D&O (Directors and Officers)
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Renewals with flat or increased premiums are on the rise, however.
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Expansion of the middle-market book is an ongoing focus.
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However, the market is still struggling with excess capacity and low demand.
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Securities class actions are a perennial source of claims for D&O insurers.
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Q2 was the ninth consecutive quarter of year-over-year price decreases.
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Pearce brings 25 years of experience with a background in the A&E sector.
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In 2023, the segment had its best direct loss ratio in nearly a decade at 50.8%.
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The new offering is an admitted product for SMBs and non-profits.
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Loss picks for other liability are at a 23-year high, but that still may not be enough.
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As the industry gathers in San Diego, these are the key discussion points.
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Rooker joined the Texas brokerage in 1999, while Schramm joins from CNA.
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Michael Smith is a former mortgage broker.
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The policy offering expands third-party liability coverage and wage and hour liability.
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Prices for programs that renewed in both Q1 2023 and Q1 2024 decreased 15%.
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The hire comes after the company’s recent rebrand from Capitola Insurance.
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The executive has been with Zurich since 2018.
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The plaintiffs – three former claims adjusters – were each awarded $25mn in punitive damages.
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The US regulator faces litigation from both sides of the climate issue.
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A total of 30 carriers entered the US public company D&O space in 2023.
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Chres Lee was previously M&A counsel for Liberty Global Transaction Solutions.
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Given ample capacity and no sharp increase in demand, a market sea change is not expected, barring an unforeseen economic event.
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WTW said the rise of the risk from health and safety was “surprising”.
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This continues a consecutive quarterly gain of over 6%.
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Executives at D&O Plus said the pain from deploying those limits is being felt.
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The ratings agency said growing competition has led to lower pricing.
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The broker has been adding to its capabilities in the region.
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The pace of price decreases has eased since Q2 last year.
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The percentage of cases that could lead to higher losses increased in 2023.
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This publication recently noted that ongoing rate declines and questions about past accident years are leading to calls for D&O price discipline.
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Frequency and severity are both ratcheting up at a time when there are already questions about rate adequacy.
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Directors and officers face an increased risk of litigation next year, according to a report.
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Issues over reinsurance pricing and capacity continued to plague commercial property.
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Distinguished will initially offer a true follow-form excess product covering D&O, employment practices and fiduciary liability for public, private and non-profit risks.
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A-Star offers up to $80mn in additional capacity for D&O liability insurance.
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The decline marked the sixth consecutive quarter of double-digit pricing declines.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The executive said that NA financial lines rates and pricing in aggregate were down 4.8% and 3.8%, respectively, in Q3 as Chubb is trending financial lines loss costs at 4.7%.
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Ongoing rate declines have been seen in recent renewals though the pace of decreases, particularly for established public companies, has slowed.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Q2 marked the 23rd consecutive quarter of year-over-year property rate increases, with rates rising 21% on average and further increases expected for the rest of the year.
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Nearly half of the over 300 small business owners and CEOs surveyed say the US economy has improved.
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A summary of commentary from the first day of Inside P&C New York, with insights on capital raising, E&S and reinsurance expectations.
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Cyber is another market Axis is watching closely, given new MGA entrants as well as the recent rise of ransomware activity, with the carrier expecting more “undulation” as a result.
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It is more dependent on property, and its longevity is uncertain.
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Earlier this month, Inside P&C revealed that the underwriter hired ex-Ascot EVP Becker and a team of four executives to spearhead the Aquiline-backed MGA’s entry into D&O.
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Inside P&C’s news team runs you through the key highlights of the week.
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Rate declines have not been as pronounced in private D&O, though competition is increasing.
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Sources said SVP Crystal Greene along with VPs Carol Smith and Devon Lay and assistant underwriter Maggie Holland are joining Distinguished’s new D&O unit.
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Average renewal premiums decreased 20% to 30% over the previous year’s price, with some public companies posting premium falls of 50% to 60% in the past 18 months.
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Some 81.5% of policies renewed with the same limit and deductible, marking a return to historic levels after bottoming out in Q3 2020. Among those policies, the average price decrease was 13.8%, while the average price increase was 30.2%.
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The underwriter has previously worked at AIG, Chubb and Markel.
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The hard reinsurance market and elevated cat losses continued to drive rate increases.
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The broker said clients could save money, increase limits and buy extra coverage.
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The primary layer of $10mn was written by Chubb. The policies cover the period from August 1 2022 through August 1 2023.
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He will be based in Connecticut and report to Alex Blanco, Vantage's chief executive, insurance.
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Speaking about the recently spun-out HNW MGA, Zaffino said AIG expects to bring on additional capital providers to the subsidiary through H2 2023.
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The scale of reductions is increasing as the class of business experiences its fourth consecutive quarter of rate falls.
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Inside P&C’s news team runs you through the key highlights of the week.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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An uptick in financial markets activity could increase demand, but there is also significant risk which currently isn’t priced into the market.
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D&O (Inside P&C Daily lead story): There is hope that public D&O rates could stabilize in the second half of the year following a tough end to 2022 and an ongoing slump in Q1. Significant discounts granted in 2022 are unlikely to be repeated, and there are ongoing concerns around both economic and social inflation, sources said. In the meantime, rates remain pressured from ample capacity and muted demand as established providers and incumbents drawn to the hard market of past years compete for relatively stagnant demand. The collapse of SVB, while a shock, wasn’t the inflection point for D&O that some might have expected.
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The WTW D&O liability 2023 survey canvassed directors and risk managers in 40 countries around the world.
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High capacity and an ongoing faith in the financial system have mitigated against instant action from insurers.
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WTW’s survey cites regulatory risk, health and safety precautions and bribery and corruption on the list of top D&O risks.
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The US continues to experience catastrophic flash flooding and heavy rainfall events that are impacting “inland” areas across the country, as well as coastal areas.
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D&O underwriters, as well as financial institution insurers supporting startups and venture capitalists, could have faced “financial distress” without government intervention.
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Costs of defending and settling lawsuits are likely to fall on the bank’s D&O insurers.
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Experts at the Plus D&O symposium took a deep dive into the issues and uncertainties affecting the D&O market as rates soften.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The market has quickly moved away from dramatic hardening in 2020 and 2021 following an influx of capacity.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Chubb’s balanced view of the market as a whole, and pricing and loss cost trends in particular, puts it ahead of the curve on value creation, despite a difficult economic backdrop.
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Established players are walking away from writing IPO, SPAC and de-SPAC accounts as increased capacity and falling demand in the sub-class causes rates to crater.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Companies will also face claims relating to cyber security and problems with ESG disclosures.
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The broker said a dearth of IPOs had created a “buoyant environment”, with both start-ups and incumbents competing.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The business line’s premium increases this year were less pronounced than in 2021, when quarterly renewals were in the 50%-200% range.
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Inside P&C’s news team runs you through the key highlights of the week.
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In Q3, 46% of primary policies renewing with the same limit and deductible received a price decrease, while 16% received a price increase, according to Aon.
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The declining number of IPOs has reduced demand for public D&O cover and created competition, but current rates may not adequately price the risk, the executive said.
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The 222-page complaint describes fraud committed against various carriers, including Zurich, Tokio Marine and Everest in surety, D&O and homeowners’ insurance programs.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The shift impacted IPO, life science and technology companies the most – those that were hit hardest by the upward D&O insurance pricing trends in years past.
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Inside P&C’s news team runs you through the key highlights of the week.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Sources noted that competition has expanded from excess layers into the primary market – and that has been a major development since the beginning of the year.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Cyber continued to register the largest increase in the period, while D&O saw a small price drop compared to a moderate increase in the previous quarter.
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Ryan Specialty president Tim Turner said that the overall flow of submissions into the excess channel “continues to grow at a record pace” with no signs of slowing down.
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Inside P&C’s news team runs you through the key highlights of the week.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Public companies’ primary prices renewed with the same limit and deductible were down 0.5% year on year in Q2 2022, marking the first decline in 17 quarters.
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The broker noted that a few market sectors such as life sciences will see healthy decreases, often around 20%, along with improved retentions and coverage.
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The downward trend of securities class actions against public companies is expected to continue in 2022, with the annual filings projected to drop by 7% this year, Woodruff Sawyer said.
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The policy, which Beazley claims to be the first of its kind in London and the US, will offer $10mn of capacity.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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On the property side, the costs for rebuilding a structure continue to climb and could prove to be prohibitive.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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A Howden report on the D&O market shows that clients “heavily penalised” for Covid-19 exposures have seen “meaningful rate reductions”.
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The figure marks a slowdown from the last three quarters, when price increases registered at 3.7% in Q4, 7.3% in Q3 and 14.2% in Q2 2021.
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Inside P&C’s news team canters through the week’s key developments.
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Conditions for SPAC D&O are likely to remain turbulent, amid the heightened SEC scrutiny and uncertainty concerning claims resolution.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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Cyberattacks and data losses were the top risks with 65% and 63%, respectively, followed by cyber extortion and regulatory threats with 59% and 49%.
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The executive – whose new venture wrote $230mn last year – is skeptical about the long-term future of MGAs in the D&O and casualty spaces.
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