Posted on 11 Jan 2010
The recession and sagging economy appears to have led to an increase in impairments among insurers in 2009, with at least a 30% jump from 2008.
At least 20 insurers among all life, health and property-casualty companies became impaired this year, compared to 15 in 2008 and 14 in 2007, according to BestWeek.
Though the pain is widespread, according to BestWeek, it’s especially felt by a company’s directors and officers insurers, which pay for defense costs, as well as any settlements that arise from civil suits.
In the case of Reliance Insurance Co., the largest insolvency to date, the Pennsylvania Insurance Department was able to reach an $85 million settlement in a civil suit against Reliance’s former directors and officers, the publication reported.