Directors' and Officers' Liability

2024 looks to be continuing the downward trend in rates that 2023 brought. The premium available in the market continues to shrink forcing even further competition from insurers. We expect as the year progresses, and IPOs pick back up, the premium pool will begin to increase and markets rate will stabilise. This is amidst the backdrop of questions around the D&O market’s current rate adequacy.

The rest of 2024 is expected to show a steadying of premium rates. The new Building Safety Act (BSA) legislation brought in last year will start to impact the D&O space as claims slowly materialise. Whilst there has been no immediate reaction to the BSA changes, insurers are keeping a close eye on any investigations or actions brought by the regulator.

Coverage

We expect coverage to continue broadening as increased competition forces innovative ways to attract clients.

Rating

Rates continue to drop, largely due to the competitive nature of the market.

Appetite

Increased competition has forced insurers to open their appetite to previously excluded activities in the pursuit of portfolio growth.

Capacity

Whilst we don’t expect any further entrants to the market, we are seeing insurers increasing their line size to compensate for the premium rate drops.

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