As we approach the state of commercial real estate market for 2019, the big question seems to be, “What is your perspective?” – ‘headwinds’ of a ten year cycle of an economic expansion or ‘tailwinds’ that the best is yet to come.
1 - 10 of 142 items [Currently showing All Items in Management Liability]
One of the thorniest issues in directors and officers (“D&O”) liability insurance is “capacity.” D&O provides financial protection for directors and offices, only when they are acting in that specific capacity. Often, the insurance grant will limit coverage to actions “solely” related to the insured capacity.
Fiduciary Liability renewals were stable in 2018, and this coverage line continues to be the least affected in Management Liability. There have been sizable fiduciary liability settlements in the past 24 months that are noteworthy. We anticipate a minor impact in the market condition as markets begin to adjust for loss trends across all management liability lines.
The United Kingdom, especially London, has historically been an insurance hub,especially for management liability coverage. During the U.K.’s time in the European Union, its market grew considerably, thanks, in part,
As we look to forecast the state of the D&O marketplace in 2019, there is plenty of data to review and much of it is noteworthy. If 2017 was a year in flux, then 2018 began to turn the corner into a market with dramatically more underwriting discipline and backbone than anything in the previous 10 years outside of the financial and homebuilding sectors during the most recent financial crisis.
The marketplace for Kidnap and Ransom (K&R) insurance remained stable and competitive through 2018. Premiums are as low as $400 per million limit for companies with limited foreign exposure (locations or travel). For companies with higher exposures including foreign travel and locations, premium is around $1,000–$3,000 per million of coverage limit. Coverage is broad, but broker expertise is needed to ensure the policy contains all applicable enhancements, such as Workplace Violence, Child Abduction and Cyber Terrorism.
As we head into 2019, the current state of the R&W insurance market remains very strong. Over the past twelve months, we witnessed continued growth in the use of R&W insurance as it has moved from commonplace to the norm in M&A transactions.
The private and nonprofit D&O marketplace for 2019 has continued the trends of 2018 and can best be described as fragmented. Most insureds experienced flat renewals in 2018, as evidenced in graph 1, with rate changes from -9% to +9%.
Overall, the Commercial Crime insurance market remains stable with relatively flat renewal premiums. That said, insurers are attempting to charge for significant ratable exposure growth.
2018 was another year of continued consolidation and turbulence in the U.S. healthcare industry. M&A continues at a very brisk pace; maintaining the aggressive trend of over 220 M&A deals per quarter, as has been the case for the past several years, according to Health Research Institute at PricewaterhouseCoopers. This pace of transactions has resulted in an uptick of both new growth opportunities and heightened risk in all areas of the U.S. healthcare industry.