Marsh, the world’s leading insurance broker and risk advisor, announced several enhancements to its directors and officers liability (D&O) insurance offerings today, potentially allowing more clients to benefit from superior environmental, social, and governance (ESG) frameworks. The move indicates that D&O underwriters are more willing to recognize organizations with strong ESG risk management as better… Continue reading Marsh: More D&O Insurers Willing to Offer Better Coverage to Businesses with Robust ESG Frameworks
Tag: Directors & Officers Liability insurance
U.S. D&O Insurers Post Underwriting Losses Despite Record Premiums
Underwriting losses are expected to continue over the near term for the U.S. directors & officers (D&O) liability insurance segment despite a 67% cumulative increase in market premiums over the past two years, Fitch Ratings says. The market has been disrupted by a confluence of challenging economic, regulatory, legal, investment and social factors since the… Continue reading U.S. D&O Insurers Post Underwriting Losses Despite Record Premiums
D&O Insurance Rates Surge on COVID-19 Litigation Fears
Premiums for directors’ and officers’ liability insurance surged in the second quarter, according to broker Marsh, as insurance underwriters fear the coronavirus pandemic will lead to hefty litigation claims. Premiums for directors’ liability insurance, known as D&O, in Britain rose by more than 100%, while in the United States, rates for public companies were up… Continue reading D&O Insurance Rates Surge on COVID-19 Litigation Fears
D&O Insurance Renewal Trends in 2020: COVID-19 and Other Factors
The COVID-19 pandemic has created unprecedented challenges for policyholders renewing all lines of property and casualty insurance. Directors and Officers Liability (D&O) renewals were already difficult at the start of the year, as the market has been hardening since 2018 due to an increase in claim frequency and severity. These developments have caused insurance carriers… Continue reading D&O Insurance Renewal Trends in 2020: COVID-19 and Other Factors
Companies Are Paying a Lot More to Insure their Directors and Officers
Many companies in the U.S. and Australia are paying steeply higher rates for insurance that covers costs for directors and top executives when they or the company are sued. Driving the increases is the rise in shareholder litigation, both in the number of cases and size of jury awards and settlements, brokers said. Another connected… Continue reading Companies Are Paying a Lot More to Insure their Directors and Officers
Musk’s Maverick Lawsuit Shield Is Sign of Skyrocketing D&O Rates
When Elon Musk said in April he was dropping the insurance policy that protects Tesla Inc.’s board from shareholder lawsuits, it got Skip McBride’s attention. To McBride, who used to manage law firm Bracewell LLP’s malpractice exposure, Musk’s decision to insure Tesla’s directors out of his own pocket was a first—and a risky move. But… Continue reading Musk’s Maverick Lawsuit Shield Is Sign of Skyrocketing D&O Rates
Insurers Fret as Directors & Officers Face Coronavirus Legal Claims
Insurers are increasingly worried about shareholders, employees or customers bringing coronavirus-related claims against company executives and are considering excluding the virus from policies which protect the bosses, industry sources say. Two cases have been filed in the United States in recent weeks accusing companies of making misleading statements about the coronavirus or their coronavirus plans… Continue reading Insurers Fret as Directors & Officers Face Coronavirus Legal Claims
Expanding Risk Exposures Present D&O Insurers with Significant New Challenges: AM Best
The profitability of directors and officers (D&O) insurance underwriting is likely to remain under pressure in the near term, due to factors that include multiple years of inadequate pricing and widening risk exposures, according to a new AM Best market segment report. The Best’s Market Segment Report, titled, “Expanding Risk Exposures Present D&O Insurers with… Continue reading Expanding Risk Exposures Present D&O Insurers with Significant New Challenges: AM Best
SEC Proposes Amending Corporate Disclosure Rules
The U.S. Securities and Exchange Commission is proposing changes to rules governing how companies disclose financial information—the latest move by the regulator to give executives more flexibility in what they share with investors. The proposal, which has been released for public comment over the next 60 days, reflects the regulator’s general shift from strict guidance… Continue reading SEC Proposes Amending Corporate Disclosure Rules
D&O Rates Improve As Carriers Push to Restore Profitability: Fitch Report
Premium pricing has improved significantly for directors and officers (D&O) liability in 2019 as carriers work to restore profitability, according to analysts at Fitch Ratings. Fitch noted that D&O liability business has seen several years of weaker performance, driven by flat premium growth and less favourable claims trends in a shifting tort environment. However, reductions… Continue reading D&O Rates Improve As Carriers Push to Restore Profitability: Fitch Report