Directors and officers insurance industries, but the financial services, technology and life sciences sectors are expected to take the largest hit, according to a study by Carpenter Moore, the insurance brokerage subsidiary of the Nasdaq Stock Market

Risk Management, May, 2008

Directors and officers insurance industries, but the financial services, technology and life sciences sectors are expected to take the largest hit, according to a study by Carpenter Moore, the insurance brokerage subsidiary of the Nasdaq Stock Market. These findings fall in line with securities class action filing rates, which have consistently ranked these three industries as the top three defendants. "In 2007, the bulk of the 166 cases filed were brought against companies in those three sectors," said author of the report and senior managing director Lauri Floresca. Additionally, the study found a correlation between financial market volatility and federal securities class action suits, with the ongoing mortgage crisis leading to 28% of all cases coming against financial services firm last year. Between 1997-2006, this average was only 12%. In brighter news, the lowest D&O premiums were found in the energy and manufacturing industries, which cost on average $84,471 and $102,424 per $5 million in coverage, respectively.

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"Directors & Officers Liability Insurance Peer Benchmarking Report," Carpenter Moore