As predicted in last year’s Looking Ahead, D&O insurance rates continued to rise in 2021. However, there are early signs that the market is in transition and that some relief may be on the way. As documented in this year’s Underwriters Weigh In™ survey, 54% of underwriters think D&O premiums will go up over the next year. While high, 54% is so much better than the unanimous response last year when 100% of underwriter respondents predicted continued rate increases. When thinking about what is in store for 2022, it is useful to drill into some of the trends we are seeing and why, despite some room for optimism, many D&O buyers will continue to face pricing challenges.

Renewal Pricing Trends for Public Companies The pace at which rates were increasing during the last three years peaked during Q2 of 2020. Since then, D&O rates have continued to rise, but there has been a deceleration in this rate of increase. During 2019, the median change in premium (total program cost) was 31% and in 2020 it rose to 38%. For the first half of 2021 that figure has come down to 26%.