Update: Subprime Impact on Professional Liability

Subprime and related credit market losses will impact both the professional liability (E&O) and the directors & officers (D&O ) insurance lines, and underwriters will respond (and some have already) with all the normal moves following catastrophic losses: tighter underwriting, reduced coverage, and higher pricing. For example, some underwriters of mortgage brokers professional liability insurance have already exited from this line. The real question is whether the underwriting responses will be contained to those entities suffering the losses or will...