The 2011 Directors and Officers (D&O) Liability Survey tracks D&O coverage purchasing patterns. This 33rd in a series of studies conducted by Towers Watson provides organizations with critical structure and cost information for D&O insurance programs.

 Highlights of the 2011 survey include:

  • 25% of public companies and 14% of private/nonprofit respondents indicated that they increased the total limits of liability in their D&O program at renewal.
  • Regulatory claims once again topped the list of top three D&O liability concerns, with an 81% response rate, edging out 2010's 78% response.
  • The number of directors and officers who inquired about the amount and scope of coverage increased significantly in 2011. Over two-thirds (69%) made an inquiry in 2011, compared with 57% in 2010.
  • 18% of private and nonprofit organizations reported an increase in their primary D&O policy premium, though the increase is partly attributable to the 11% that reported a limit increase.
  • The scope of coverage for directors was considered the most important aspect of an organization's D&O program, yet very few firms actually purchased insurance dedicated to independent/outside directors.
  • Twice as many respondents (20%) consider pricing the most important factor when selecting an excess insurer, compared with 10% of respondents who consider pricing the most important factor when choosing a primary insurer.
  • Nearly 20% of respondents that reported having a D&O claim were dissatisfied with the insurer's handling of their claim(s).
  • Less than half (47%) of respondents conducted an independent review of their D&O policies in the past two years.