Resources for Sarbanes-Oxley (SOX)

D&O claims frequency down in 2007: Role of SOX uncertain

www.canadianunderwriter.ca

Despite a slight reduction in frequency of class actions against boardroom executives in the United States, it’s too early to say we’ve entered a “Brave New World” of good corporate behaviour because of theSarbanes-Oxley Act [SOX], a reinsurer told delegates of a PLUS Canada seminar in Toronto.
The U.S. government in 2002 passed SOX, which was intended to improve corporate governance after a series of corporate financial scandals rocked the country (specifically, the financial meltdowns at Enron and WorldCom). Reinsurers note the frequency of D&O claims in the U.S. is down over the past year, although whether that drop is linked to the implementation of SOX remains anyone’s guess. All it would take is one major settlement and reinsurer’s costs might go up, even though the frequency is down, notes Tim McCoy of Signet Star Re in Greenwich, Connecticut, a panelist at the PLUS Canada seminar.

View the Resource

Share or bookmarklet this web page at: