Allianz targets D&O marketplace.

• Position: Business Briefs

The drumbeat of corporate scandals, earnings woes and slumping stock prices has put untold executives and directors on the hot seat. Directors and officers' insurance has become more scarce and far more expensive, with many premiums doubling and tripling last year.

As many rivals have pulled back in the face of huge potential claims pay-outs, Allianz Insurance Co. is pushing ahead. The German-based giant's American arm has created a startup led by industry veterans, consolidating operations and underwriting authority in its Chicago and New York offices to ensure responsiveness and speed decision-making. And in a market that has historically relied largely on instinct to judge risk, it claims to be pioneering the development and use of analytical tools.

"We see a tremendous opportunity to provide D&O coverage to larger public companies using an innovative yet disciplined approach," says Donald Bailey, Allianz Global Risks U.S.'s senior vice president of the specialty products group. Allianz has its...