Insurance experts from AIG address issues related to management liability and protection of personal financial assets

Doha, 8th June, 2015: Doha Bank Assurance Company, a wholly owned subsidiary of Doha Bank & recently upgraded to BBB+ by Standard & Poors, hosted a knowledge-sharing session for its institutional clients in collaboration with its specialized financial lines insurance partner AIG.

Held at Doha Bank Tower, the event aimed at providing Doha Bank’s clients with a greater understanding of Directors’ and Officers’ (D&O) liability exposures, while highlighting insurance solutions that are best suited to address these risks.

Commencing the session Mr. Dag Reichel, Head of Wholesale Banking Doha Bank said “This knowledge sharing session is a forum to provide awareness of risks faced by senior management staff and solutions through the D&O cover.”Commencing the session Mr. Dag Reichel, Head of Wholesale Banking Doha Bank said “This knowledge sharing session is a forum to provide awareness of risks faced by senior management staff and solutions through the D&O cover.”

Mr. Brett Pennington, Head of Insurance, DBAC said “DBAC is pleased to provide this interaction session focusing on this specialty line of insurance, and to partner with AIG in respect of the provision & access of this cover for all of our clients.”

The session featured presentations by two senior officials from AIG – Alexander Blom, Head of Financial Lines, MENA, and Muhannad Abdulmajeed, Financial Institutions & Special Risks Leader, MENA.

The interactive presentations delved into several important topics related to liability risk management for senior executives such as increased exposures, corporate governance, D&O liability insurance and their advantages, policy structure and claims.

Attendees were advised that D&O insurance protects the personal assets of directors and officers in respect of wrongful acts undertaken in the course of the performance of their supervisory and managerial duties. In addition, that the globalization of business and greater attention to Corporate Governance by companies across the MENA region (incl. Qatar), is contributing to increased liabilities that Directors and Officers face whilst being part of the boards of companies – leading to growth in the uptake of this insurance.

Bringing the audience’s attention to common myths surrounding the topic of management liability, Alexander Blom said, “Directors and Officers often seem to be under the mistaken impression that they have limited liability, or that they cannot be held liable since they have delegated their authorities. Other common misconceptions prevalent among senior management executives include a belief that the company can indemnify them, and that their personal assets will remain untouched in the event of a lawsuit. Clearing up these misconceptions is fundamental to understanding the importance of purchasing D&O liability insurance and thereby ensuring personal finance protection.”

Enumerating the advantages of D&O liability insurance, Muhannad Abdulmajeed said, “Purchasing this type of insurance allows Directors and Officers to cover fines/legal expenses incurred in defending themselves & also ensure protection of their reputation and personal financial assets, at practically no cost to themselves. For companies meanwhile, this increases their ability to attract and retain talented executive leaders. D&O cover also provides protection to companies listed on the stock exchange against claims brought by shareholders, investors or regulators alleging breach of the securities laws or market regulations.”