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Directors and Officers Liability Insurance 2019 Pricing Index

From office closures and difficult staffing decisions, to disruptions to supply-chains and declines in demand, senior managers have had, and continue, to contend with various financial and operational issues as a result of the Coronavirus pandemic.

Amongst the many risks being faced, those associated with directors and officers (D&O) liability* are important to consider. To support and help you understand this topic, we'll be producing a three-part article series exploring D&O.

This first article in the series provides a market overview of D&O through the Directors and Officers Liability Insurance 2019 pricing index. The report, published by our colleagues in Marsh's Financial and Professional Liability (FINPRO) team, explores the pricing trends by segment, sector and programme component.

Directors and Officers Liability Insurance 2019 Pricing Index overview

Pricing for commercial directors and officers liability (D&O) insurance in the UK increased nearly 50% on average in 2019, according to analysis by Marsh JLT Specialty. This followed a 35% pricing increase in 2018. The increases accelerated in the second half of 2019 and show no sign of slowing in 2020. 

The Directors and Officers Liability Insurance 2019 Pricing Index uses placements from the Marsh UK team and subsequently processed by the data and analytics team. The index currently contains over 2,340 D&O insurance programmes. You can view the video below.

The full report provides additional data and commentary on 2019 pricing changes for different segments, including analysis of pricing for FTSE 100 and FTSE 250 companies. And explores how pricing of the primary, excess and Side A Difference in Conditions components of D&O programmes has changed over time.

DOWNLOAD THE FULL REPORT.

If you would like to know more about director's and officers' liability, visit our dedicated web page here. For more information related to the COVID-19 pandemic, please visit our Coronavirus Resource Centre, which is updated regularly with the latest information and advice on the situation.

*Director's and Officers' liability (D&O) covers you personally for defence costs incurred during a claim and awards made against you. For example, the costs associated with defending trading standards, environmental or other regulatory claims against you; claims by individual shareholders (including other directors); defence costs and awards of claims arising from your personal involvement with the administration of any company pension.

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Webinar: Considerations from a D&O perspective.

Join our colleagues in Marsh for a 45-minute webcast on Wednesday 27 May at 15:00 to hear commentary on the state of the market, the impact of COVID-19, and their thoughts regarding the liability exposures faced by senior executives.

Stephanie Manson
Management liability chief client officer and head of D&O product Marsh JLT Specialty.

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