The directors’ and officers’ (D&O) insurance market in New Zealand is experiencing premium increases of 10-50% as a surge in class actions in Australia spreads fear, according to a new Willis Towers Watson report.

New Zealand insurers’ parent companies are understood to be pressuring them to underwrite more carefully and increase base premiums in response to the Australian experience.

D&O capacity is still abundant, except for companies listed in both New Zealand and Australia that are required to hold a D&O policy, the report says.

Financial results and claims records are affecting prices for such companies.

Premiums will continue to increase, especially for such companies, and there will be more co-insurance among carriers to meet clients’ required capacity, Willis Towers Watson says.