The tremendous growth in the number of SPACs has increased demand for directors and officers (D&O) insurance, Property Casualty 360 reports. As a result, insurers have been grappling with the growing stack of submissions for SPACs looking to secure coverage to protect against potential claims.
Increased market demand for coverage has backlogged carriers with submissions ― a problem exacerbated by fewer markets willing to write the risk due to the growing potential for lawsuits. Moves by the SEC regarding proper accounting of warrants are also driving premiums up for D&O coverage. Read more.
