The hot topics facing the Bermuda insurance market are set to be talked about by legal experts from the US and Europe at Wednesday?s second annual one-day seminar from global law firm Sedgwick, Detert, Moran & Arnold Llp.

Bermudian London-based Sedgwick lawyer Mark Chudleigh, who is coordinating this year?s event, said the session is geared to underwriters and claims experts working in the Island?s re/insurance sector.

He said it is hope that the event ? which is to be held from 2:30 to 5:30 p.m. on Wednesday at the Bermuda Underwater Exploration Institute ? will attract about 100 delegates from the sector.

The industry event ? which is at no charge, but does require pre-registration ? was first staged last year but got blown slightly off course when its original September date fell just after devastating Hurricane Fabian?s hit on the Island.

It was eventually held in December ? which Mr. Chudleigh conceded may not have been the best timing with re/insurers working around the clock at that time on January 1 renewal business ? and attracted about 60 people.

Sedgwick ? reportedly the only law firm to hold such an event on this scale in Bermuda ? has lined up legal experts to speak to a host of issues including the impact on brokers following New York Attorney General Eliot Spitzer turning his spotlight on the placement service agreements (PSAs) and the perception of ?big business? abuses when insurers make these reward type payments to brokers for placing business with them.

The event?s seven speakers come from Sedgwick?s New York, Chicago, San Francisco, Dallas and Zurich offices.

Mr. Chudleigh, speaking with The Royal Gazette from London said those speaking to the issues work specifically in those areas and are ideally placed because they are dealing directly with claims and litigation issues that arise from claims disputes.

In addition, to the latest developments in the insurance brokerage market, another session will look at several recent decisions taken by the US Supreme Court directed at curbing excessive punitive damage awards in American courts.

Two cases that will be analysed are the BMW vs. Gore decision where the consumer was awarded $4 million in punitive damages after a respray of his automobile and State Farm vs. Campbell, an ?insurance bad faith claim? where the jury awarded the insured motorist $145 million in punitive damages.

Mr. Chudleigh said that the US Supreme Court is trying to control what it regards as grossly excessive punitive damage awards, and that courts across the nation are taking note.

Punitive damages are an issue that is of great concern to the insurance industry, having been left countless times to largely foot the large bill left with a corporation after a punitive damages award.

Also to be discussed is ?Wall Street on Trial?: an analysis of legal developments arising out of financial settlements made in the last three years following a spate of high-profile corporate scandals such as WorldCom, Enron. In addition ?laddering? and mutual fund ?market timing? scandals will be touched on.

Another topic being featured in one of the Sedgwick sessions will be health care and the US medical liability crisis that has resulted in a push for tort reform.

The crisis has escalated to the point, Mr. Chudleigh said that, doctors in the US are having to each individually pay annually in the order of $200,000 for medical liability premiums.

The end result has been a capacity crisis, which has been in part filled in recent years by Bermuda carriers. The speaker for that session will look at attempts in the past and proposed attempts to reform US tort laws. Another session ?Toxic torts? will look at the emerging issue of a surge in mould related law suits. Mr. Chudleigh said that although the view is that this is unlikely to be another ?asbestos? (after insurers? have seen their bottom line hit in recent years by the need to repeatedly boost reserve levels for future asbestos claims) but a significant problem that sector is keeping a close eye on. Also coming under the Sedgwick magnifying glass will the increase in employment litigation, and specifically, employment class action claims, including the highly-publicised Wal-Mart class action involving 1.5 million employees seeking in excess of $1 billion in damages. Lastly, the increasingly ?hot? issue of directors & officers (D&O) liability will be looked at. A continuing rise in the number and severity of D&O claims, both in the US and in Europe, will be looked at and what insurers are doing to meet such claims. Leading D&O lawyer Joe Smick (from Sedgwick?s New York office) will go into some depth on ongoing attempts by D&O insurers to rescind policies issued to such companies as Tyco, Enron and WorldCom.

Erik Stenberg, an American Sedgwick lawyer naturalised in Switzerland, will look at the European D&O explosion after a string of recent financial debacles.

Mr. Chudleigh said that Europe is starting to see a US-style explosion of D&O cases after recent corporate meltdowns at Italy?s Parmelat, France?s Vivendi Universal, Swiss Air, Germany?s Daimler Chrysler and Equitable Life in UK.

The event is free to representatives of the Bermuda insurance market but only by prior e-mail request to tamarwidemansdma.com.

Sedgwick?s insurance practice ? with 170 lawyers on staff ? is organised into the following practice groups: casualty coverage, D&O, extracontractual/commercial insurance litigation, fidelity, international counselling and arbitration, life, health & disability, managed care, policy drafting, professional liability, property coverage, reinsurance and surety.

The firm has long been a provider of legal services to the Bermuda market.