Analysis

Businesses set to shun D&O cover due to sky-high premiums

By 2021-01-19T11:34:00

increasing prices

As the coronavirus pandemic puts directors’ and officers’ premiums into overdrive, Insurance Times takes a look at potential claims risks and trends in this section of the market

Escalating premiums for directors’ and officers’ (D&O) insurance could see firms refuse to purchase or reduce this cover, leaving senior professionals personally on the hook for any arising claims.

Outlining this potential problem, James Wickes, partner at law firm RPC, explained: “After years of soft market conditions, insurers have increased D&O premiums to bring pricing up to a point that more accurately reflects the increased risk environment for D&Os. The challenge for the market will be reaching a price point that reflects the risk, but which is also affordable for businesses to pay.”

Read more…

You need to register to continue reading the rest of this article and more for free.
(If you’re already registered, please sign in here.)

REGISTER NOW FOR FREE

We’re glad you’ve chosen Insurance Times as your source for industry news and hope you’ve been enjoying reading articles from our award-winning team of journalists.

Gain access to more of our exclusive, breaking stories, interviews and news analysis as it happens. Registering is quick, easy, free, and will also have the additional benefits:

  • Uncover Secrets: Dive deep with exclusive annual reports, fueled by expert insights.
  • News That Matters: Award-winning coverage & analysis, delivered to your inbox.
  • Stay Ahead, Your Way: Daily or weekly - choose your news rhythm.
  • Own Your Learning: Curate your knowledge with a personalized library.

Register for FREE now and Keep Reading

Stay on top of the insurance game with our subscription! Get unlimited access to over 80,000 articles, in-depth analysis, exclusive reports by industry experts, and our Five-Star rating system to compare companies and find the best fit for your business needs - view subscription options.