Declarations

Higher Exposures, Limits

“Clearly, companies are reacting to the fact that D&O liability exposures facing directors and officers are arguably at an all-time high. Insurance buyers continue to be threatened by an ever-expanding litigation environment and have an increased awareness over regulatory issues they might encounter.”

—Larry Racioppo, with the executive liability group in Towers Watson’s Brokerage unit. A Towers Watson survey shows that companies are increasing D&O liability limits and a growing number with international operations are purchasing D&O policies in foreign jurisdictions. According to Towers Watson, 21 percent of respondents increased their D&O limits, versus 12 percent in 2008.

Much Flooding Expected

“Excessive precipitation, mainly in the form of snow, coupled with continuously frigid temperatures has yielded a thick snowpack in much of the upper Midwest. We expect significant flooding when this snow begins to melt.”

—Lynn Maximuk, central region director of the National Weather Service. The NWS is forecasting that a large swath of the United States is at risk of moderate to major flooding this spring. For the third consecutive year, forecasters predict moderate to major flooding along the Red River of the North, which forms the state line between eastern North Dakota and northwest Minnesota, and includes the Souris River Basin and the Devils Lake and Stump Lake drainages in North Dakota.

Coverage LackingQuake

“The products offered by insurance companies are not meeting the needs of Missouri homeowners when it comes to earthquake protection, and it’s now affecting our largest metropolitan area.”

—John M. Huff, Missouri Department of Insurance director, said the number of consumers with earthquake coverage on their homes has decreased sharply over the past 10 years. The cost of earthquake insurance also has increased drastically, doubling in several counties. Huff previously has said that even consumers with earthquake coverage are not adequately protected because of large deductibles. Traditionally, the shortcomings in coverage have been limited to southeast Missouri, but now are starting to spread to St. Louis.