BRAVADO Introduces a Bigger D&O Insurance Team

Amidst all commercial lines, the D&O insurance line has seen some of the most substantial price upsurges over the past three years. Amendments in financial performance were facilitated by changes in underwriting procedures, including lower limits, larger retentions, and more policy exclusions.

The push by insurers for moderate to significant rate/pricing increases fueled the top line premium prosperity in 2021, which was an outstanding year for directors and officers (D&O) insurers' premium, volume, and direct profitability since 2014. According to reports, D&O writers consistently elevated their overall pricing by more than 10% per quarter, driven in part by a 35% increase in direct premiums to $14.6 billion. It will take some time before the entire repercussion of the pandemic on D&O and other professional or management liability lines is conspicuous. Since the pandemic is still posing problems for businesses and the economy, COVID-19-related D&O claims may be lagging events or actions.

The revenue margins of D&O insurers are projected to continue to be under pressure from new risks such social inflation, cyber-related disclosures, special purpose acquisition businesses, lawsuit funding, and ESG.

Our D&O reinsurance offers businesses and their management prime capacity supported by BRAVADO's outstanding balance sheet, long-term market commitment, and first-rate service. A further benefit of the new D&O coverage is that it improves BRAVADO's capacity to offer transnational programs and services to businesses with exposures in the region and across the rest of the company's worldwide network.