Directors' and Officers' Liability

The downward trend in rate that we saw in the first quarter of 2024 appears to be continuing into the second half of the year, but with a little less aggression. Premium available in the market continues to shrink forcing even further competition from insurers. We expect as we approach year end, IPOs will start to increase, the premium pool will begin to grow and rates 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 its broadening process as increased insurer competition forces innovative ways to attract clients.

Rating

Rates in the D&O space continue to drop. We expect as the premium pool increases with the pick-up of IPOs that the competition may ease and rates stabilise.

Appetite

The increased competition within the market has forced insurers to open their appetite to previously excluded activities in the pursuit of portfolio growth.

Capacity

We continue to see a significant availability of capacity in the D&O space.

Back to content