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Insurers Ready for Claims in Libor Case

Source: UK Sunday Telegraph

Posted on 16 Jul 2012 by Neilson

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BarclaysTHE LIBOR scandal engulfing the world's banks could result in billions of pounds worth of losses for the insurance industry, experts have warned.

Insurers are braced for payouts on Directors and Officers cover, which protects firms against shareholders suing for negligence. The cost of this form of insurance has risen dramatically, amid ongoing claims from the financial crisis.

The impact is likely to be felt across the industry, with sources fearing that more executive resignations like Bob Diamond, the former Barclay's chief executive, will provide "targets to aim at".

Matthew Rolph, head of management liability at insurance broker Marsh, said: "Insurers are worried that if customers can prove that Libor manipulation has caused them a personal loss then their potential exposures may increase significantly."