Press Release - JUNE 11, 2019
AM BestTV: New Court Venues, Litigation Funding and #MeToo Impacting D&O Market, Say AM Best Analysts
FOR IMMEDIATE RELEASE
OLDWICK - JUNE 11, 2019
The D&O insurance segment’s performance improved in 2018. Manyem highlighted what drove the improved performance of the sector.
“I would characterize the 2018 results as better than 2017, but it is still troublesome,” said Manyem. “The direct loss ratio has seen a three- to four-point improvement over the past two years, but it is still well above the historic average. What drove the small improvement in the loss ratios was a slight decrease in the number of securities class action suits, as well as improvement in the rate environment and some underwriting actions carriers have taken to increase self-insured retentions.”
Hanig discussed whether D&O insurers are getting appropriate rates in relation to the risks they are underwriting.
“In general, insurers have recognized the need for rate increases, recently. In particular, they took materially more rates in 2018 compared with 2017,” said Hanig. “Whether that’s going to be adequate for the future environment is going to be difficult to predict, but the D&O writers are recognizing that they have rate needs and are taking action.”
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