The issues surrounding the D&O market in Australia are making their presence felt overseas, an expert has said.
Kirsty Kennell-Webb, account manager in the professional and financial risk division at
Gallagher, told Insurance Business that the Australian D&O sector is a hot topic of conversation in the London market.
“It is the huge talk of the market,” Kennell-Webb said. “They [London insurers] have all taken a look at their book, for their portion that makes up Australia, and have changed their underwriting strategy, what kind of rate increases they are looking for, and what kind of information they need.”
With the Australian D&O market currently in flux, thanks in large part to Side C coverage for securities class actions, Kennell-Webb said rates will continue to increase with those in London looking to stay away from the market.
“Most insurers wouldn’t really even quote it unless it was a relatively big company where there might be a bit more rate,” Kennell-Webb continued. “On the commercial D&O side, there are only really one or two markets that will look at Side C. It is a really tough market to be in at the moment if you are a listed entity.”
For brokers, Kennell-Webb stressed that they need to look to work with and engage clients as early as possible to avoid any “last minute surprises.”
“One thing we have been telling our clients for a really long time is that if you want D&O you really need to start the process early,” Kennell-Webb continued. “You need to start engaging with your broker three-four months out from renewal because getting all the information to insurers both in the local and London market does take a long time. You need a lot of time to get all those negotiations underway.”
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