Insights

Looking Ahead to 2017: D&O Considerations and Coverage

October 18, 2016

Management Liability/D&O

Read Looking Ahead Now

As we approach the coming year, one of Woodruff Sawyer’s goals is to equip directors and officers with the data and information they need to make smart decisions about their D&O insurance renewal in 2017.

In the latest edition of the annual “Looking Ahead” interactive guide, which you can view at the bottom of this post, you’ll gain instant access to:

  1. Trends and analysis of D&O insurance in the US and abroad;
  2. Insights on what’s happening with D&O insurance in specific industry sectors and for various company stages;
  3. A look at insurer consolidations in 2016, and how it impacted the market;
  4. How D&O coverage has changed in the past year for better risk management—and what’s missing;
  5. What impact current events like Brexit have had on the market;
  6. Retention and pricing trends, and D&O insurance renewal strategies; and
  7. The hot topics thoughtful directors and officers will address in 2017 to mitigate risk in the coming year.

D&O Insurance Trends

The soft pricing cycle for D&O insurance that began in 2015 has continued through 2016. Many D&O buyers—particularly in business sectors favored by insurance carriers—are enjoying decreasing premiums.

D&O Renewal Rates 2016

Insurance premiums are driven in part by the supply and demand of capital.  Demand for D&O insurance has remained relatively consistent. Supply, on the other hand, typically has a more interesting journey for D&O insurance. For example, years in which there are major natural catastrophes can pinch the supply of D&O insurance.

While it may seem like natural catastrophes and D&O insurance have nothing in common, many providers of D&O also sell property insurance.

Also in 2016, we saw consolidations of insurers like Ace’s $29.5 billion acquisition of Chubb. Some thought this would stabilize premium decreases, but that didn’t happen. Instead, new players were attracted to and entered the D&O insurance market, once more bolstering the capital available to insurance buyers.

In the Looking Ahead guide, we also cover hot issues like director and officer compensation, securities class action activity, whistleblowers, cyber liability and much more; and you’ll get my take on the most important conversation to have with your broker ahead of your 2017 D&O insurance renewal.

Read The D&O Looking Ahead Guide Here

 

 

 

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All views expressed in this article are the author’s own and do not necessarily represent the position of Woodruff-Sawyer & Co.

Priya Cherian Huskins

Senior Vice President, Management Liability

Editor, Management Liability/D&O

Priya is a recognized expert and frequent speaker on D&O liability risk and its mitigation. In addition to consulting on D&O insurance, she counsels clients on corporate governance matters, including ways to reduce their exposure to shareholder lawsuits and regulatory investigations. Priya serves on the board of an S&P 500 public company and a large private company and has an impressive list of publications, speaking engagements, and awards for her influence and expertise in the industry. 

415.402.6527

LinkedIn

Priya Cherian Huskins

Senior Vice President, Management Liability

Editor, Management Liability/D&O

Priya is a recognized expert and frequent speaker on D&O liability risk and its mitigation. In addition to consulting on D&O insurance, she counsels clients on corporate governance matters, including ways to reduce their exposure to shareholder lawsuits and regulatory investigations. Priya serves on the board of an S&P 500 public company and a large private company and has an impressive list of publications, speaking engagements, and awards for her influence and expertise in the industry. 

415.402.6527

LinkedIn