D&O Price Hikes May Level Off
While a 29 percent average premium increase for directors and officers liability insurance in 2001 is likely to be followed by a similar increase in 2002, the end might be in sight for future hikes, according to an expert who studies the market.
Mark Larsen, a consultant in the Chicago office of Tillinghast-Towers Perrin, who is also the director of the firms annual market survey, made those predictions–with one big caveat–during a recent interview, when asked about the surveys finding that overall capacity remained near its all-time high last year.
Noting that the continued presence of capacity means there is no D&O market “crisis” looming, he said that the ability of insurers to get the necessary premium increases to help restore profitability is keeping capacity levels up–and that it may attract new competitors as well.
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