NEW YORK--While insurers are increasingly worried over legal action after the subprime mortgage market collapse, the real concern for writers of directors and officers insurance should be the falling stock market, an Aon broker told an industry meeting.

In a presentation titled "Directors and Officers Insurance Outlook 2008: It's All About The Subprime," Michael D. Rice II, Aon Financial Services Group chief executive officer, said that when it comes to the directors and officers liability insurance market, "subprime itself will not kill the D&O market." He added, "I'm more concerned about the bear market than subprime."

In remarks yesterday at a meeting of the Association of Professional Insurance Woman here he discussed the domino effect that failure of home buyers to pay mortgages they could not afford has on the financial markets.

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