Search
 
Analysis

Three trends increasing D&O insurance rates

D&O insurance carriers increased rates in 2019 and are continuing to advocate for future rate hikes. Here’s why.

By Rachel Soich | October 30, 2019 at 06:00 AM
EPLI and D&O insurance coverage go hand-in-hand, as many sexual misconduct cases reveal company leadership’s effort to cover up the events to preserve their reputation. (Graphic provided by Milliman) EPLI and D&O insurance coverage go hand-in-hand, as many sexual misconduct cases reveal company leadership’s effort to cover up the events to preserve their reputation. (Graphic provided by Milliman)

Directors and Officers (D&O) insurance has experienced significantly increased risk exposure in recent years. In 2017, insurers experienced the largest loss ratio increase since 2011, but rates remained competitive due to a large number of insurers in the market. This year, however, most insurers say risk is increasing, and D&O insurance rates did in fact rise in the first quarter of 2019.

Due to the growing instability of D&O coverage, rate increases are expected to continue. This is primarily due to three rising risks: increased securities action lawsuits heightened awareness to social issues like #metoo, and growing cyber risks and data protection laws.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

Recommended Stories

Defining an occurrence in insurance

Defining an occurrence in insurance

Karen Sorrell, CPCU |

Even though the term "occurrence" is defined, disagreement over its meaning has led to conflicts between insurers and insureds; often resulting in litigation.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.