Insurers won’t retreat from softer D&O premiums quickly, Miller says

Rising competition in D&O insurance has yet to scare away major insurers and may even tempt London Market names back into lower program layers, the  Miller insurance brokerage is advising clients.

To date in 2022, aggressive new entrants to the market have muted prices, forcing more and more players in pursuit of new business "creating a snowball effect and driving aggressive underwriting behaviours," authors wrote.

“London’s D&O carriers have been surprised by the level of competition they are contending with,” authors said in a mid-year report on the D&O market.

Some have even turned back against the market's prevailing move towards higher attachment points on hope that lower layers can do a better job of retaining rate.

“At these attachment levels the rate still tends to hold for underwriters and provides solid growth opportunities for the London market,” authors said of outlook.

That trend could hold to at least end-year. Despite uncertainties for global macro, Miller senses continued drive from insurers for volume.

“There is little doubt that budgeting pressures will continue to drive insurers to compete for premium through the second half of the year.”

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