UK Directors’ & Officers’ Insurance: Market Dynamics and Opportunities 2018
Summary
The soft market conditions that characterized the UK directors’ & officers’ (D&O) market in recent years largely came to an end in 2018. Premium rate rises are particularly in evidence in the large corporate sector, as claims frequency and severity have both increased. While pockets of highly competitive and profitable business remain, several major insurers have been burnt, and a more prudent pricing approach is emerging in the face of an ever-changing risk landscape.
Key Findings
The report "UK Directors’ & Officers’ Insurance: Market Dynamics and Opportunities 2018", provides an in-depth analysis of the UK D&O insurance market. It looks at market size and profitability as well as changes in premiums, claims, distribution, regulations, and opportunities. It provides a thorough overview of the market along with future forecasts.
Companies mentioned: Allianz, Marsh, Aon, Arthur J Gallagher, RSA, Aviva, Hiscox, Allianz, Markel, XL Catlin, Travelers, Jewel, AIG
Scope
Reasons to Buy
Summary
The soft market conditions that characterized the UK directors’ & officers’ (D&O) market in recent years largely came to an end in 2018. Premium rate rises are particularly in evidence in the large corporate sector, as claims frequency and severity have both increased. While pockets of highly competitive and profitable business remain, several major insurers have been burnt, and a more prudent pricing approach is emerging in the face of an ever-changing risk landscape.
Key Findings
- The UK D&O market is estimated to be worth £218m in 2018, marking growth of 7.3% as the underwriting cycle has turned. However, premium rate rises are not forecast to last beyond 2020
- Penetration of D&O among SMEs continues to gradually increase. The 2018 UK SME Insurance Survey estimates that 18.7% of SMEs now have D&O, a figure that rises along with company size; around 50% of small and medium companies now have this cover
- 52.3% of SMEs claimed to have most recently bought D&O online. However, personal interaction still plays an important role in the sales process, particularly for small and micro companies
The report "UK Directors’ & Officers’ Insurance: Market Dynamics and Opportunities 2018", provides an in-depth analysis of the UK D&O insurance market. It looks at market size and profitability as well as changes in premiums, claims, distribution, regulations, and opportunities. It provides a thorough overview of the market along with future forecasts.
Companies mentioned: Allianz, Marsh, Aon, Arthur J Gallagher, RSA, Aviva, Hiscox, Allianz, Markel, XL Catlin, Travelers, Jewel, AIG
Scope
- Penetration of D&O among SMEs continues to gradually increase. The 2018 UK SME Insurance Survey estimates that 18.7% of SMEs now have D&O, a figure that rises along with company size; around 50% of small and medium-sized companies now have this cover.
- As pressures have ratcheted up, the health of the UK’s D&O book has significantly deteriorated over the last couple of years. In Q4 2018, insurers almost unanimously reported an increase in claims over the last couple of years, particularly for larger public company risks. Many insurers stated that profitability on their D&O books has been marginal at best, with several major players losing money.
Reasons to Buy
- Benchmark yourself against the rest of the market.
- Ensure you remain competitive as the market faces new challenges.
- Adapt your distribution strategy to ensure it is efficient and still meets customer purchasing behavior.
Table of Contents
1. EXECUTIVE SUMMARY
2. MARKET DYNAMICS
3. SME D&O BUYING BEHAVIORS
4. FUTURE
5. APPENDIX
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Allianz
- Marsh
- Aon
- Arthur J Gallagher
- RSA
- Aviva
- Hiscox
- Allianz
- Markel
- XL Catlin
- Travelers
- Jewel
- AIG