Directors and Officers Liability Insurance Market Update - 2018
The insurance market in Australia for professional indemnity, directors and officers liability and financial institutions is more challenging than it has been in the past decade. Driven by an abundance of claims, the number of claims and reported circumstances are exceeding the total insurance market premium pool by a significant margin. Some leading insurers have struggled to adjust to the current market and economic conditions and are either seeking to mitigate their exposure via reduced capacity or elevating their attachment points. In some cases, insurers are electing to exit market segments altogether.
Notably, buyers that operate in sectors now deemed medium or high hazard are facing insurers exerting significant pressure for higher deductibles and premiums to be applied on both renewal and new business.