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Directors and officers' (D&O) liability cover may be easier to access for some business sectors, according our Specialty Management Liability Insurance Global Market Update, August 2022. The report notes some movement in D&O pricing during the first half 2022, driven by increased market competition and some new entrants to the market.
There have been some significant reductions in premium and increases in limits, and these are especially welcome in a period of rising costs elsewhere in clients' operations or supply chain and a D&O costs hike in the past few years.
This half year 2022 report comprises 3 approaches that provide an overview of the trends and influences on the D&O insurance market.
The report outlines D&O conditions for 5 key market sectors, here is a quick summary:
Australia — there are positive indications of easing in availability and pricing as new D&O insurance market entrants offer fresh capacity to companies in need of options. While heavy pricing increases in recent years are easing, the business's risk management narrative remains all-important to securing the best outcome for clients, with environmental, social, and governance (ESG) risks needing particular care. Other regions covered by the report include Canada, the United Kingdom and Europe, South Africa and the United States.
The report concludes with 3 case studies illustrating Gallagher solutions for clients from different sectors facing D&O challenges and how Gallagher was able to achieve savings on premium, increases in limits, broader scope of cover.
As the current conditions of spiralling inflation are yet to impact insurance providers, combined with D&O claims being long tail by nature, the pricing we are seeing is likely to remain unaffected for now, so it's a good time to work with a broker who understands the market and may be able to secure more beneficial terms on premiums.
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