The 2024 Executive and Financial Risk Practice Market Conditions report indicates that the challenging conditions seen three to four years ago have started to ease. Most classes of business within the practice are expecting flat to continued decreases in rates for the coming year, depending on the risk and line of coverage.

The downward pressure on pricing is attributed to an increase in capacity, particularly in public company Directors and Officers (D&O) Liability insurance. This increase in capacity offers relief to buyers, allowing for more competitive pricing and better renewal terms and retentions. It's advised to start discussions early and work with a specialty broker to accurately present the risk profile to the market.

Emerging areas to watch out for include claims involving chief information security officers for poor cyber hygiene/controls resulting in cyber incidents, as well as violations of the Biometric Information Privacy Act (BIPA) potentially impacting Employment Practices Liability, Cyber, and D&O policies. There's also an uptick in the sophistication of social engineering attacks driven by artificial intelligence, highlighting the need to understand how coverage will respond and structure programs for broad protection.

While the market is providing some relief, there's no room for complacency. Securities class action claims, economic conditions, boardroom oversight, an uptick in derivative claims and settlements and regulatory environments remain key issues. Carriers are still adapting to advancing technologies and novel cyber attacks in the Cyber insurance space, with reinsurance playing a crucial role.

Get our full report to find out the current state of the market and what we anticipate in 2024 for the following lines of coverage:

  • Public D&O
  • Private D&O
  • Fiduciary
  • Employment Practices Liability
  • Crime
  • Cyber
  • Kidnap and Ransom

Given the nuanced nature of this market, it's essential to work with an insurance broker specializing in the specific line of coverage. Gallagher is highlighted as having a vast network of specialists who understand various industries and can provide tailored solutions for specific challenges.

Disclaimer

The information contained herein is offered as insurance Industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication is not intended to offer legal advice or client-specific risk management advice. Any description of insurance coverages is not meant to interpret specific coverages that your company may already have in place or that may be generally available. General insurance descriptions contained herein do not include complete Insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. Gallagher publications may contain links to non-Gallagher websites that are created and controlled by other organizations. We claim no responsibility for the content of any linked website, or any link contained therein. The inclusion of any link does not imply endorsement by Gallagher, as we have no responsibility for information referenced in material owned and controlled by other parties. Gallagher strongly encourages you to review any separate terms of use and privacy policies governing use of these third party websites and resources. Insurance brokerage and related services provided by Arthur J. Gallagher Risk Management Services, LLC. (License Nos. 100292093 and/or 0D69293).

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