marketplace conditions

As has been well-documented (on this site and in various other sources), securities class action frequency has soared to historically high levels in recent years. Given this development, it might reasonably be assumed that D&O insurance pricing has increased to account for the increased litigation risk. However, for a number of reasons – including the continued abundance of insurance capacity – D&O insurance pricing overall has declined. For that reason, it “should come as no surprise” that Transatlantic Reinsurance’s October 2018 analysis of the U.S. public company D&O liability insurance marketplace reveals “price inadequacy” – that is, that the “level of compensation in the market is not commensurate with the risks being taken.” The TransRe report, while technical, illustrates the currently challenging circumstances facing the D&O insurance industry.
Continue Reading Losses Up, Pricing Down: A Tough Combination for D&O Insurers