Buyers should prepare for further disruption in the D&O insurance market in 2020, including higher rates and restricted cover, as elevated levels of US securities class action litigation look set to continue for the foreseeable future, according to Kevin La Croix, executive vp at specialty broker RT ProExec and author of the influential D&O Diary blog. Companies with US listings…
Lloyd’s managing agency Neon Underwriting is being placed into run-off by its US owner American Financial Group (AFG). AFG said Neon has “failed to achieve” profitability objectives since it acquired the business as Marketform in 2008. In particular, AFG said Neon’s results prospects for 2019 and 2020 fall below its expectations. Marketform relaunched as Neon in 2016 with a book…
European D&O insurance buyers face further rate hardening in 2020 and could find a squeeze on available capacity as established players either exit the market or impose limits, according to Clyde & Co. Henning Schaloske, partner at the law firm, said insurers are expected to restrict limits in 2020. But although this could make it more difficult for buyers of…
The European D&O market has hardened throughout the year with some companies now struggling to find capacity for large or difficult risks, according to Elke Vagenende, head of western Europe for FINEX at Willis Towers Watson (WTW) who expects this trend to continue throughout 2020. This could lead to budget problems for any risk managers that have not yet taken…
Risk managers with operations in Canada need to take note of a number of amendments to the nation’s Bankruptcy and Insolvency Act (BIA), which mean directors face expanded liability for transactions they carry out before a company is declared bankrupt, according to a Canadian legal expert. Nedko Petkov, partner in the litigation/dispute resolution group at leading commercial Canadian law firm Dale & Lessmann,…
The president of Swedish risk management association Swerma has called on the insurance industry to improve product development and boost innovation, while encouraging risk managers to up their game as the market hardens. Swerma president Athina Pehrmantold CRE that innovative product development is the number one area in which risk managers would like insurers to improve and put in more…
The value of mergers and acquisitions (M&A) in the EMEA region fell during the first half of this year, yet Aon said insurance bought to cover these transactions has remained resilient. Despite this, the broker has challenged the insurance market to develop more innovative solutions. In a new report with Mergermarket, Aon said 3,962 M&As were reported in the EMEA…
Specialist underwriter Beazley has appointed Gabriel Rodriguez as senior specialty lines underwriter in Spain. Mr Rodriguez will join the team on e-trading platform myBeazley, led by Francisco Antonio Alcaide, as it rolls out to the Spanish market with professional liability, D&O liability and cyber cover. Mr Rodriguez joins Beazley from Markel, where he was senior underwriter. Lorena Segovia, head of…
Just 25% of UK businesses facing Brexit-related risks have informed their insurers, putting claims at high risk of being rejected, according to new research from Mactavish. The firm added that individual directors could be exposed to litigation if they fail to inform insurers of such risks because of traditional limitations in D&O insurance. Mactavish found that 22% of senior executives…
D&O underwriters are increasing their scrutiny of US American Depository Receipts (ADRs), following recent cases that point to likely increased class action exposure for foreign companies. Recent legal cases in the US have shown foreign companies with ADRs – derivative securities issued by a depositary bank – may be more exposed to securities class action litigation than previously thought. In…