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Sarbanes-Oxley News & Developments
Better D&O Insurance CoveragePublic companies still face tough insurance coverage issues for directors and officers.
> > Insurance brokers and underwriters say that price hikes for all but the largest and most difficult risks have moderated to the low double digits for coverage that is the same or better. Some commercial insureds with lawsuit-free records and good corporate governance are enjoying price decreases. Insurers are asking potential insureds a lot of questions. Corporate buyers find that they need to make the strongest case that their directors and officers are less likely to be sued than those of similar-sized competitors. Things appear to be easing up compared with two years ago, when underwriters had grown extremely shy of D&O risks. Wanting to preserve their profit margins because of large losses that began in 2002, insurance companies tend to "increase premiums across the board with little differentiation," says Lou Ann Layton, national D&O practice leader for Marsh, the largest commercial insurance broker.
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Source: CFO
Published:2004-02-18
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