Recent turmoil in the banking sector and a lack of funding options has many clients facing an uncertain short-term future, however, D&O insurance rates continue to be favourable.

Thanks to this, companies have been able to save money, build back limits and introduce previously prohibitively expensive ancillary lines, such as Employment Practices Liability (EPL), Pension Trustees Liability (PTL) and Crime insurance. Alternative D&O structures, such as the use of Side A ‘Difference in Conditions’ (“DIC”) layers, have also been accessible and a popular introduction to existing or new programmes.

Capital markets remain stalled, with IPO valuations continuing to fall short of stakeholder expectations, especially in the wake of increased interest rates. This lack of IPO activity and the insurance spend that goes with it remains a pressure on insurers’ budgets, and this drives a willingness in the sector to compete aggressively on good quality business.