A highly competitive market pricing environment alongwith a shifting claims landscape is having an adverse effect formany professional liability underwriters, particularly in Directors & Officers (D&O) liabilityinsurance.

Though representing only 1% of total industry direct premiums,D&O insurance comes with a notoriety that belies its size.Sizeable D&O claims arise from events such as corporateinsolvencies, large stock price declines, financial reportingirregularities or regulatory investigations. D&O insurance isintended to cover the directors and officers of an organizationagainst allegations of negligence, misleading statements orwrongful acts that lead to litigation. Leading underwriters in theD&O insurance segment include AIG, Chubb Limited and XL GroupLtd.

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