Markets

Taxpayer money used to bail out failing banks may mean lower dollars paid out on settlements for the latest crop of securities class-actions against financial institutions, an academic predicted recently.

Insurance trade organizations said they were successful in fending off proposals to further increase assessments on carriers as part of the proposed New York State budget that state leaders agreed on over the weekend.

Seventy-two percent of respondents to a recent survey on D&O claims issues answered yes to the question, "Have you been involved in an actual claim where the D&O insurer paid more than you believe it needed to based upon the facts and coverage issues?"

With seemingly no near-term potential for the stock market to move back up in 2009, the securities plaintiffs' bar will be looking back at 2007 stock movements to keep their practices going.

"The market has no choice but to take account of where we truly are. It will harden by fourth-quarter 2009."

The fall of insurance industry giants in 2008 and the unraveling of the banking and credit markets provide our industry with an opportunity to learn some valuable lessons, according to executives of specialty lines insurance firms.

The good news for insurance brokers who place directors and officers liability insurance is that most insureds and carriers believe producers are positive and relevant factors in the resolution of D&O claims.

While plaintiffs' lawyers may be eyeing the prospect of convincing federal lawmakers to lower restrictions on securities class actions, they're likelier to get a clear shot at credit rating agencies than corporate directors and officers.