The 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. (Credit: rawpixel.com/Adobe Stock)
The tremendous growth in the number of Special Purpose Acquisition Companies (SPACs) has increased demand for directors and officers (D&O) insurance. As a result, insurers have been grappling with the growing stack of submissions for SPACs looking to secure coverage to protect against potential claims.
According to Bloomberg Law, between September and the end of 2020, the number of SPACs that went public skyrocketed. This 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.
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