Lloyd's points to rise in PI and D&O insurance claims

24/03/2009

A rising number of Professional Indemnity (PI) and Directors' and Officers' (D&O) insurance claims are expected to be made over the coming months.

In its annual report, Lloyd's of London reports that as turmoil in the wider economic markets continues, aggrieved investors will increasingly look to target company directors in an effort to claw back any money they have lost.

"We anticipate that plaintiffs will bring suits against any targets that they consider have the resources to recompense them and the insurance coverage available will be a key consideration," a statement by Lloyd's says.

The organisation points out this will incorporate Directors' & Officers' insurance and Errors & Omissions (PI) insurance for financial advisers and fiscal institutions.

Figures released by Lloyd's also reveal that premiums written rose by ten per cent over the course of last year to stand at £17.9 billion.

Meanwhile, a recent Financial Times article reveals that a number of high-profile financial scandals - including the collapse of Bear Stearns - over the past year are set to drive the cost of PI insurance classes being filed against asset managers.

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