Amid market volatility, Marsh unveils up to $75m excess D&O insurance facility

Insurance broker Marsh has expanded its directors’ and officers’ insurance (D&O) Echo facility to provide greater financial stability amid continued volatile market conditions and fluctuating insurance rates.

Marsh’s D&O Echo facility is now offering clients, globally and covering all major industries including financial institutions, up to $75 million of excess D&O insurance cover ($40 million for clients based in the US) attaching anywhere above $25 million.

Additionally, clients can pre-purchase a reinstatement of the limit, or lock in a price for the future purchase of a reinstatement, which can be accessed in the event that limits are eroded by claims.

Underwritten by Lloyd’s of London insurers, Marsh D&O Echo’s streamlined placement mechanism enables clients to access significant capacity without the need to ‘stack’ – or secure multiple layers of coverage – from several insurers, a feature commonly seen in the D&O insurance market in recent years, the broker said.

Marsh pointed out that by reducing the layers of insurance and utilising the Lloyd’s claims scheme, its D&O Echo can reduce the number of separate insurers that need to be consulted in the event of a claim, streamlining the recovery process for clients.

Stephanie Manson, UK management liability leader, Marsh Specialty, said: “Clients have welcomed rate reductions over the last 12-18 months, they remain concerned that another correction in underwriting sentiment, could result in reduced capacity, substantial increases, and claims complications.

“D&O Echo provides clients globally with substantial capacity without being over-exposed to a single insurer, which helps limit the risks of market volatility and provides enhanced excess cover beyond what is available in the standard open market.”

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