Customers benefit: D&O insurance with falling premiums!

Customers benefit: D&O insurance with falling premiums!

The D&O insurance market has changed significantly in favor of customers worldwide since the end of 2022. According to the Trade newspaper The main reasons for this are falling premiums, lower deductibles and a broader scope of coverage. This development is remarkable, especially after several years in which the market was considered tough. The change first began in the United States and then spread to other countries. The Swiss market shows a similar trend, but shows smaller changes compared to other regions.

In addition, he has Market report 2024 from Finlex show that the D&O market has become more resilient. The analysis shows that new business in the D&O area is increasing, while insurers' underwriting behavior has become less restrictive. This results in more capacity being made available and prices in new business being reduced.

Challenges and risks

Despite the positive developments, there are worrying trends. Rising insolvency rates are causing concern for the insurance market as managers are often confronted with claims for damages. This risk is particularly relevant in the context of current economic uncertainties.

Another area that requires attention is the cyber insurance market. According to the Finlex report, insurers are also showing signs of new business here. Increasing cyber incidents have integrated cyber security into corporate risk management, forcing companies to strengthen their protective measures. In addition, the media exposure of major cyber damage leads to increased risk awareness and investments in cyber security.

Risk minimization strategies

In order to manage these risks, insurers are increasingly relying on “outside scans” to check companies’ IT security. Cyber ​​claims that go smoothly make it clear that many of these incidents can be resolved through insurers' professional claims services. Around a quarter of cyber insurance cases are even successfully handled through initial measures taken by companies.

Finally, the Finlex report also highlights the need to adapt to new conditions, particularly in cyber renewals, where insurers must continue to ask new questions. The NIS 2 Directive plays a crucial role in this by increasing the urgency for cyber security. Overall, it is clear that the D&O and cyber insurance market is in a phase of change that presents both opportunities and challenges.