Companies buying directors' and officers' liability insurance must ensure that they develop good relations with underwriters and claims staff, insurance experts have said.
Tom Ielapi, D&O underwriter, specialty lines, Beazley Group, and Nilay Ozden, SVP, FINPRO Practice, Marsh, gave this advice at Marsh's 2011 Communications, Media and Technology Conference in London. They predicted a rise in D&O claims following the recent swathe of new legislation, including the UK Bribery Act 2010, changes in privacy law globally and the Dodd-Frank whistle-blowing provisions in the US. Ielapi said that a main reason for the changing claims environment was that governments wanted to respond to public concern about the corporate world. The US Foreign Corrupt Practices Act had led to $2.8bn in settlements over the previous two years. "The UK Bribery Act goes a lot further than the FCPA. People will go after the directors," he warned.
Ielapi also noted changes in privacy law: "For D&O cover, it's
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