Broker Check

Directors and Officers Liability Market Outlook

March 28, 2022

According to an article by Jordan Kurkowski, vice president of professional lines at AmWins, markets for directors and officers liability insurance are now increasing prices for most risks by 5 to 10%. The only exceptions are IPOs and Special Purpose Acquisition Companies (SPAC).

Concerns about bankruptcies and security claims arising from COVID-19 have not materialized, and the impact of inflation is still unknown. Underwriters are focusing on the following factors:

  • The regulatory environment - the SEC, Department of Justice and legislators will be addressing private equity and hedge funds fees; corporate crime; fraud; and board diversity.
  • Cybersecurity controls and data breach disclosures.
  • Employment practices - compliance with anti-discrimination laws, sexual harassment policies, cover ups of wrongdoing, failure to insure employee security during the pandemic.
  • Fluctuations or variations in financials.
  • Change in leadership.
  • Mass layoffs, closing locations, or loss of clients.
  • Pending sale, merger or acquisition.

Summing up, underwriters are looking at individual risk factors.

The article is at