D&O demand 'on the rise' - Directors' and Officers' Liability Insurance

10/11/2009

Written by Neil Pointon

Demand for Directors' and Officers' (D&O) insurance is growing at a significant pace throughout Europe, new research indicates.

Indeed, findings from Advisen also show that premiums for such cover are rapidly increasing as disgruntled shareholders look to sue directors in an effort to recoup money lost.

Meanwhile, changes to legislation aimed at providing greater transparency and providing more protection to shareholders were deemed to have exposed directors to greater risks.

"Underwriters clearly are concerned about the heightened exposure to claims, but at the same time the threat of regulatory investigations and shareholder suits is creating unprecedented demand for D&O insurance," Dave Bradford, executive vice-president of Advisen, states.

He points out that the majority of the largest firms across the continent now have D&O coverage in place, as more mid-sized companies also consider this form of insurance as they begin to recognise "that they too are potential litigation targets".

Consequently, premium volumes - both in terms of companies looking to purchase D&O and hardening rates - are expected to see double-digit growth over the next few years.

Such comments come as Robin Farquhar, head of specialist lines for Aviva, pointed out in September that directors are finding themselves under further pressures as an increasing number of businesses close and Britain becomes a "more litigious society".

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PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2009 Adfero Ltd.

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