A Changing D&O Environment in EMEA: More Volatility Ahead?

The D&O insurance market over the past decade experienced rate reductions, broadening coverage and increasing claims frequency and severity. This meant that losses outpaced premiums and the industry needed to respond. The magnitude and speed of the response that followed surprised many market participants. Significant capacity shortage led to sharp price increases and in many cases to reduced limits purchased by companies. The outlook for the D&O market remains challenging as the risk environment is more uncertain than ever.

External factors are expected to be the driving force for D&O claims, potentially putting pressure on the sustainability of the market. We have chosen to look closely at four topics which we believe will have an influence on the D&O claims landscape in Europe, the Middle East, and Africa (EMEA).  


Until 2018, the D&O insurance market experienced consistent rate reductions since 2003, with broad terms and conditions and large capacity deployed. However, during the past few years (and especially over the last two), purchasers of D&O insurance have experienced premium increases, coverage restrictions, and sometimes a shortage of capacity available. This was a result of surging loss costs as D&O claims have increased both in frequency and severity. The long-tail nature of D&O insurance in combination with growing claims inflation have led to many D&O insurers posting losses in the past few years.

There are no signs that loss costs will improve in the near to mid-term. With traditional types of D&O claims likely to remain and the addition of macroeconomic uncertainty, enhanced regulatory activity, society’s heightened focus on corporate social responsibility, and the passing of new legislation to support consumers, exposures remain elevated for the foreseeable future.

It is within this changing market environment that we continue to support our clients by building long-term partnerships during the insurance market cycle to help them have the right protection for their D&O’s.