Tougher Directors' & Officers' Liability
Renewals Need the Right Approach
Jardine Lloyd Thompson Limited (JLT) today warns that companies should expect a much more intrusive underwriting process when it comes to renewing Directors' and Officers' Liability (D&O) insurance and should prepare with the right approach.
Michael Lea, Head of D&O Liability, JLT, 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. Insureds can avoid the worst of these increases and build sound relationships with their insurers by observing a few simple principles during the renewal process whilst seeking to satisfy the concerns of their D&O insurers."
D&O Insurers have suffered tough renewals of their own reinsurance treaties over the New Year and may now be seeking to pass premium increases onto their customers. Following and excess markets are also becoming more selective about which primary lead markets (i.e. main insurers) they are prepared to follow.
Michael Lea continues, "It isn't all bad news though. Unlike the hard market of the mid 1980s there is still plenty of D&O Insurance capacity with placements of US$300m and more available at competitive terms, and there is no sign of Insurers looking to impose coverage restrictions."
JLT has launched a Ten Step Toolkit for D&O renewals - Prepare Early for a Trouble Free D&O Renewal, to help companies tackle this process in the most effective way.
Michael Lea concludes, "Companies need to realise that renewals are about much more than a transactional process. By adopting a few simple measures and techniques, companies can ensure that they differentiate themselves from their peers and achieve a trouble free renewal."
Enquiries:
Jardine Lloyd Thompson
Isabella Young
Tel: 020 7528 4444
Editor's Notes:
About Jardine Lloyd Thompson Limited
Jardine Lloyd Thompson Limited provides insurance broking and risk consulting services to large and international companies around the world that require solutions to complex problems. The majority of their people are based in London but they also have a number of other operations including the Middle East and Sweden.
Clients include many of the world's leading names and they are market leaders in a number of areas, including Construction, Communications and Technology, Life Sciences, Onshore and Offshore Natural Resources, Marine and Credit and Political Risk.
http://www.jltgroup.com/insurance-broker/
About Jardine Lloyd Thompson Group plc
The Jardine Lloyd Thompson group of companies is a leading risk management adviser and insurance and reinsurance broker. JLT is also a major provider of employee benefits administration services and related consultancy advice.
JLT is quoted on the London Stock Exchange and is the largest European-headquartered company providing these services and is one of the largest firms of its type in the world. The Jardine Lloyd Thompson group employs 5,000 people worldwide and through JLT NetworkTM provides our insurance broking services in more than 120 countries.
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