UK Directors and Officers Liability Insurance 2021 Pricing Index

Marsh Specialty has published the UK Directors and Officers Liability Insurance 2021 Pricing Index.

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.

The Index dives deep into what the past year has looked like, and why for:

• FTSE 100 companies.
• FTSE 250 companies.
• Public-US exposed companies.
• Public non-US exposed companies.
• Private companies.

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.