Insurers are set to increase directors' and officers' (D&O) premiums by 15%, after new laws designed to improve corporate governance are passed.
The government is expected to introduce a criminal offence of "corporate killing" that is designed to make it easier to prosecute companies held liable for deaths caused through gross negligence.
Experts have warned that the new laws will force an increase in D&O premiums, since companies will seek cover for their legal expenses incurred.
Martin Firman, head of D&O insurance at Ace Europe said: "The impact on premiums would probably be a rise of between 10% and 15%."
D&O premiums have risen by several hundred per cent this year because of US boardroom scandals such as Enron.
Firman added: "This sort of legislation would ratchet the premiums up even higher, there's no question."
