The collapse of Enron Corp. and other recent accounting imbroglios are making it tougher these days for corporations to get insurance coverage for their directors and officers and for their pension and 401(k) plans. When they do get it, companies are paying a lot more for coverage that has been pared back and doesn't last beyond a year. Price hikes of 40% are not unusual, as is the reluctance of many insurers to offer multi-year policies.

If that isn't enough, insurers also are requiring companies to have "more skin in the game," meaning they'll have to accept a chunk of liability through retentions and co-pays. Another fact of life is the expectation of heavy scrutiny of company finances, relationships with consultants and auditors and even the activities of executives.

Feeling The Pinch

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.