Subprime Impact on Professional Liability

The subprime crisis has caused significant losses in some business sectors, notably financial institutions that have either directly or indirectly invested in subprime mortgages, and these losses are being felt in the professional liability and management liability (D&O) insurance markets. However, a recent survey (110 respondents) concluded that these losses will have little impact on professional and management liability pricing (see here). More than 90 percent of commercial banks, investment banks, mortgage lenders, real estate investment trusts and other companies…

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