Insurance broker and risk advisor and a business of Marsh McLennan, Marsh, has confirmed that its directors & officers (D&O) Echo facility is now offering clients with enhanced D&O insurance protection, which is being done in order to provide significant financial stability amid continued volatile market conditions and swaying insurance rates.
The company’s D&O Echo facility is available to Marsh clients globally and covers all major industries, which includes financial institutions.
The facility provides clients with up to $75 million of excess D&O insurance cover ($40 million for clients based in the US) attaching anywhere above $25 million.
From what we understand, clients can pre-purchase a reinstatement of the limit, or lock in a price for the future purchase of a reinstatement, which Marsh has confirmed can be accessed in the event that limits are eroded by claims.
Marsh D&O Echo’s streamlined placement mechanism, which is underwritten by Lloyd’s of London insurers, enables clients to access considerable capacity without the need to stack, or secure multiple layers of coverage, from a variety of different insurers.
By simply reducing the layers of insurance and utilising the Lloyd’s claims scheme, Marsh’s D&O Echo has the ability to reduce the number of separate insurers that need to be consulted in the event of a claim.
“Clients have welcomed rate reductions over the last 12-18 months, they remain concerned that another correction in underwriting sentiment, could result in reduced capacity, substantial increases, and claims complications,” commented Stephanie Manson, UK Management Liability Leader, Marsh Specialty.
Adding: “D&O Echo provides clients globally with substantial capacity without being over exposed to a single insurer, which helps limit the risks of market volatility and provides enhanced excess cover beyond what is available in the standard open market.”
