Director and Officer Tag


News Brief header U.S. directors and officers (D&O) insurers continue to see underwriting losses despite taking in more premium to correct years of competitive pricing and adverse claims trends, such as growing verdicts, settlements and defense costs, according to reports from two rating agencies.

According to Fitch Ratings and AM Best, D&O insurers increased direct premiums written in 2020 by 40%, following an increase of 20% in 2019. However, this did not stop the line of business from recording an underwriting loss for the fourth straight year in 2020. Per Fitch Ratings, the combined ratio over the same period was 107%.

Organizations trust their senior leaders to make important decisions and act with stakeholders’ (e.g., shareholders, customers and employees) best interests in mind.

However, in today’s climate of increased corporate accountability, protecting your senior leadership team from directors and officers (D&O) liability exposures can be a significant challenge—making D&O coverage a crucial aspect of your organization’s risk management program.    

In today’s business climate of corporate transparency and accountability, an organization’s officers and directors face a myriad of employment-related exposures.

Sarbanes-Oxley regulatory mandates and shareholder activism mean directors are more frequently at risk, translating to rising claims and escalating settlement costs. In the wake of unprecedented corporate scandals in recent years, clearly the trend of corporate accountability applies to large corporations. But privately held companies, including nonprofits, are not exempt from litigation arising out of the management decisions of their boards. They, too, are at risk.