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U.S. Directors and Officers Insurance Market by Coverage, and End User - Opportunity Analysis and Industry Forecast 2021-2030.

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    Report

  • 65 Pages
  • September 2021
  • Region: United States
  • Next Move Strategy Consulting
  • ID: 5451137

The U.S. Directors and Officers (D&O) Insurance Market size was valued at USD 8.81 billion in 2020 and is predicted to reach USD 22.65 billion by 2030 with a CAGR of 10.0% from 2021-2030. D&O liability insurance provides protection to the personal liabilities of corporate directors, officers and their spouses, in case there are any charges pressed against them due to their culpable acts while working in an organization. Charges pressed can be due to various reasons such as misuse of company funds, frauds, and misrepresentation among others. This insurance covers all legal fees, defense fees, settlements and other costs to provide financial protection to firms, so that they do not suffer any losses caused due to malpractices and errors. This type of insurance shields the organization from financial uncertainties and provide protection to personal liabilities of directors and officers, in case they are sued by employees, competitors, suppliers, creditors or general public.

Market Dynamics and Trends


In the U.S., D&O insurance market has generated considerable traction due to the excessive losses occurring due to major corporate events and allegations such as accounting violations, provision of indemnity during bankruptcies, reorganizations, mergers and acquisitions, or management embezzlement. Also, the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have renewed their efforts to hold individual directors and executives accountable for alleged corporate misconduct. The Yates Memorandum is one such example of this reinforcement. According to this memorandum, the company must identify all persons suspected of misconduct in any aspect, regardless of their status or seniority, in order to gain some honor for its cooperation with the government (also known as cooperation credit). Moreover, the #MeToo campaign began at the end of 2017, highlighting the prevalence of sexual harassment in the U.S. workplaces, has led to increased number of employee practice liability insurance (EPL) claims. Historically, D&O and EPL insurances have been offered as part of a single policy, with combination limits or some restrictions. This approach of providing D&O coverage allowed aggressive discounts, with most of the premium allocated to EPL exposures.

However, D&O does not cover expenses arising due to any kind of criminal activities, punitive damages and intentional wrong doings, which restrains the growth of D&O insurance market to some extent. On the other hand, risk professionals are optimizing their current insurance plans to use capital more efficiently. By working with the right broker, private company risk experts can gain predictive modelling capabilities as their publicly traded counterparts. These consultants can use company-specific indicators in their analysis to estimate the potential and severity of D&O litigations within five years. Such predictions can help to make key decisions about how to structure an insurance plan in the coming years.

Market Segmentation and Scope of Study


The U.S. Directors and Officers (D&O) Insurance market share has been analyzed based on coverage and end user. Based on coverage, the market is segmented into employment practice litigations, regulatory investigations, customer suits, accounting irregularities and other stakeholder claims. Based on end user, the market is classified into public organizations, private organizations, and non-profit organizations.

Competitive landscape


The U.S. Directors and Officers (D&O) Insurance market represents a highly fragmented market with cut throat competition among the market players. Some of the major market players operating in U.S. Directors and Officers (D&O) Insurance market are American International Group Inc., The Traveler Companies, Great American Insurance Group, CNA Financial Corp., HCC Insurance Holdings, Allianz Global Corporate and Speciality SE, General Re, Nationwide Mutual Insurance Company, Marsh LNC, and Chubb Limited.

KEY MARKET SEGMENTS:

 

U.S. Directors and Officers (D&O) Insurance Market - By Coverage

  • Employment Practice Litigations
  • Regulatory Investigations
  • Customer Suits
  • Accounting Irregularities
  • Other Stakeholder Claims

 

U.S. Directors and Officers (D&O) Insurance Market - By End User

  • Public Organizations
  • Private Organizations
  • Non-Profit Organizations
Frequently Asked Questions about the U.S. Directors and Officers Insurance Market

What is the estimated value of the U.S. Directors and Officers Insurance Market?

The U.S. Directors and Officers Insurance Market was estimated to be valued at $9.6 Billion in 2021.

What is the growth rate of the U.S. Directors and Officers Insurance Market?

The growth rate of the U.S. Directors and Officers Insurance Market is 10.1%, with an estimated value of $22.6 Billion by 2030.

What is the forecasted size of the U.S. Directors and Officers Insurance Market?

The U.S. Directors and Officers Insurance Market is estimated to be worth $22.6 Billion by 2030.

Who are the key companies in the U.S. Directors and Officers Insurance Market?

Key companies in the U.S. Directors and Officers Insurance Market include American International Group Inc., The Traveler Companies, Great American Insurance Group, CNA Financial Corp., HCC Insurance Holdings, Allianz Global Corporate and Speciality SE, General Re, Nationwide Mutual Insurance Company, Marsh LNC and Chubb Limited..

Table of Contents

1. Introduction
1.1. Report Description
1.2. Research Methodology
2. U.S. Directors and Officers (D&O) Insurance Market- Executive Summary
2.1. Market Snapshot, 2019-2030, Million USD
3. Market Share Analysis
3.1. Market Share Analysis of Top U.S. D&O Insurance Providers, 2020
4. Market Dynamics
4.1. Growth Drivers
4.2. Restraints
4.3. Opportunities
5. COVID-19 Impact Analysis on D&O Insurance Market
6. U.S. D&O Insurance Market, by Coverage Type
6.1. Overview
6.2. U.S. Employment Practice Litigation Market, by Coverage Type
6.3. U.S. Regulatory Investigations Market, by Coverage Type
6.4. U.S. Customer Suits Market, by Coverage Type
6.5. U.S. Accounting Irregularities Market, by Coverage Type
6.6. U.S. Others Market, by Coverage Type
7. U.S. D&O Insurance Market, by End-user
7.1. Overview
7.2. U.S. Public Organizations Market, by End-user
7.3. U.S. Private Organizations Market, by End-user
7.4. U.S. Non-Profit Organizations Market, by End-user
8. Company Profiles
8.1. American International Group Inc.
8.2. The Travelers Companies
8.3. Cna Financial Corp.
8.4. Hcc Insurance Holdings
8.5. Great American Insurance Group
8.6. Allianz Global Corporate and Speciality Se
8.7. General Re Corporation
8.8. Nationwide Mutual Insurance Company
8.9. Marsh LLC
8.10. Chubb Limited

Executive Summary

U.S. Directors and Officers (D&O) Insurance: U.S. Market Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2030- D&O insurance shields the organization from financial uncertainties and provide protection to personal liabilities of directors and officers, in case they are sued by employees, competitors, suppliers, creditors or general public, which in turn acts the major factor driving the market growth.

D&O liability insurance provides protection to the personal liabilities of corporate directors, officers and their spouses, in case there are any charges pressed against them due to their culpable acts while working in an organization. Charges pressed can be due to various reasons such as misuse of company funds, frauds, and misrepresentation among others. This insurance covers all legal fees, defense fees, settlements and other costs to provide financial protection to firms, so that they do not suffer any losses caused due to malpractices and errors.

The U.S. Directors and Officers (D&O) Insurance market share has been analyzed based on coverage and end user. Based on coverage, the market is segmented into employment practice litigations, regulatory investigations, customer suits, accounting irregularities and other stakeholder claims. Based on end user, the market is classified into public organizations, private organizations, and non-profit organizations.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • American International Group Inc.
  • The Traveler Companies
  • Great American Insurance Group
  • CNA Financial Corp.
  • HCC Insurance Holdings
  • Allianz Global Corporate and Speciality SE
  • General Re
  • Nationwide Mutual Insurance Company
  • Marsh LNC
  • Chubb Limited.