AIRMIC is setting up a task force to investigate directors' & officers' insurance (D&O), following concern from members that its cost continues to rise sharply. Paul Hopkin, director of risk management for the Rank Group, will act as chairman and 60-70 members have already expressed an interest.
The problem is particularly acute for companies with listings in the US, some of which have seen increases of 200% from what were already record levels. Other firms, even those with extensive North American interests, have seen lower rises, but still typically around 60%.
"In some cases we are talking about millions of extra pounds a year, which is clearly unacceptable for what is almost a compulsory class of insurance," says AIRMIC executive director David Gamble. "The task force will investigate ways to help members reduce their D&O premiums, either through their own activities at company level or collectively as a trade association."
Details of the new working party, once formed, will be made available to AIRMIC members and details posted on the website. Anyone with an interest in taking part should contact David Gamble on 020 7480 7610, e-mail: david.gamble@airmic.co.uk
