Directors' and Officers' (D&O) Liability Insurance premiums continued to fall in the last three months, according to responses to the Willis Index Survey in the fourth quarter of 2005.
However, respondents also suggest a slow down in the rate of decline with smaller discounts being offered than in previous quarters.
For the next three months insurers have been cautious in their predictions – the combination of a sustained period of reductions with uncertainty over the renewal of many year-end reinsurance treaties after Hurricanes Katrina and Wilma has led to 56% of respondents predicting that rates will remain static in the next quarter.
Although 44% of respondents are still anticipating further reductions, these are at the lower end of the scale than previously with the majority predicting less than 10% reductions.
