Directors and Officers Liability: UK FTSE 350 Market Update, H1 2020
The difficult market conditions for commercial directors and officers liability (D&O) insurance seen at the start of 2020 continued and increased in the second quarter. Insurers became increasingly concerned not just with historic sources of D&O claims, but with new exposures that may result from COVID-19. This caused a dramatic increase in pricing for FTSE 350 purchasers of D&O insurance over the first half of 2020.
Increasing D&O Pricing
In the first half of 2020, on average, FTSE 350 companies experienced D&O insurance premium increases of 178%. This dramatic increase was the result of a combination of factors. D&O insurers continue to re-price their portfolios after numerous years of making losses. In many cases, insurers are completely re-pricing risks on renewal using new rating models, making year-over-year comparisons extremely high.
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