Financial and professional lines continue to decline
Financial and professional lines rates declined 4%.
- Competition in the public directors and officers (D&O) liability space continued; many clients realized premium savings and/or negotiated enhanced coverage.
- While the overall employment practices liability (EPL) market stabilized in 2023, claims related to the state of Illinois’ Biometric Information Privacy Act (BIPA) were a growing insurer concern.
- Some insurers have added BIPA claim exclusions to EPL policies, some limit the use of exclusionary language only where there is Illinois exposure, and some seek to apply exclusions more broadly.
Cyber coverage continues to broaden
Cyber insurance rates increased 3%.
- New capacity entered the market for both excess and primary layers; excess layer premium reductions drove total program pricing down.
- Coverage generally continued to broaden, including removal of coinsurance requirements and increasing sub-limits for coverage enhancements.
- Insureds with improved cybersecurity controls were generally in a stronger position to negotiate lower retentions.