Rates for primary Directors & Officers Liability insurance programs for public companies in Q1 2012 were up an average of nearly 1.5 percent, after decreasing an average of about 4.3 percent in 2011.
However, the excess D&O market remains soft, meaning rates for a total program—primary and excess layers—are not increasing at the same pace, according to Marsh Global Analytics.
Lou Ann Layton, practice leader at Marsh's Financial and Professional Liability Practice (FINPRO), says the effect of high-severity securities-class-action lawsuits cannot be dismissed as a reason for insurers seeking rate, as settlement amounts continue to grow.
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