As we enter quarter two, 2021 we are cautiously optimistic that the emerging signs of a more tempered legislative and case law environment will lead to greater D&O market stability in the medium term.
The regulation of litigation funders, proposed changes to continuous disclosure laws and the Federal Court dismissal in the Worley Case are all positive developments.
The substantial premium re-alignment secured by the D&O insurance market over the past three renewal cycles has placed the insurance market in a more sustainable position, though it is estimated that the Australian D&O premium pool has grown to more than $800 million.
Greater ABC capacity stability is anticipated, as most insurers have largely executed their portfolio strategies with regard to both their preferred positions on D&O programs and premium requirements.
From 2020 where we witnessed an ongoing deterioration of an already stressed D&O market and insurer uncertainty we now see ‘green shoots’ of new capacity with fresh entrants offering competitive advantages in the D&O Insurance Market.
Download the D&O Insurance Market Insights report for further information.