A new updated report from insurance broker Lockton concludes that the “prolonged buyer’s market in the executive risks insurance market may be ending.”
Lockton’s William Boeck, in the U.S. executive risks report, noted: “As 2011 draws to a close, the soft insurance market for financial and executive risk insurance lines is beginning to show its age. Whether the current renewal environment is a harbinger of across-the-board premium increases remains to be seen; however, underwriters are trying to raise them where they can.” However, Lockton added that it “does not foresee dramatic pricing increases in executive risks in the coming year.”
Boeck indicated that premium rates for cyber liability policies remain flat. “While the appetite of some insurers for cyber risks has changed, the continued growth in the number of insurers writing those policies has worked to keep rates level.”
Chris Hewitt, an executive risks expert for Lockton in London observed that the global executive risks insurance outlook remains relatively competitive in his global report. “Outside of the financial institutions arena, the market for D&O insurance continues to be highly competitive,” he stated. “Capital remains freely available.”
Hewit also noted that reinsurers at the recent Rendezvous de Septembre event in Monte Carlo had not given any indication of preparing to increase rates. “Consequently, primary D&O rates can be expected to remain flat for the foreseeable future.”
The Lockton Market Update is available free. The newest update includes reports on 20 insurance and employee benefits markets globally.
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