Members of the Risk Management and Insurance Society had the opportunity to learn more about management liability insurance from UW-Madison alum Sam Boebel on October 24. Boebel currently works at Zurich Insurance Group underwriting financial lines.
Over some delicious Ian’s Pizza, students learned about directors’ and officers’ liability, employment practices liability, and fiduciary liability. These insurance policies cover perils such as bankruptcies, employee class action suits, and stock drops. Boebel delivered insight into all of these areas, while also providing real-world case scenarios in which students determined who would be covered under certain policies. He also informed us that unlike other insurance policies such as automobile or home, there is no algorithm to predict where the losses are going to come from because there aren’t as many data points in this line. This means that a lot of research about the company needs to be conducted beforehand to successfully price their policies.
Because of the uniqueness of management liability insurance, Boebel made sure to emphasize the reasons one may be interested in pursuing a career in this field. He mentioned the constant evolution of risk dynamics within companies as well as the stimulating nature of the day-to-day work as well. The combination of these two aspects make for a job that avoids repetition and allows one to problem solve every day. In addition, Boebel explained the wealth of exposure an underwriter in this area has with different companies and their senior management teams. This allows one to gain further knowledge about different industries, making for a job in which one is constantly learning.
All in all, this speaker provided students not only with a base knowledge of management liability and how insurance companies cover it, but also the benefits of working in such an ever-changing area.