A highly competitive market pricing environment along with a shifting claims landscape is having an adverse effect for many professional liability underwriters, particularly in Directors & Officers (D&O) liability insurance.
Though representing only 1% of total industry direct premiums, D&O insurance comes with a notoriety that belies its size. Sizeable D&O claims arise from events such as corporate insolvencies, large stock price declines, financial reporting irregularities or regulatory investigations. D&O insurance is intended to cover the directors and officers of an organization against allegations of negligence, misleading statements or wrongful acts that lead to litigation. Leading underwriters in the D&O insurance segment include AIG, Chubb Limited and XL Group Ltd.
D&O specific direct underwriting results are reported by insurers in statutory supplemental filings since 2011. Following initial years of steady growth, unyielding market competition has stalled premium growth over the last four consecutive years. Industry direct written premium volume held at approximately $6.4 billion in 2017.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
