JLT issues warning on D&O liability renewals
Jardine Lloyd Thompson (JLT) is warning companies that when they come to renew their directors’ and officers’ (D&O) liability insurance, they should expect a much more intrusive underwriting process than in previous years.
According to the broker and risk management specialist, D&O insurers may now be seeking to pass on tougher conditions from their reinsurers, in premium increases.
The firm’s head of D&O liability, Michael Lea, says: “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% and that for other sectors the starting point is flat to 10% increases even on better performing companies.”
JLT is therefore advising businesses to adopt the right approach in their preparations and make sure they build strong relationships with their insurers.
However, Mr Lea reassures that today’s market is “unlike the hard market of the mid 1980s; there is still plenty of D&O Insurance capacity with placements of US$300 million and more available at competitive terms, and there is no sign of insurers looking to impose coverage restrictions.”
Category: Business Insurance News, Insurance News, Jardine Lloyd Thompson News
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