D&O RATES TO DECREASE EVEN MORE:

The start of 2004 was a testing time for the global D&O market, reports Willis’ Directors & Officers Index which asked participating insurers for their views about the past three and next three months. Results of the index revealed a favorable perception of the future market for clients even though high profile claims and investigations made insurers nervous about potential losses. As a result premium rates were still generally increasing in the first quarter of 2004, however, in the second quarter of 2004 there was a noticeable leveling out in the market as the influx of new carriers increased competition levels. Responses for the Willis Index, looking at non-US companies, were invited from 95 percent of the market and the results speak volumes. Sixty-one percent of insurers who responded felt that primary premium rates had dropped in the past three months, with 69 percent of the market anticipating that rates would further decrease in the next three months. This sentiment was echoed on an excess basis with even more definitive feedback; 46 percent of insurers believing that rates had dropped on average by between 11 percent and 25 percent in the past three months, with 75 percent anticipating a similar drop in the forthcoming three months.

Topics Trends Pricing Trends