D&O cover set to broaden, predicts Miller

27 September, 2007

Market will follow Liberty's lead in widening cover

Broker Miller has predicted that D&O insurers will begin to broaden their policy cover in response to changes made by Liberty International Underwriters.

In the last few months Liberty has launched a new D&O policy wording with features that Miller says make it stand out in the crowded D&O market. These include no pollution exclusion, no bodily injury/property damage exclusion and cover for shareholder derivative costs.

David Walters, Director – Professional Risks at Miller, said: “Liberty has really shaken the market with its coverage enhancements, in particular the ‘no pollution exclusion’ covering directors – cover which has previously only been available from specialist US markets.

“We predict that the D&O market will now have to carefully consider its response. Our view is that several other D&O carriers will begin to follow suit. The move towards providing even broader cover may attract higher pricing at first, but the hugely competitive nature of the market normally results in rates falling after a brief period.

Walters added: “It is usual that new products try to broaden coverage, particularly in a ‘soft’ market, however insureds should bear in mind that that the experience of the underwriting team and the capacity and security behind the product are an important part of the mix. With the legislative environment under constant change, companies should give serious consideration to the product either at the primary level or in excess layers.”

About Miller
Miller Insurance Services Limited is a leading independent specialist insurance and reinsurance broker operating in the international markets and at Lloyd's. It is a wholly owned subsidiary of Miller Insurance Investments Limited and the sole UK insurance intermediary within the group of Miller companies, which employs approximately 450 people. The Company trades under the brand name ‘Miller’ and handles premiums totalling over $1.5billion p.a. and its Lloyd’s broking origins can be traced back to 1902. Today, Miller is the only privately owned Lloyd’s broker of its size in the UK and its truly independent status gives commercial freedom when advising clients.

For more information please contact:

Hina Gandhi
Tel: +44 (0)20 7031 2996
Email: hina.gandhi@miller-insurance.com

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Joanna Camp
Tel: +44 (0)20 7031 2656  
Email: joanna.camp@miller-insurance.com