D&O rates shoot higher in the UK
Broker Jardine Lloyd Thompson (JLT) has foreshadowed rises of between 10% and 40% in UK directors’ and officers’ liability (D&O) insurance premiums following tough reinsurance renewals this year.
Following and excess markets are also becoming more selective about the insurers they are prepared to follow.
JLT’s London-based Head of D&O Liability, Michael Lea, is warning commercial clients to expect a much more intrusive underwriting process when it comes to renewing D&O policies.
“We are seeing indications already that D&O insurance premiums for large financial institutions and firms exposed to the property market are up almost 40%,” he said. “For other sectors the starting point is flat to 10% increases even on better performing companies.”
But he says the news isn’t all bad.
“Unlike the hard market of the mid-1980s there is still plenty of D&O insurance capacity with placements of $US300 million ($468 million) and more available at competitive terms, and there is no sign of insurers looking to impose coverage restrictions,” Mr Lea said.
D&O rates are expected to climb worldwide as litigation follows instability in international equity markets.
Following and excess markets are also becoming more selective about the insurers they are prepared to follow.
JLT’s London-based Head of D&O Liability, Michael Lea, is warning commercial clients to expect a much more intrusive underwriting process when it comes to renewing D&O policies.
“We are seeing indications already that D&O insurance premiums for large financial institutions and firms exposed to the property market are up almost 40%,” he said. “For other sectors the starting point is flat to 10% increases even on better performing companies.”
But he says the news isn’t all bad.
“Unlike the hard market of the mid-1980s there is still plenty of D&O insurance capacity with placements of $US300 million ($468 million) and more available at competitive terms, and there is no sign of insurers looking to impose coverage restrictions,” Mr Lea said.
D&O rates are expected to climb worldwide as litigation follows instability in international equity markets.