D&O Price Hikes May Level Off
While a 29 percent average premium increase for directors andofficers liability insurance in 2001 is likely to be followed by asimilar increase in 2002, the end might be in sight for futurehikes, according to an expert who studies the market.
Mark Larsen, a consultant in the Chicago office ofTillinghast-Towers Perrin, who is also the director of the firmsannual market survey, made those predictions–with one bigcaveat–during a recent interview, when asked about the surveysfinding that overall capacity remained near its all-time high lastyear.
Noting that the continued presence of capacity means there is noD&O market “crisis” looming, he said that the ability ofinsurers to get the necessary premium increases to help restoreprofitability is keeping capacity levels up–and that it may attractnew competitors as well.
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