Recent legal decisions affecting lawsuits arising from the subprime mortgage market meltdown could mean that a multi-billion dollar loss prediction for the directors and officers' insurance sector is overblown, a consulting firm said.
Advisen's findings in a new briefing paper reacted to the Sept. 6 "worst-case scenario" from the Bear Stearns investment firm, which saw a possible $3 billion loss for D&O insurers resulting from the subprime collapse.
The report also finds that government action related to subprime loans could be a "wild card" affecting results, and the situation could alter D&O rates for some sectors.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
