In this year’s second annual survey, many companies provided critical information regarding their Directors & Officers Liability insurance programs. The result is one of the only independent reports about spending and purchasing in the D&O marketplace. Our takeaway — after several years of significant increases in D&O insurance costs, we are finally seeing a reduction in both premiums and retentions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.
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The property insurance market may be hard and the economy may be riddled with uncertainty, but that doesn’t mean you’re powerless as a business decisionmaker. BRP is here to help our clients thrive even in the most trying circumstances.
The property insurance market may be hard and the economy may be riddled with uncertainty, but that doesn’t mean you’re powerless as a business decisionmaker. BRP is here to help our clients thrive even in the most trying circumstances.
The property insurance market may be hard and the economy may be riddled with uncertainty, but that doesn’t mean you’re powerless as a business decisionmaker. BRP is here to help our clients thrive even in the most trying circumstances.
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To access the full 2023 report, please complete this survey.
View our 2023 Executive Summary for the overview of this year’s findings.
Healthcare
Technology
Data from over 350 Nasdaq-listed companies.
Granular insurance limits to benchmark against broken down by market cap.
Average and median premium amounts listed by industry and market cap.
On average, companies saw their total D&O insurance program costs decrease by 35 percent, driven by lower excess and A-Side rate.
Recent IPOs and DeSPACs saw their retentions drop by 40 percent.
In 2022, Healthcare and Technology were two of the industries that saw a reduction in their primary layer rates (especially for newly public companies, which the numbers above represent).
In addition to premiums, retentions are also significantly altered by whether or not a company recently was an IPO. Below is a small sample of the retention data captured in the survey.
Benchmarking your limits and premium against your peers is very valuable information. However, it is even more important to understand what a claim settlement would look like for a company of your size. Properly sizing your D&O program could save hundreds of thousands in unnecessary premium costs.
Companies are PAYING less
Companies are BUYING less
Contact our team for more information about the report or a full D&O insurance program analysis.
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866-279-0698
Our family of firms are strategically placed across the United States.
The benefit to you? You can see how your insurance program stacks up against similar companies by both industry and market cap, independent of who placed the coverage.
More than 75 percent of companies surveyed saw their premiums remain flat or decrease.
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Based on our exclusive database of information provided by Stanford Securities Litigation Analytics, over the past 10 years, when sued in a securities claim, a company that has a $500M - $1B market cap had the following settlements:
Total Average Limits: $34.8M
Total Median Limits: $30M
Average Settlement: $8.5M
Median Settlement: $6.5M
Also factor in the need to add additional costs for defense, potential sidecar derivative actions, and the unlikely SEC investigation, and all in, the average cost of risk is roughly $13M - $15M. A company that is purchasing $35M with a $2.5M retention could be potentially over-insuring by $15M - $20M in limits.
