Aon | Professional Services Practice
Release Date: March 2022
Fiduciary Liability and the Growing Risk of Excessive Fee Litigation
The Financial Services Group at Aon discusses excessive fee litigation trends and some best practices for Risk and Benefit Plan managers in 2022’s Fiduciary Liability: Excessive Fee Risk.
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.
More information about the Property & Casualty risks faced by professional service firms is available on the Professional Services Practice at Aon’s Property & Casualty page.
The report can also be discussed with Financial Services Group professionals Timothy Fletcher and Kristin Kraeger and with Retirement Solutions expert Rick Jones.
CEO, Financial Services Group
Managing Director, Financial Services Group
Senior Partner -- National Retirement Practices