Pricing trends for directors’ and officers’ liability insurance “turned around” in the first half of the year, with most policyholders seeing price cuts, a change from the second half of 2021, according to a report released Tuesday by Woodruff Sawyer & Co.
In the first half of the year, 69% of Woodruff Sawyer’s policyholders saw a premium reduction. That compared to the 70% who experienced an increase in the second half of last year, according to the broker’s annual report on the sector. It said it expects the trend to continue into next year.
Woodruff Sawyer said the declines were most dramatic in the life sciences, technology and IPO segments, which were significantly impacted by the previously tough market.
The report says market-leading insurers are responding to new entrants in the public D&O market by lowering premiums to retain customers.
Some policyholders experienced rate increases in the first half of the year, but the median increase of 8% has declined sharply so far this year from 14% in 2021, the report said.