The German D&O market - just as with most markets internationally - has been extremely soft, offering extremely broad coverage, a number of (superfluous) extensions etc. for unhealthy premiums. As data collected by the German Insurance Association (GDV) has shown, many of the around 50 carriers in the market are running substantial losses. And as Heiner Eickhoff and Marcel Armon for DUAL rightly point out in their interview below, it could easily become worse, especially once the next economic crisis kicks in.
One of the main drivers of D&O claims is insolvency. Liability of German D&Os is rigorous in that context, and recent court judgements defining illiquidity and the scope of liability have increased this risk further. It is time insurers, brokers and policyholders now change tack in their joint interest to make sure that D&O coverage becomes sustainable and ready for the next crisis.
D&O: Drohende Katastrophe im Gewerbegeschäft Artikel drucken Von Herbert Fromme am 16. April 2018 Die in Deutschland aktiven D&O-Versicherer laufen sehenden Auges auf eine große Krise zu, weil sie Risiken vor allem aus kleineren Unternehmen viel zu billig in die Bücher nehmen. Das glauben Heiner Eickhoff, Gründer und Executive President des Kölner Assekuradeurs Dual, und Marcel Armon, Sprecher der Geschäftsleitung.