Most insurance agents and brokers know that D&O liability insurance pricing has become much softer in the few years, and a recent Insurance Journal article (see here), confirms this. The article, based on information from Advisen, describes market conditions and the impact of changing corporate governance on D&O premiums.
- According to Advisen, the average D&O liability insurance premium more than doubled between the 4th quarter of 2000 and the 4th quarter of 2003
- Average D&O premiums have fallen 30% since the 4th quarter of 2003
- Premiums dropped 5.5% in the fourth quarter of 2006
While more insurance capital is chasing the same client base, improved corporate governance is lowering loss costs. Improved public company corporate governance has been motivated by the corporate scandals, such as Enron, and by the resulting Sarbanes-Oxley legislation, but the impact has been felt in the private company and nonprofit sectors as well.
Specialty Insurance Expertise: Tennant Risk Services
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