Majority of D&O policyholders see H1 price decreases: Report
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Pricing trends for directors and officers liability insurance “flipped” during this year’s first half, with most policyholders seeing price decreases, which was a switch from the second half of 2021 according to a report released Tuesday by Woodruff Sawyer & Co.
In this year’s first half, 69% of Woodruff Sawyer’s policyholders saw a premium decrease. That compared with the 70% that experienced an increase during last year’s second half, according to the broker’s annual report on the sector. It said it expects the trend to persist into next year.
Woodruff Sawyer said the decreases were most dramatic in the life science, technology and initial public offering segments, which were significantly impacted by the earlier hard market.
The report said market-leading insurers are responding to new entrants in the public D&O marketplace by reducing premiums to retain clients.
Some policyholders did experience rate increases in this year’s first half, but the median increase of 8% was down sharply so far this year from 14% in 2021, the report said.
