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LINE FOCUS: D&O insurers wary of claims pipeline
11 February 2010
The soft market for US directors’ and officers’ liability (D&O) insurance continues as competition and surplus business puts pressure on rates.
The soft market for US directors’ and officers’ liability (D&O) insurance continues as competition and surplus business puts pressure on rates.
Except for financial institution lines – where concerns exist about potential claims form the subprime crisis and thee economic collapse that followed it – the market is persistently soft. Last week, speakers at a Professional Liability Underwriting Society's D&O Symposium in New York discussed how and when the market might turn.
Like the rest of the D&O industry, Evan Rosenberg, senior vice-president of Chubb, is worried about what claims might come through. “In the second half of the year I think you are going to see some improvement. Although everyone is afraid it is a false positive,” he said. “On the financial institutions side and commercial real estate we're waiting for that shoe to drop.”
Not underestimating the severity of what may be around the corner, Michael Smith,...
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