The D&O Insurance Wave: Staying Above Water
Historical under-pricing of D&O insurance, combined with the advent of class actions, has led to a rapid hardening of the Australian D&O market.
Corporate Australia is feeling the brunt of the reduced availability and affordability of D&O insurance. Companies and directors are faced with the difficult decision to potentially reduce limits or remove components of D&O cover. In this environment, the challenge for companies is in finding the right balance between the mounting cost of insurance and having the right level and mix of protection.
It should also be considered that these impacts are not limited to ASX companies alone; non-listed Small and Medium-sized Enterprises (SME’s) as well as charities are all equally impacted as insurers look to ‘remediate’ their entire D&O portfolios.
In this briefing, Marsh’s Financial and Professional Services Practice (FINPRO) examines the realities of a modern day director and the prospects for the D&O market, and explores how organisations can navigate the hard market.