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Daily Insurance Industry News
Friday 17th of August 2018
October 19, 2007

Willis Unveils D&O Database Application

by Stewart Douglas

Story link: Willis Unveils D&O Database Application

Insurer Willis has today unveiled a new tool deigned to help provide support to decision makers in customised directors’ and officers’ liability cover policies, in light of the sweeping legislative changes in relation to directors responsibilities and duties.

The tool has been branded WISDOM (Willis Integrated Solutions Directors and Officers Model, and is designed to enable policies to be more effectively tailored to individual client needs with the demand for directors’ and officers’ cover likely to experience strong growth over the near future.

WISDOM uses data from archived losses in relation to directors and officers liability claims in order to base its predictions as to losses likely to arise from future claims. As a result it enables more accurate customisation of D&O policies to offer more adequate cover for eventual liability claims.

The reform brought about by the Companies Act 2006 will see directors and officers of a company now statutorily responsible to act in ‘good faith’ as regards their duties to the company, rather than relying on the common law principles as before. As a result it is anticipated that the liability of directors and officers will become more frequently contested, with the potential value of claims also likely to increase.

The changes have seen insurers move more quickly towards revising their directors liability policies, as they bid for the potential increasing market in this kind of insurance cover. With the innovative WISDOM model, Willis has cemented its place in the market as the only provider capable of statistically defining the best possible cover.

Speaking today on the model, the first of its kind in the insurance industry, Willis spokesperson Ann Longmore suggested that the science behind WISDOM will allow Willis to surpass the market in terms of offering optimum cover for its clients.

 

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