Gallagher publishes latest D&O state of the market report

Gallagher publishes latest D&O state of the market report

Gallagher publishes latest D&O market report | Insurance business America

The regions experienced various trends in 2023 and set the stage for 2024

Occupational risks

By Kenneth Araullo

The Directors & Officers (D&O) insurance market witnessed significant changes in 2023, with global markets facing a mix of challenges and opportunities.

Gallagher’s latest report analyzes these developments and provides insights into the regional dynamics and trends shaping the industry’s D&O landscape as we head into 2024.

The report addresses notable trends, developments and obstacles in 2023 while forecasting the potential landscape of the D&O insurance sector for the coming year.

Key topics examined include price fluctuations, capacity adjustments, emergence of new risks and changes in the regulatory environment, all of which provide insight into the current state of the D&O market in different territories.

The global D&O insurance scene is also characterized by regional nuances. For example, the Australian market is highlighted for its competitive nature, while the Middle East is undergoing significant regulatory changes.

Meanwhile, Canada has been recognized for its market stability and the Nordic countries face evolving risks. However, Gallagher noted that each of these regions contributes to a more comprehensive understanding of the forces at play in the D&O industry.

Looking ahead to 2024, the report highlights that the global D&O market will continue to be influenced by various factors. These include geopolitical tensions, regulatory developments, technological advances and the emergence of new risks.

For insurers, brokers and their customers, the ability to adapt through forward-looking risk management strategies, innovative underwriting practices and strategic alliances will be critical. Such approaches are considered essential to effectively master the challenges ahead and exploit the opportunities of the future.

Developments for D&O in the USA

In the United States, the public company D&O market has become more favorable to buyers, evidenced by the entry of over 30 new underwriters amid a decline in IPO activity. This influx has led to more competitive prices and more comprehensive conditions for insured people.

The expected increase in transaction activity could impact securities class actions as regulatory oversight becomes more intense. As government enforcement intensifies, regulators are implementing new rules, including the SEC’s mandatory climate disclosure and requiring public companies to disclose significant cybersecurity incidents.

Such regulatory measures are likely to increase scrutiny and enforcement actions against directors and officers of public companies. In response, insurers in the US and London are developing a product to cover investigations against corporate entities.

Gallagher’s report highlights the diverse factors affecting the D&O insurance market in different regions, from pricing dynamics and capacity changes to emerging risks and regulatory developments.

As we head into 2024, these insights are likely to prove crucial for stakeholders to navigate the evolving landscape and take advantage of new opportunities in the D&O market.

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2024-04-02 15:13:16