan sponsors. It seems that insurance companies are spurred by the increase in lawsuits regarding plan fees and taking a more in depth approach to assessing liability risk. This will be a trend to watch, and prepare for, in the future.

Comments when asked if they were experiencing a more in-depth questionnaire or increase in rates this year:

• Hasn't been my experience. Shouldn't premiums decrease if our revenue goes down or not necessarily?
• Information was requested we had to get from our TPA.  Premiums went up slightly.
• No it is not.
• No, we have not been asked more detailed questions at this time.
• No, we've been under a 2 year rate guarantee.
• No.  Other than the same application that we have filed out over the years, no additional questions have been asked.
• Not so far.
• Not yet.
   
• Our Fiduciary premium decreased slightly from 2020 to 2021.  However, we are expecting to see a bump in premium for the 2022 renewal, based on our initial meeting with the brokers.  We won’t see any actual premiums for 2022 until late November
• We have not received increased scrutiny in the current renewal, but we did get notification of rate increases.
• Yes
• Yes it was. This year for our renewal they include a comprehensive Excessive Fee Questionnaire that was a new part of the process.
• Yes they did ask additional questions for the renewal process.