Aon | Financial Services Group
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In February 2022, the Financial Services Group at Aon released D&O Insurance for Non-U.S. Domiciled/U.S. Traded Companies in 2021, detailing the litigation landscape, rate evolution, program limits, market capacity, and primary carriers for the D&O insurance of U.S.-listed companies domiciled outside the U.S.
These companies are typically subject to higher litigation risk than non-U.S. listed companies, evidenced in recent years through high claims volume, heightening the focus of D&O underwriters. In addition to securities class actions (SCAs), U.S derivative claims against non-U.S. companies have also been a central topic.
While there are indications that the litigation landscape is cooling for U.S.-listed non-U.S. companies, directors and officers should continue to take proactive measures to mitigate risks. Rates stabilization began in Q4 2021, likely from competitive pressure brought by new capacity, which means premium reductions are still possible. It is reasonable to expect this trend to continue in early 2022 for at least the excess level.
Aon is not a law firm or accounting firm and does not provide legal, financial or tax advice. Any commentary provided is based solely on Aon’s experience as insurance practitioners. We recommend that you consult with your own legal, financial and/or tax advisors on any commentary provided by Aon. The information contained in this document and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity.