D&O Insider Trading Audit Reports Application  

Your process of underwriting Director and Officer Insurance wouldn’t be complete without fully analyzing a company’s pattern of Insider Trading. That’s why skilled underwriters know to pay attention to Insider Trading when writing new D&O Insurance policies, because they know that suspicious Insider Trading patterns represent serious litigation risk. That’s why we’re leveraging our high-quality Insider Trading data to make it easy for professional liability insurance underwriters to properly incorporate Insider Trading into their processes.

D&O Insider Trading Audit Reports is an online application designed to allow underwriters to easily and accurately assess risk related to Directors’ and Officers’ stock trades in their own companies. The online application cuts through the noise to reduce complexity and can be customized to fit existing processes and workflow.

Application Features     

• Easily access comprehensive reports for US public companies, and save, print, or email the reports with one click)
• Visually identify transactions made during risky periods (prior to earnings, before large price movements)
• Quickly see insiders’ use of automatic (10b5-1) trading plans
• Get detailed summaries about individual’s transaction history, including links to source filings
• View a company’s corporate insider roster and each insider’s current stock holdings
• Quickly access reports for related companies to compare behaviors
• Reach out to us today for a free trial!

Incorporating Insider Trading    

Directors and Officers Insurance protects a company from the legal exposure related to alleged wrongful acts by members of their executive leadership. For public companies, directors and officers may be held liable if they materially damage the corporation through negligence, failure to disclose conflicts of interest, or by deceiving shareholders. These lawsuits are often brought by a company’s shareholders, because actions taken by directors and officers had a materially adverse effect on the company’s share price. A 2011 survey by Towers Watson found that 69% of publicly traded companies had a claim brought by shareholders between 2001 and 2011.

When underwriting Directors and Officers Insurance, analyzing past Insider Trading activity is important because you can uncover patterns of risky or cautious trading behavior. If insiders at a company tend to sell large amounts of stock in discretionary transactions before drops in share price, it may signal that insiders are routinely front-running negative corporate announcements. Significant and suspicious Insider Trading can hurt a company’s cause in future litigation, and thus needs to be priced into any D&O policy. Conversely, companies with strict guidelines and non-suspicious trading behaviors may make a company more attractive to insure. In all cases, Insider Trading data helps Director and Officer Insurance underwriters make informed decisions when writing insurance policies.

Custom Reports

We can provide custom reports and web applications to best suit your workflow. Please contact us for more information.