After several years of significant increases in insurance costs, followed by weighty decreases over the past 18 months, organisations are beginning to see a leveling off in premiums for both Directors & Officers (D&O) and cyber insurance, according to BRP Group, Inc.
The independent insurance distribution firm recently released its third annual Directors and Officers (D&O) & Cyber Benchmarking Report, which provides a baseline of measurement for businesses that are interested in learning if they have received the same decrease as their peers.
The report also allows companies to discover how their retention compares with other firms, and whether they are buying the right amount of coverage.
According to BRP Group, more than 320 public companies participated in this year’s survey, conducted in collaboration with Nasdaq, Inc.
It has been confirmed, that the Nasdaq-listed public companies that were surveyed, on average, saw their primary D&O insurance layer decrease by 15.5%, compared to 20.3% for their previous renewal.
As well as this, 48% of respondents reported relatively flat renewals.
Moreover, 58% of companies also reported seeing a fairly flat Cyber Liability renewal (+/- 10 percent).
One key finding of note was that average retentions for D&O continued to fall steeply, as organisations reported an average retention of $2.1 million in 2023, down from $3.6 million from the previous year.
Further, around half of all participating companies saw their overall D&O premiums stay within 10% of last year.
BRP noted that only 19% of companies enjoyed a rate reduction of over 30%.
The majority of the companies that saw significant rate changes were found between $250 million – $1 billion in market cap.
Mike Tomasulo, Senior Managing Partner and National Management Liability Practice Leader at BRP Group, commented: “In light of recent Securities and Exchange Commission (SEC) rules surrounding Cyber Security Disclosures, we felt it was extremely important to add meaningful independent data on Cyber Liability Insurance in this year’s report.”
Adding: “The D&O insurance information this survey provides has proven to be extremely valuable to many public companies the past few years and our goal was to also provide them the same level of transparency and data for Cyber Liability, which can be difficult to understand and benchmark.”
