AM BestTV: Directors and Officers Buffeted by Litigation, #MeToo Movement, Complex Risks, Say AM Best Analysts

In this episode of AM BestTV, Sridhar Manyem, director, and David Blades, associate director, both in industry research with AM Best, said many insurers that offer directors and officers (D&O) coverage have been affected by unfavorable claims trends and inadequate pricing. Click on to view the entire program.

Blades addressed how loss trends in the D&O business are evolving.

The proliferation of different legal actions against corporate officers created a very challenging marketplace for the providers of D&O insurance, said Blades. Over the last few years what we have seen are direct loss costs and direct loss ratios increasing, as well as expenses for defense and cost containment. This has created a very challenging marketplace in terms of profitability for the writers of D&O insurance.

He also said that, The increasing propensity in general to litigate against corporate boards and the growing amount of funds flowing into shareholder activism, has also created an atmosphere of greater complexity. It has made it tougher for insurers in regards to providing D&O insurance.


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Manyem spoke about the risks connected with providing D&O insurance.

In general, the risks related to D&Os are very complex. There are different types of covers. There are the risks that the insurers generally want to gravitate to, like the Side A covers that cover the D&Os, versus the slightly more risky Side B and Side C covers that require deep knowledge of the D&O market space. The terms and conditions of the D&O marketplace are really, really key in terms of determining what kind of claims can occur.

To access a copy of this market segment report, titled, Emerging Risks and Greater Complexity Challenge D&O Insurers, visit

Recent episodes of AM BestTV include:

  • Expanding Scope of D&O Risks Requires Domain Expertise, Says AM Best Director: Sridhar Manyem, director of research, AM Best, said various forces are increasing the complexity of risks facing directors and officers, requiring insurers to become more knowledgeable about the unique risks of the industries they cover:
  • Insurers Say D&O Risks Are Multiplying, Rates Are Not: Attendees to the PLUS D&O Symposium said directors’ and officers’ exposures are complex and numerous, with insurers struggling to identify the next risks and obtain appropriate pricing:
  • Larger, Diversified EMEA-Based Insurers Show Better Results, Says AM Best Senior Director: Mahesh Mistry, senior director of analytics, AM Best, said insurers in emerging markets of Europe, Middle East and Africa (EMEA) experienced greater financial volatility in 2018, but that the more well-diversified companies produced stronger earnings:
  • UAE Insurers Struggle to Keep Receivables Current, Says AM Best Associate Director: Salman Siddiqui, associate director, analytics, AM Best, said typically longer debt repayment periods in the United Arab Emirates mean insurers there face obstacles in maintaining and reporting accurate financial results:

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at View AM BestTV episodes at

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

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Lee McDonald
Group Vice President, Publication and News

+1 908 439 2200, ext. 5561
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