Risk managers set to go it alone on D&O

The escalating cost of Directors' and Officers' insurance has prompted risk managers to investigate alternative forms of cover, according to the Association of Insurance and Risk Managers.

According to an Airmic survey of UK risk managers, 84% of the sample had either started to indemnify directors themselves as a substitute for some types of D&O insurance or were considering doing so.

The figure for the use of Alternative Risk Transfer mechanisms such as captive insurance companies was 81%. Moreover, 58% of respondents were interested in legal cost insurance as a substitute for D&O.

Some 39% were considering or, in one case, using bonds or letters of credit as an alternative. 48%