Brazil's insurance sector is interested in launching D&O civil liability insurance for public sector executives, O Estado de S. Paulo reported, citing João Francisco Borges, president of local general insurance association FenSeg.
According to Borges, the public sector has difficulty recruiting professionals because of the manager's potential liability for his decisions. The need for D&O coverage for the public sector is being discussed by a FenSeg committee and the product may be available in 2017, the report said.
In the aggregate period between January and October, the D&O segment recorded 283.3 million Brazilian reais in premiums, up more than 7% year over year, according to data from the country's insurance regulator Susep. The increase in D&O premiums and claims is mainly tied to the "Lava Jato" corruption scandal, according to the Dec. 9 report.
As of Dec. 9, US$1 was equivalent to 3.36 Brazilian reais.