fake rolex rolex daytona replica
soap2day


Magazine

Read the latest edition of AIR and MEIR as an Interactive e-book

Jan 2022

Global: D&O pricing increases 30-100% across the globe

Source: Middle East Insurance Review | Dec 2021

Globally, D&O pricing has risen in almost every country during 2021, with increases between 30% and 100% reported in countries worldwide according to a report launched by Legal network Global Insurance Law Connect (GILC). The report had input from insurance lawyers in 20 countries.
 
The report noted that price increases were higher in certain markets such as the UK which saw minimum 100% price increases and China with increases of up to 100%.
 
The research said that the pandemic crisis has been an accelerant but not the main cause for the hardening market with rising premiums in the D&O space. “The real reason for rising premiums was that there was a gradual appreciation that there was a greater D&O risk in the realms of corporate mismanagement and financial misrepresentation together with a widening exposure of new risks in particular like cyber, but also environmental and gender pay/employment issues.”
 
GILC’s report has uncovered some significant trends away from traditional D&O buying because of the global price pressure. In Denmark, Ark Law’s Mr Jesper Ravn said, “A number of publicly listed companies … have retreated from purchasing D&O insurance policies with full liability coverage. Instead, the companies self-insure D&O risks through a letter of indemnity in favour of the directors and officers.”
 
In Switzerland, GBF law firm said that companies have been actively investigating the establishment of captives for their D&O risks.
 
However, in some countries, the price limit has been reached. In Australia Sparke Helmore’s Mr Dino Liistro said, “Over the last year, insureds began maintaining the same legal spend in the face of rising premiums by increasing excesses or reducing limits of cover and in some cases looking to other risk management solutions to bridge the gap.”
 
In spite of all this, the demand for D&O cover continues to grow, particularly in emerging markets, said the report. Khaitan Legal Associates said that pre-pandemic, “The demand for liability insurance surged in India.” Buren Legal of China said, “Demand for D&O insurance has snowballed in China in recent years.”
 
Similarly, growth is mirrored in Latin America, where the need for D&O insurance is significant, and capacity is desperately short because of the small number of insurers operating in the region. In addition, there remains capacity for growth in European markets, especially in the smaller ones where D&O demand is still trending upwards. M 
 
| Print | Share

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.


Follow Middle East Insurance Review