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Private D&O REDY® Index October 2023

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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 - October 2023
MONTHLY RENEWAL PRICING ANALYSIS | PRIMARY AND EXCESS

PRIVATE D&O REDY INDEX October 2023 MONTHLY RENEWAL PRICING ANALYSIS | PRIMARY AND EXCESS Average YOY Renewal Change Accounts Decreasing Accounts Flat Accounts Increasing

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 on line (Premium/Limit*100). The REDY Index is intended for educational purposes only as individual accounts typically differ from average pricing trends. Self-Insured Retentions (SIR) changes are not reflected in this index. The data used to create this index reflects accounts placed nationwide, regional results may vary. Terms, conditions and coverage should be considered, in addition to price.

PRIVATE D&O EMERGING ISSUES

  1. There continues to be new market entrants into this space.
     
  2. Underwriters remain concerned with an insured’s financial well-being and debt position, so interim financials may still be requested. Underwriters will continue to stay on top of ESG, supply chain, and COVID issues.
     
  3. 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. Discuss these issues with CRC Group if your private company insured becomes a target of a SPAC.
     
  4. There remains a strong need for excess Side A DIC coverage to maximize the personal protection of the Directors and Officers.
     
  5. Difficult private D&O classes include companies with nuanced risk profiles including those in healthcare, life sciences, real estate-related businesses, cannabis, crypto, fintech, autonomus/EV driving, NFTs, technology, mid to-late stage biotech, startups with limited capital and unicorns (privately held startup companies valued at over $1 billion).
     
  6. 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 return to work issues and increase claims on EPLI line.
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