The directors and officers liability (D&O) insurance market saw a significant shift in 2021. Although the first half of the year saw a continuation of the difficult conditions experienced in 2020, pricing for D&O insurance started to improve in the second half of the year.
During 2021, D&O insurers, whether new or old, used the term “rate adequacy” to describe the state of pricing in the market. According to Marsh data, pricing is higher now than in 2002, arguably the last hard market year. This may be due to the increasing claim costs. However, the current pricing environment is attractive to many insurers, creating real competition in many areas of D&O insurance.
Preparing for your renewal in advance remains a priority. Your risk advisor is well placed to assist you to navigate a path forward.