Jim Walsh unpacks structural pressures reshaping the D&O market in Intelligent Insurer

“Finding quality risk will be increasingly difficult, and the expert management liability teams able to identify it, will be the ones who stand out in the marketplace.” 

Jim Walsh, Managing Director and Head of Professional Lines at Howden Re was featured in Intelligent Insurer in a focused look at financial lines and what’s to come in the market. 

Jim unpacks the structural pressures reshaping the D&O market: exposures are rising, litigation is evolving, and premium is shrinking. Since 2021, market cap exposure is up 67%, while D&O rates have fallen by 33%, leaving a gap that underwriters and reinsurers can no longer ignore. 

“The changing legal landscape is forcing D&O carriers to re-assess their underwriting strategy, consider new ways to model expected loss costs, take a closer look at Side A pricing, and place more emphasis on portfolio management to better insulate against major events and deliver profitability,” said Jim.  

With event-driven litigation now constant and IPO activity rebounding, insurers are under pressure to adapt. The market is entering a flight-to-quality phase, where discipline, data, and precision will determine who leads. 

Read the full article here