Insights

2020 D&O Insurance Trends: A Looking Ahead Guide

September 10, 2019

Management Liability/D&O

The market for D&O insurance is in the midst of a fundamental reset, and the current hard market shows no signs of softening anytime soon. Due to factors that include the increased frequency and severity of security class action suits, the public D&O landscape has been deteriorating in the eyes of carriers for several yearsand as predicted in the 2019 Looking Ahead Guide, the result is higher D&O premiums and self-insured retentions (SIRs).

Our seventh annual D&O Looking Ahead Guide is full of timely information and useful advice, and intended to help our clients plan for their 2020 D&O insurance renewals.

In the 2020 Guide, D&O carriers including AIG, AXA XL, Chubb, Lloyd’s, Tokio Marine HCC, Old Republic, and Great American, along with Woodruff Sawyer’s own experts, weigh in on everything from pricing and retention trends to hot topics important to directors and officers right now.

Hot Topics

The Looking Ahead Guide keeps directors, officers, and risk managers ahead of the curve when it comes to D&O liability issues that corporations are facing today.

These emerging issues and lessons learned can spark conversations regarding how your organization might avoid or handle these tricky situations should they confront your company.

Here are a few of the hot topics we’re focused on right now:

Securities Class Action Lawsuits Up 105%

In the last 10 years (through the end of 2018), the rate of securities class action suits filed against public companies has more than doubled—up 105%. If litigation in the second half of 2019 continues at the same rate as the first half, that percentage will jump to 151%.

Derivative Suits—An Increasing Threat for Directors and Officers

Derivative suits—breach of fiduciary duty suits brought by shareholders on behalf of a company against the company’s directors and officers—are an increasing problem. These suits are especially threatening for directors and officers because companies cannot indemnify their directors and officers for these settlements. Read more in the Guide.

Cyber Stumbles—New Targets in 2020

When it comes to the board’s role in cyber-risk oversight, the pressure continues to mount as the stakes get higher in terms of regulation and litigation. 

More Hot Topics

Underwriters Weigh In

Our 2020 Guide once more includes the popular “Underwriters Weigh In” section in which we compile the results of our annual survey of top D&O insurance underwriters. We surveyed 34 insurance carriers about the current risk environment, risk appetite, and future pricing expectations.Their answers provide insight as to what we can expect from the D&O insurance market in 2020. 

Is D&O risk going up?

For the third year in a row, underwriters see D&O risk increasing, and they are not optimistic about the prospects for an improving litigation environment. Check out what they thought about quoting stand-alone Side A insurance and whether companies are as aware as they should be about the risk and cost of D&O litigation. 

What else is in store for D&O liability and insurance? Get instant access to the full interactive guide below, or download the pdf:

Have questions regarding your D&O insurance renewal?

Please contact us with any questions or comments: LookingAhead@woodruffsawyer.com or any of the authors in the Guide.

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See all articles by Priya Cherian Huskins, Esq.

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