Foreign companies listed in the U.S. are facing rising costs for insurance covering directors and officers, propelled by the increasing number of lawsuits. The number of class action lawsuits filed against foreign companies, however, rose 39% to 47 in 2018. The dollar amount of settlements for both foreign and domestic companies in 2018 rose 71% to $2.4 billion from $1.4 billion in 2017, according to Woodruff Sawyer. “The cost of D&O insurance is on the rise for foreign filers and often in a dramatic way,” Ms.Huskins said, estimating that premiums have increased anywhere between 6% and 30%. Ms. Huskins said the disparity in premiums paid by domestic and foreign companies stemmed from insurance providers systematically underpricing the risk associated with foreign U.S.-listed companies for several years.

Source: Wall Street Journal April 15, 2019 09:22 UTC