D&O/E&O Insurance Market Overview and Notable Trends
As Q1 2022 comes to a close, we are pleased to report that the asset management D&O/E&O insurance market is finally showing signs of stabilization. Significant corrective actions taken by insurers over the past two years, primarily in the form of double-digit premium increases and material adjustments to retentions, have for the most part been implemented. As further discussed in this market update, such actions, combined with increased competition resulting from an influx of new excess capacity, means Insureds with favorable risk profiles should expect flat to moderate premium increases on asset management D&O/E&O renewals in H1 2022, while retentions should remain stable.
Throughout this update, we also highlight new and emerging issues impacting the asset management industry. Noteworthy items include the risks associated with market volatility arising from the crisis in Ukraine, new and proposed SEC rules targeting Private Funds and Cybersecurity, regulatory updates in Europe, the growing focus on ESG & Climate risks, and, of course, the continued impact and evolving risks stemming from the COVID-19 pandemic. We also discuss the implications these issues may have for an asset manager’s risk profile, as well as their D&O/E&O insurance programs.
While the D&O/E&O insurance market is improving, 2022 has already presented numerous challenges to the asset management industry
While the D&O/E&O insurance market is improving, 2022 has already presented numerous challenges to the asset management industry and will likely continue to do so throughout the year. We hope that this update provides meaningful guidance to Insureds when preparing for upcoming renewals, managing stakeholder expectations, and assessing the impact industry events may have on D&O/E&O insurance programs.
We invite you to download the report and learn more about these issues in greater detail.
Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
| Title | File Type | File Size |
|---|---|---|
| US Asset management market update: H1 2022 | 2 MB |
