Munich Re's new D&O app lets managers assess themselves
In the course of their work, decision-makers in companies are increasingly having to deal with law suits. With a new app, the Munich Re D&O Scout, managers can now quickly gain an overview of their personal risk.
Munich. The app provides background information on directors' and officers' liability (D&O). In addition, the interactive application asks about and evaluates the most important factors that influence a manager's risk. After completion of the survey, the manager receives a general assessment of his/her risk – personally and discretely. In a game-like test of knowledge, the manager can uncover any information gaps. A glossary leads the user through the jungle of specific terminology. And, not least, the user finds contact information for specialised primary insurers with global know-how. Here competent advice is available, tailored to the manager's individual situation.
Not only top managers of corporations listed on the stock exchange are exposed to the risk of being sued for actual or presumed managerial error, but also owners or managing directors of medium-sized companies or even family businesses. Shareholders, employees, regulators, clients and competitors are increasingly taking legal action to hold decision-makers in companies liable for their decisions. The multitude of laws and regulations make it difficult for directors and officers to constantly keep an eye on all legal requirements, and particularly so, if a company operates internationally or globally. The risks become particularly great for decision-makers with company takeovers. Wrong decisions or wrongful acts can be very costly to those affected. To counter this risk, members of boards of management or supervisory boards can conclude D&O policies. In addition to covering legal defence costs, they also insure compensation payments. Many lawsuits filed for D&O claims are settled out of court. This makes the selection of an insurer with a good rating, specialised know-how and a competent claims department especially important. The range of possible compensation payments is wide, from low single-digit to mid-triple-digit million dollar amounts.
The D&O app is no substitute for expert advice from lawyers and primary insurers. However, it provides a basis for managers to familiarise themselves with the subject matter, in order to seek tailor-made insurance protection.
Munich Re D&O Scout is available free of charge from the Apple App Store here. An Android version, to be offered via the Google Playstore, is under development.
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.