India’s insurance companies have seen a growing demand for directors and officers liability (D&O) insurance policies after the Panama Papers revelations.
After the leaked documents exposed how wealthy individuals and corporations hid their assets from public scrutiny using offshore tax havens, authorities are paying closer attention on the finances of directors and senior bosses of companies, prompting them to seek large D&O cover.
Mahesh Chainani, senior vice president at D&O specialist Howden
India Insurance brokers, said that corporations are now going for covers as big as £53 million or Rs5 billion, The Hindi Business Line
According to the report, Chainani said the demand for D&O cover has soared amid the 60% decline in premiums during the past five years due to increasing competition.
The report added that Bajaj Allianz
General Insurance has observed a 35% year-on-year growth for D&O policies. Future Generali
also noted a rising demand from SMEs and start-ups.
The D&O coverage sought has also widened beyond the basic policy with mounting litigation and expanding corporate exposure, Indian insurers said.
Insurer Raheja QBE
said businesses now want covers that include civil fines and penalties, bail bond costs and counselling fees.