The facility is guaranteed by Lloyd's insurers
By Kenneth Araullo
Feb 15, 2024 ShareMarsh McLennan has introduced an enhancement to its directors and officers (D&O) insurance offering through the D&O Echo facility, aiming to bolster financial security for its clients against the backdrop of persistent market volatility and fluctuating insurance premiums.
The D&O Echo facility, accessible to Marsh's international clientele across all principal sectors, including financial institutions, offers a limit of $40 million for US-based clients in additional D&O insurance coverage. This coverage kicks in above the initial $25 million.
Furthermore, Marsh offers the option for clients to secure a reinstatement of limits in advance or to fix a price for future reinstatement purchases, available in scenarios where existing limits are depleted by claims.
Backed by insurers at Lloyd’s of London, the D&O Echo facility allows clients to obtain substantial insurance capacity without the necessity of arranging multiple layers of coverage from various insurers – a practice that has become increasingly common in the D&O insurance sector.
Stephanie Manson, UK management liability leader at Marsh Specialty, highlighted the mixed feelings in the client community regarding recent rate reductions.
“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,” Manson said.
Elsewhere for the global broker, Marsh has released the latest edition of its Global Insurance Market Index, the firm’s proprietary measure of global commercial insurance rate change at renewal.
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