Liability pull-outs puzzle GC
IN Europe a number of major reinsurers have either withdrawn or cut back significantly on directors’ & officers’ (d&o) and professional indemnity (PI) treaties, a move which reinsurance broker Guy Carpenter has said it found “surprising”, since “most of these treaties are on a risks-attached basis — i.e., these reinsurers are left with paying the claims of 2007 and 2008, but receiving none of the upside of rate increases and tightening of terms seen this year, and probably in 2010”.