Is it Time to Revisit the Scope of D&O Coverage?
Capital providers supporting D&O underwriting facilities have been heartened to witness double-digit rate increases in D&O underwriting lines over the past several calendar quarters – marking a possible end to the decade-long soft market drought. D&O insurers reportedly are no longer reducing expiring premiums just to hold onto underwriting business, and appear to have already begun increasing premiums substantially on renewal or new accounts.
John McCarrick, Chair of the D&O Group and Paul Schiavone, Senior VP and Global Head of Alternative Risk Transfer and North American Head of Corporate Long Tail at Allianz, co-authored "Is it Time to Revisit the Scope of D&O Coverage?," a guest post published in the D&O Diary.
John and Paul propose that as D&O insurers seek to return to profitability by raising prices, the insurers should also revisit many of the coverage extensions that have become standard in recent years. The authors present a “wish list” of specific items they suggest insurers might want to consider; the list itself is the result of the authors’ “anonymous survey” of insurer-side professionals.