With more experts putting numbers to the possible insurance liability impact of the subprime mortgage crisis last month, the figures are starting to mount, with estimates ranging from $3 billion to 10-times that amount. The first figure--which relates only to potential directors and officers liability claims--could be dwarfed by $16 billion-plus in professional liability insurance losses, also known as errors and omissions insurance, some experts say.
While the latest expert analyses are based on data collected so far, some forecasters also note that information available to date represents just the tip of what seemed like a slow moving iceberg back in April, when National Underwriter first reported on the subject. (See NU, April 2, page 14.)
Then experts were speculating that the subprime crisis would not have the D&O impact of financial meltdowns like Enron or WorldCom, or even the lesser impact of options backdating cases.
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