IN THE NEWS

In an article published by Insurance Business Canada, CNA's Andre Linsky, Senior Underwriter, Management Liability and Financial Institutions, discusses how the COVID-19 pandemic has transformed the D&O risk landscape.

The directors & officers (D&O) insurance market in Canada is tightening up at record pace. In the past year, D&O rates have skyrocketed for both public and private companies, and many insurers have started restricting the amount of capacity they’re willing to put up against certain risks.

The first thing underwriters will focus on when considering a D&O risk is a company’s financials, explained Andre Linsky, senior underwriter - Management Liability and Financial Institutions at CNA. He told Insurance Business: “We want to ensure a company has enough liquidity to perform through the next 12 to 18 months. We also need to know a company’s debt position. If their debt is expiring in the near future, we need to understand how they’re going to refinance it.”

“We’re also going to look at how a company has been impacted by COVID-19, what their projections are for the coming year, and how they plan to recover if they have been adversely affected by the pandemic. There’s still a lot of uncertainty around the pandemic, which makes it a little bit more difficult to underwrite a company’s financial solvency.”

For more information and personal insights, read the full feature: D&O risk impacted by COVID-19, wobbly economy and emerging cyber threat, published in Insurance Business Canada.

Published article: HERE