D&O Insurance Pricing Trends 2019

| March 14, 2019

article image
D&O insurance pricing has flown under the radar for several years, with decreasing premiums and increasing market capacity.  But if industry expert projections hold, those days may be coming to an end. In the past, D&O insurance may have been purchased as an afterthought for some companies. Seemingly low risk coupled with affordable premiums, made purchasing a D&O policy, a “why not” kind of decision. Now increasing claims cost, new risk factors, and a soft market have begun to affect the D&O industry, and all players must prepare for some changes. Here we will look at where the D&O market has been as well as what to expect for pricing in 2019. What Affects D&O Premium? Historically, D&O insurance is rated based on several factors: The size of a company, The number of employees, The operating costs, The scope of the business, Financial stability of the business, Ownership structure – i.e. “insider” vs outside investment ownership. In short, D&O policies were underwritten based on accounting and financial statements. However, today’s D&O market calls for a different approach. The new D&O claim involves data breaches, privacy concerns, social media usage and other events that are often unpredictable by standard underwriting practices. These events have nothing to do with a company’s financial situation, making them almost impossible to quantify.

Spotlight

The Health Insurance Group

The Health Insurance Group combines a whole of market, independent insurance broking service for businesses and individuals throughout the world with specialist health and wellbeing advice and solutions. The company aims to help clients manage their health risks and improve the wellbeing of themselves, their families and employees, resulting in a healthy, motivated and productive workforce.

OTHER ARTICLES

How AI is bringing the insurance industry into the future

Article | March 12, 2020

Technology is advancing every day, and it’s disrupting industries from retail to manufacturing to insurance. It has become increasingly apparent that AI, blockchain and machine learning have the power to transform the future of business and the way people work and live. These new technologies are already being applied in the insurance industry. Some insurance companies are using AI and machine learning to automate certain parts of the claims handling process and improve customer service. Blockchain is being used to detect fraud and prevent risk.

Read More

Top Features of an Effective Claims Management System

Article | March 12, 2020

Claims are a critical part of the insurance business. Even if your insurance company is not as big as Axa or Allianz, you need to have an efficient claims management system. Clients’ mindset and expectations are different from what they were 10 years ago. A recent survey called Insurance 2020: The digital prize — taking customer connections to a new level has brought to light some fascinating facts.

Read More

6 reasons to take out landlord insurance

Article | March 9, 2020

Making the leap from homeowner to property investor comes with a unique set of challenges and opportunities. While many landlords try to minimize their outlay and maximize their return – and understandably so – insurance is the one essential expense you simply can’t afford to scrimp on. It’s so important that you are adequately covered with suitable landlord insurance, so that the following scenarios don’t cripple you financially…

Read More

How AI will improve CX in insurance

Article | March 10, 2020

How many times have you called customer service expecting a quick answer, but were instead passed around to a number of different people who didn’t have your full story, forcing you to repeat yourself unnecessarily? And how many times did this lead to a much longer-than-expected resolution? We’ve all experienced this at least once and as a result, we understand the importance of streamlining experiences to keep customers happy. It begs the question: How can you deliver an experience that doesn’t leave customers running for the hills?

Read More

Spotlight

The Health Insurance Group

The Health Insurance Group combines a whole of market, independent insurance broking service for businesses and individuals throughout the world with specialist health and wellbeing advice and solutions. The company aims to help clients manage their health risks and improve the wellbeing of themselves, their families and employees, resulting in a healthy, motivated and productive workforce.

Events