“The number of companies offering this product has risen, and the demand for the D&O policy has increased as well,” Eduard Simionescu, Manager of Marsh Romania consultancy company, told Business Standard. However, demand is higher due to the fact that “it has to be done,” and not because managers understand the need for insurance, he added.
“We have received applications from companies listed on the Bucharest Stock Exchange who want to insure their managers for €5,000. Large companies pay hundreds of thousands of euros to buy protection against liability,” Simionescu said. He stressed that the manager liability insurance market will become interesting. Not only do large companies insure their managers for significant amounts but there is also a “potential for numerous, small [companies], which will make for significant volume over time.”
“We have had D&O insurance policy applications worth €50 million. The usual tendency is in terms of insurance is €5-10 million for large companies,” Simionescu explained.
According to the Marsh Romania Manager, there has not been significant litigation in Romania, but damages relating to such contracts are sure to be awarded in future. The respective insurance premium includes the company’s financial status, its history of litigations, whether it is listed on the stock exchange, its intention to merge with or acquire other companies, its line of business, as well as territorial dimensions of the business.
“We have received applications from companies listed on the Bucharest Stock Exchange who want to insure their managers for euro 5,000 ''Eduard Simionescu Manager, Marsh Romania
