Lockton Market Update Offers Signs That "Soft Market" for Executive Risks Insurance is Ending

Prices Flattening for Director's & Officer's Insurance

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Nov 22, 2011, 11:00 ET

KANSAS CITY, Mo. and LONDON, Nov. 22, 2011 /PRNewswire/ -- A new update from insurance broker Lockton shows that the prolonged buyer's market in the executive risks insurance market may be ending.

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"As 2011 draws to a close, the soft insurance market for financial and executive risk insurance lines is beginning to show its age," says Lockton's William Boeck in the U.S. executive risks report. "Whether the current renewal environment is a harbinger of across-the-board premium increases remains to be seen; however, underwriters are trying to raise them where they can." However, Lockton does not foresee dramatic pricing increases in executive risks in the coming year.

Boeck adds that premium rates for cyber liability policies remain flat. "While the appetite of some insurers for cyber risks has changed, the continued growth in the number of insurers writing those policies has worked to keep rates level."

Chris Hewitt, an executive risks expert for Lockton in London indicates the global executive risks insurance outlook remains relatively competitive in his global report. "Outside of the financial institutions arena, the market for D&O insurance continues to be highly competitive. Capital remains freely available. Reinsurers at the recent Rendezvous de Septembre event in Monte Carlo gave no indication of intending to increase rates," Hewitt says. "Consequently, primary D&O rates can be expected to remain flat for the foreseeable future."

The Lockton Market Update is available free. The newest update includes reports on 20 insurance and employee benefits markets globally.

About Lockton

More than 4,100 professionals at Lockton provide more than 15,000 clients around the world with insurance, benefits, and risk management services, offering an uncommon level of client service. From its founding in 1966 in Kansas City, Missouri, Lockton has grown to become the largest privately held insurance broker in the world and 9th largest overall. Independent researcher Greenwich Associates awarded Lockton its 2011 Service Excellence Award for risk management for large companies. For three consecutive years, Business Insurance has recognized Lockton as a "Best Place to Work in Insurance."

SOURCE Lockton