European D&O Insurance Market to Benefit from Governance and Legal Reforms

Directors & officers (D&O) liability insurance in Europe is primed for robust growth given changes to laws governing executive responsibilities and to collective litigation processes. Accounting scandals and corporate governance shortfalls in Europe cost investors billions of Euros in the early years of this decade. Governments across Europe have passed laws requiring new disclosures, enhanced shareholder protections, and greater transparency. The recent economic crisis, rife with banking scandals, further propelled these efforts. Integral to these corporate governance reforms are proposed changes to litigation procedures, and most notably toward developing a formal structure for collective action proceedings. The progression toward implementing collective action mechanisms is in varying stages by country, and the degree of liberalization differs among countries, but the clear trend is toward a more collective-friendly civil legal system in most countries. As European directors and officers are placed increasingly under the microscope of transparency, and as litigation remedies become more readily available for shareholders, the number of suits against corporate boards and managers is expected to mushroom. As a result, D&O liability insurance has become one of the fastest growing insurance products in Europe.

Price: $499