In response to recent SEC Rules on Cyber Liability disclosures, this year’s 3rd annual survey provided critical information regarding D&O and Cyber Liability Insurance. The result is one of the only independent benchmarking reports on spending and purchasing in the D&O & Cyber Marketplace.
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 2024 report, please complete this survey.
View our 2024 Executive Summary for the overview of this year’s findings.
Biotech/Pharma
Technology
Data on Directors & Officers and Cyber Liability Insurance
Granular data on limits by revenues, market cap and industry
Average & Media premium and retentions listed by revenue, market cap and industry
Average D&O retentions were down roughly 40% from $3.7M in 2022 to $2.2M in 2023
Average primary D&O rate decrease for all companies was 15.5%, compared to 20.3% the prior year
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.
Contact our team for more information about the report or a full D&O insurance program analysis.
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Overall, it appears that rates are starting to stabilize for both D&O and Cyber insurance. However certain industries are still seeing double digit reductions in D&O rates, while retentions also continue to decline.
Roughly 60% of companies saw flat Cyber Liability Renewals
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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 to you in collaboration with Nasdaq.
Thoughts from a survey of over 120 D&O Underwriters from the U.S, and U.K.
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Nasdaq Survey Data for a $500M - $1B Market Cap Company:
Total Average Limits: $30.8M
Total Median Limits: $27.5M
Based on our exclusive database 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 high had the following settlements:
Average Settlement: $8.5M
Median Settlement: $6.5M
You would need to add additional costs for defense, potential sidecar derivative actions, and the unlikely SEC investigation. All in, the average cost of risk is roughly $13M - $15M.
So, a company that is purchasing $30M, with a $2.5M retention could be potentially over- insuring by $10M - $15M in limits.
Please contact managementliability@baldwinriskpartners.com if you would like a full claims analysis based on your current program.
