2021 Market Conditions Report: Public Company D&O

Author: Phil Norton

As this year begins, our forecast regarding the state of the Directors and Officers (D&O) marketplace in 2021 is for another year of similar hard market challenges and large increases, though with real improvement compared to 2020. Recall that 2019 was a firming market with consistent but smaller price increases, and little differentiation by industry sector. Then the marketplace accelerated into 2020 and COVID-19 further exacerbated the situation as it brought on additional strain and financial stress, cementing hard market conditions.  The difficulty of your D&O renewal was suddenly more aligned with your industry than ever. While carriers expect that 2021 is more of the same, including substantial increases in D&O premium, we at Gallagher clearly think that this is not the whole story as increases should be less in 2021. 

Explore how our experts assess the current hard market conditions for public company D&O liability and forecast 2021 and beyond.

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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.

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