The annual Towers Watson Directors and Officers (D&O) Liability Survey tracks D&O insurance coverage purchasing patterns. This 34th in a series of studies provides organizations with critical structure and cost information for D&O insurance programs.

The D&O insurance marketplace is clearly firming, based on increased pricing experienced in many sectors. Forty-one percent of private/nonprofit respondents and nearly 30% of public companies indicated that their premiums had increased in 2012.

Towers Watson Media

Interest in the amount and scope of coverage increased for both private and public companies. Most notably, 70% of directors and officers at private companies raised the issue, a 12-percentage-point increase over 2011’s 58%. Interest among public companies edged up from 77% in 2011 to 80% in 2012.

The biggest jump in directors and officers liability insurance claims in 2012 was brought about by regulatory actions, increasing to 23% of responses from 19% in 2011 and 16% in 2010. The increased concern over regulatory litigation may reflect new laws put in place since the financial crisis, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as an increase in whistleblower bounties.