Increase in German D&O

Forecasting a fivefold increase in directors’ and officers’ (D&O) liability premiums over the next five years to DM1bn, Axel Horster of GeneralCologne Re believes claims are due for a sharp increase and insurers should raise premium levels by at least 15%. While D&O has been available in Germany for many years, the takeup situation has changed. The government is expected to increase the rights of the fast-increasing number of people now choosing to invest their savings in shares, particularly for retirement. Where German companies are listed on the US stock exchange, US liability laws apply, and disgruntled German shareholders could even sue in the US courts.