|
|
 |
|
| Here's the lowdown on property, general liability, worker's compensation, directors and officers liability, and political risk. |
|
|
CFO.com Staff,
CFO.com | US
|
|
| January 22, 2002 |
|
Search by line of insurance:
|
|
|
Directors & Officers Liability
Pricing
D&O premiums increased, on average, 25 percent to 40 percent on low end of risk scale. More loss-intensive businesses — think technology — experienced 100 percent to 600 percent spikes in premium prices. Overall, market observers expect premiums to rise another 25 percent over next year. Why? High costs for settling securities claims continue unabated.
Deductibles/Coinsurance and Limits
Despite rise in D&O premiums, buyers seeking to retain limits bought last year... While buyers vying for full limits are finding them, coverage often spread among nearly double the carriers... In some cases, deductibles doubling from prior levels... Coinsurance, while not mandatory, increasingly an option for companies willing to assume more risk above deductible.
Availability
Buyers have been able to hold line on terms and conditions of prior D&O liability insurance renewals. But current treaty reinsurance negotiations may yield more restrictive language in primary insurance policies... Limits available, although one risk manager says they're harder to find above $10 million compared with a year ago. That's especially true in plans involving a number of insurers, since each carrier's likely to offer less.... Limit availability also subject to whims of currently skittish reinsurers.
Underwriting Trends
Buyers subject to far more scrutiny. Corporate customers facing due diligence normally associated with a medium-sized acquisition or bank credit application... Underwriters keen on seeing how companies behave in claims situations. Did defendants fight hard or settle easily — and for large amounts... Given the growing number of restatements, insurers also want to take hard look at corporation's revenue-recognition and insider-trading controls and practices.
|
Video
