Broking giant Marsh today said stability in the UK D&O market in 2005 has continued into 2006.
Marsh said premium reductions, improved cover and less restrictive coverage terms were still commonplace.
According to Clair Collins, UK practice leader, D&O, within the FINPRO Practice at Marsh, said changes to UK legislation in 2005 led to a reduction in the size of claims being paid out in the market.
She said: “The changes to the UK indemnification laws effective from April 2005 were beneficial to D&O insurers as they resulted in an increase in the number of claims being subject to retentions under D&O policies, thus potentially reducing the size of claims payments being made.”
