The Marsh study found that about 50% of the FTSE 250 companies buy D&O insurance that covers personal assets, up from just 10% of companies that bought such coverage two years ago,
Much of the demand is driven by the need to attract and retain high-caliber candidates, Marsh said in a statement. “As the economy deteriorates, the likelihood of litigation increases,” Matthew Rolph, a managing director in Marsh’s financial and professional practice, said in the statement. “We have seen that companies buying insurance are less concerned about price than ensuring that the terms and conditions of their cover are fit for purpose. Increasingly, this includes a much greater emphasis on the personal liability of directors.”