Competition has heated up

in the D&O Market but it

could be short lived warns JLT

Jardine Lloyd Thompson Limited (JLT) advised at the Federation of European Risk Management Association (FERMA) conference today that if companies are offered discount on their Directors & Officers (D&O) insurance they should take it but not put it into their budget for next year.

"Competition has heated up in the market for D&O for commercial companies, producing reductions of 5-10 per cent on a like-for-like basis", according to Mike Lea, Head of JLT's Financial and Professional Risks practice. "Very large accounts are the greatest beneficiaries. It could be short lived: insurers are probably trying to fulfil targets set when rates were expected to harden significantly".

Ian Nichol, Partner, JLT, says "The commercial D&O market remains a competitive environment for companies with strong balance sheets and a number of new carriers have helped to maintain pressure on premiums whilst also providing alternative options for clients and additional capacity.

"There has been a lot of speculation about the impact of increased claims notifications but to date this has not manifested itself in across the board premium increases or restrictions in policy wordings. However, it is a different environment for Financial Institutions where rates are still increasing by 25-40 per cent but new players have come into the market and the upward trend has stabilised".

Enquiries:
Jardine Lloyd Thompson Ltd
Isabella Young
Tel: +44(0)20 7558 3387
Email

 

Editor's Notes:

About Jardine Lloyd Thompson Limited (JLT)
JLT is a specialist London market insurance broker and risk consultant providing market leading industry knowledge and expertise in specialist fields to some of the world's largest companies.

JLT is part of the Jardine Lloyd Thompson group of companies, a leading risk management adviser, insurance and reinsurance broker and a major provider of employee benefits administration services and related consultancy advice.

Jardine Lloyd Thompson Group plc is quoted on the London Stock Exchange and employs 5,500 people worldwide and through JLT NetworkTM provides our insurance broking services in more than 120 countries.
http://www.jltgroup.com/about/our-businesses/jlt-limited/