In response to last week's article concerning escalating D&O rates ("Soaring D&O cover blamed on US greed" 15 August, Insurance Times), I suggest we look more closely at the changes within our own legal and regulatory environment to understand the changing tide of D&O insurance.
Consider the cumulative impact of these phenomena in the last decade:
D&O rates are driven by a number of forces but, in fact, current US litigation against US-domiciled companies has very little impact on the D&O market for UK companies; there are frankly quite enough cases on these shores to keep UK D&O insurers busy. As the saying goes, "you get what you pay for".
If companies really are "going without directors' and officers' cover rather than pay increased premiums", as the article states, they are simply gambling, for all the reasons cited above.
Manager, executive protection, UK and Ireland
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