What Does 2023 Have in Store for Directors & Officers Insurance?
The years prior to 2022 were tough for the directors and officers (D&O) liability insurance segment, which were characterized by double-digit rate increases and lowered capacity. Market conditions in 2022, however, proved more favorable than the years prior.
While conditions proved more favorable, the benefits were largely determined by what type of company you operate:
- For publicly-traded companies, rate increases and retentions moderated substantially. Some even saw rate decreases.
- Private and non-profit companies, deemed higher risk by insurers than publicly-traded counterparts, showed signs of rate stabilization.
How is the directors and officers (D&O) liability insurance segment changing in 2023?
For starters, there are new market entrants and, therefore, increased competition. D&O insurers have also broadened their underwriting appetites by quoting additional layers of coverage, offering higher limits and undercutting competitors to attract new business.
Industry experts anticipate that favorable market conditions will press on, paving the way for further premium stagnation and potential rate decreases.
While premium stagnation and potential rate decreases may be on the horizon for the D&O insurance segment, it’s important to stay informed on the developments and trends unfolding in the market.
You can find more information about these trends in our 2023 Market Outlook: Directors & Officers Insurance (D&O) Edition here. There are also practical tips for buying D&O insurance this year.
Contact Burnham WGB Insurance Solutions
You don’t have to navigate D&O liability insurance on your own. Our Commercial Risk Management Advisors are here to help. Please feel free to contact the insurance and risk management experts at Burnham WGB for assistance or to get a competitive quote.