As the international financial crisis creates continued uncertainty for businesses, directors and officers of U.K. companies are likely to feel an increased need for insurance protection.

This prediction comes from Dan Holloway, U.K. D&O product manager for Ace European Group Ltd. "I think that in the U.K., it's fair to say that we're in an ever increasing litigious environment," Holloway said in a telephone interview.

While Holloway is not convinced that the United Kingdom faces an avalanche of U.S.-style litigation from investors disaffected by the actions of company management, he does note that changes in U.K. company legislation mean that company directors will come under closer scrutiny. And it has become easier for plaintiffs in the United Kingdom to obtain funding for lawsuits from specialist providers. There is a potential for lawsuits, he said, when it "doesn't cost anything for the plaintiffs to bring a claim."

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