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Private D&O REDY® Index January 2023

REDY REDY Index Private D and O REDY-Index

The REDY® Index leverages CRC Group’s collection of actionable data – the wholesale industry’s largest. It provides critical pricing analysis monthly, giving you a snapshot of the marketplace. The REDY Index generates instant intelligence on pricing trends by industry or coverage, enabling our retail partners to set accurate data-driven expectations with their clients. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results.

 

PRIVATE D&O REDY® INDEX - January 2023
MONTHLY RENEWAL PRICING ANALYSIS | Primary and Excess

13.0% 11.4% 11.8% 9.6% 6.8% 7.1% 6.6% 9.0% 5.1% 5.6% 3.4% 5.8% 5.8% 15% 14% 18% 11% 9% 9% 8% 9% 13% 4% 10% 8% 8% 100 25% 23% 23% 23% 19% 11% 16% 14% 12% 13% 10% 16% 30% 48% 48% 30% 35% 37% 41% 37% 35% 42% 47% 47% 47% 43% 13% 14% 12% 19% 25% 24% 33% 45% 36% 44% 37% 41% 47% Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 Average YoY Renewal Change Average YOY Renewal Change May '22 Jun '22 No Increase No Increase Jul '22 Aug '22 1% to 9% 1% to 9% Sep '22 Oct '22 10% to 19% 10% to 19% Nov '22 20%+ 20%+

Results displayed above reflect average CRC Group Private D&O renewal pricing changes by month (over the previous 12 months). Results are limited to accounts that renewed in the same month as the prior year with the same total account limits. To remove outliers, the top and bottom 1% of accounts by YoY % change have been removed, as well as the top and bottom 1% of accounts by rate online (Premium/Limit*100). The REDY Index is intended for educational purposes only as individual accounts typically differ from average pricing trends.

PRIVATE D&O EMERGING ISSUES

  • D&O and EPL retentions are experiencing a slight increase.
  • Underwriters will still be concerned about an insured’s financial well-being and debt position, so interim financials may still be requested.
  • As more private companies become the target of SPACs, such transactions present unique and first-impression issues for D&O insurance program structuring, wording, and coverage issues. It’s important to discuss these issues with CRC if your private company insured becomes a target of a SPAC.
  • Difficult private D&O classes include companies with nuanced risk profiles including those in healthcare, life sciences, real estate-related businesses, cannabis, crypto, fintech, autonomous/ EV driving, NFTs, technology, mid-to-late stage biotech, startups with limited capital and unicorns (privately held startup companies valued at over $1 billion).
  • Private D&O underwriters are also affected by the fiduciary liability and EPLI market, which are often combined with Private D&O. Private D&O carriers have been impacted by excessive fee litigation on the fiduciary liability line, and EPLI claims are on the rise.
  • New capacity entering the market over the last three years is considering primary business, which puts downward pressure on rates. Some excess rates are already decreasing.

 

REDY REDY Index Private D and O REDY-Index