Financial institutions are finding it increasingly hard to get affordable liability insurance for directors and officers, sometimes facing rate hikes of 100 percent or more, brokers who have eyeballed the situation said.
"Financial institutions are all having a hard time," said De'Andre Salter, chief executive officer of wholesale broker Professional Risk Solutions, Somerset, N.J. The D&O coverage problem is not limited to small banks, but extends to the entire sector including money managers, credit companies and leasing firms.
Mr. Salter said he found it hard to put an average number on the price hikes. "I've seen 20 percent to 250 percent," he said.
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