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D&O Renewals
– Spot the Difference

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  • D&O Renewals – Spot the Difference

Factsheet

D&O/Management Risks

    D&O prices are on the rise, following a decade of soft market conditions. As well as price increases, it’s important to look out for other features and potential changes at renewal.

    Cover of D&O Renewals PDF

    1. Endorsements

    Not always clearly communicated, these can have far reaching consequences and are appearing with greater frequency than ever before. Moreover, some of the language can be inconsistent and vague. If in doubt, check with an underwriter.

    2. Statements of Fact

    Used to support e-trade or non proposal form based binding, they have become a feature of the D&O landscape. They are often supported by tighter policy language, but this is not the biggest challenge. Closer examination can reveal tricky issues and they often require broker/client attestation to many pages of assumptions and requirements. There is no substitute for an experienced underwriter in what can sometimes be a complex class of business.

    3. Discovery/Reporting Periods

    The deletion or alteration of this provision is rising. It may look inoffensive, but it passes all the control to the underwriter at subsequent renewals and the implications should be reviewed.

    4. Claims Handling Conditions

    Check these thoroughly. Make sure they are clear and fair, consistent with the accepted market standards and free of conflict.

    5. Deductibles

    Whilst these have been a constant feature for USA claims and securities claims, they have long since fallen away elsewhere. Their reappearance could have a material impact (this is also the case on Pension Liability, too).

    Globaldata D&O Survey of 2018:

    • D&O market conditions are changing, as rising claims and a dynamic risk landscape
      impact the sector;
    • The soft market conditions that characterized the UK D&O market in recent years largely
      came to an end in 2018;
    • Premium rates started to rise in 2018, following a decade of soft market conditions;
    • D&O claims handling costs tripled in last 10 years;
    • The number of claims based on regulatory prosecutions has also tripled since 2012.

    Download PDF

    Neil McCarthy

    Written by

    Neil McCarthy

    News

    MPR Update – February 2020

    Latest news, market updates and product information from MPR.

    Insight

    Entity Cover: Can Some Body Help Me?

    In 1998, it wouldn’t have been possible to Google ‘entity cover’, because Google had only just been founded. Equally, even if you had been able to do this, there wouldn’t have been much content, given entity cover only emerged in the same year.

    Language Matters

    D&O and the
    Duty to Defend

    The ‘duty to defend’ is a long-standing provision in D&O policies and, in broad terms, allows the appointment of a lawyer to be the choice of the insured person(s).

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    MPR Underwriting Limited is a company incorporated in England and Wales. Registered Address: 10th Floor, Chancery Place, 50 Brown Street, Manchester, M2 2JG. Company Number: 10529758. Authorised and regulated by the Financial Conduct Authority.

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