Source: American Bankruptcy Institute (July commercial filings and first half comparison).
Another factor driving the need for expanded D&O coverage is class action lawsuits, which are forecast to increase significantly.
Argo Pro has D&O coverage capacity – and is deploying it
Argo Pro has organized a team to offer the management liability coverage that distressed companies are seeking. These complicated policies are structured by our Corporate Solutions Group, a deeply experienced team comprising claims, counsel and other experts, to help companies with bankruptcy, post-bankruptcy, restructuring and post-EPL-claims situations.
Argo Pro offers essentially unencumbered capacity that we can deploy for companies that have filed for bankruptcy or have had a previous class action filed against them.
Why the D&O market is tightening
The market had been soft for much of the last 15 years, and as a result, D&O pricing was too low for a sustained period. Insurers thought it was profitable when in fact it wasn’t, and they were undercharging for coverage. The D&O Pricing Index published by Aon shows a 73% increase in the average cost of $1 million in D&O limits in the first quarter of 2020 compared to the prior year quarter.
With decreasing capacity and increasing demand for robust management liability coverage, there is no better time for brokers to ensure that policyholders have the most comprehensive and responsive coverage in place to manage their particular risk profile.
Craig Landi is president of Argo Pro.
Learn more about Argo Pro.