Insurers facing billion-pound bill from Libor D&O cases

The Libor rate fixing scandal could result in billions of pounds worth of losses for insurers, according to an industry expert.

Insurers may be forced to pay out big figure sums on Directors and Officers (D&O) cover, which protects firms against shareholders suing for negligence.

D&O costs have risen dramatically as claims from the financial crisis continue to flood in.

Marsh’s head of management liability Matthew Rolph said: “Insurers are worried that if customers can prove that Libor manipulation has caused them a personal loss then their potential exposures may increase significantly.”