Aon | Financial Services Group
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Fiduciary Liability: Excessive Fee Risk discusses excessive fee litigation trends and some best practices for Risk and Benefit Plan managers.
Excessive fee litigation cases in retirement plans have risen dramatically in frequency and severity putting pressure on the Fiduciary Liability insurance market. Since 2005, excessive fee litigation has grown significantly with plaintiffs’ firms filing more than 300 lawsuits.
The cases generally focus on investment management or administration fees for 401(k) and 403(b) plans and have led to a considerable firming of the Fiduciary Liability insurance marketplace with decreases in capacity, significant increases in pricing and retentions and tightened underwriting criteria.
The full report can be accessed here.
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