Brazil's insurance regulator to include payment of fines in D&O coverage

Posted On: Nov. 17, 2017 4:34 AM CST

Brazil's insurance regulator Nov. 20 plans to apply new rules in the directors and officers insurance segment, such as inclusion of payments of fines, BNamericas reported citing Valor Economico. Currently, the D&O coverage includes costs related to legal defense and the freezing of assets. Flavio Sa, financial lines managers at AIG Seguros Brasil S.A., said that coverage of fines poses a considerable risk to insurers and could lead to an increase in premiums. Directors and officers insurance premiums grew 5% year over year to $78.4 million in the first nine months.