Negotiable premiums provide a more favourable market for companies seeking D&O insurance
The D&O market shows renewed positivity after a prolonged three to five year trend of premium price increases and tighter underwriting. Insurance incumbents and new players vie for space, with increased capacity and competitive conditions characterising the market.
However, regulatory risks will continue to present challenges for companies purchasing D&O insurance. Key concerns for directors in the professional and financial risk space include cyber resilience, anti-money-laundering compliance, and ESG considerations.
In our Business Insurance Market Conditions and Risk Dynamics H2 2023 report, we review what is influencing the D&O insurance market, insights include:
- Premium rates have stabilised and in many cases reduced, although not to the lower levels seen five years ago.
- Competition is increasing amongst insurers, with a mixture of incumbents and new entrants vying for territory.
- Premium volume has not grown as expected, partly due to businesses reducing their limits, increasing their retentions or removing coverage.
- Regulatory risks continue to pose challenges for directors, particularly in ESG and greenwashing.
Other topics in the report:
- Claims — supply shortages and significant weather events drive up claims inflation rate
- Cyber — risk awareness takes centre stage as breach response resilience is prioritised
- Property — increased rates and variable capacity are becoming the new norm
- Workplace risks — regulators consider tightening measures as the trend towards workers' long-term claims rises
- Marine & cargo — regulatory scrutiny of business ESG credentials to increase
- Energy & renewables — insurer appetite is growing in a period of transition
For more insights on the state of the business insurance market in Australia and risk dynamics, download our full report.
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