The impending extradition of the three Nat West bankers to the US will most likely have a knock on effect in the directors and officers' (D&O) insurance market but should not result in raised premiums, according to Aon.
Adam Codrington, executive director within Aon's Professional Risks unit, said: “It would be an overreaction if insurers looked to raise the price of D&O cover or charged extra to cover the threat of extradition but buyers will need to pay increased focus to their policy wordings.
“It is no exaggeration to say that on a few words hangs the balance of people's personal assets and buyers of D&O insurance need to be absolutely fastidious when checking the terms and conditions of their insurance policy.
Senior executives need to also ensure that they are personally satisfied that their company's D&O cover is appropriate for them and that they will be allowed access to their policy even after they have left their company.”
