Hundreds of millions of dollars in insurance claims for corporate directors and officers involved in the investigation of manipulations of the Libor rate could push up the costs of directors and officers insurance for all companies, Reuters reports. Insurers fear that hefty claims from the scandal, which involves than a dozen global banks, will drive up costs at a time when coverage rates are already rising.
“We're going to be spending the next three-to-five years getting our heads around how much this is going to cost,” one source told Reuters.
However, illegal actions invalidate D&O policies, so insurers may get a break if the authorities bring criminal charges against banks.
For the full story.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
