This week, we published the 2012 version of Side A D&O Insurance Market Survey, which covers 26 carriers offering this important additional protection for Board members. The Executive Summary and the full Report can be found at IRMI.
In our research, we found:
* A continuing saturation of the market for large publicly-traded insureds
* The opportunity for private company and large not-for-profit market expansion is still unrealized
* Substantial limits of coverage are being purchased (the Survey includes information about the range of limits carried by insureds)
* Rates are edging up, but not dramatically (in line with most other commercial lines); current premiums (U.S.-based purchasers) of $700 million-$1 billion
I expect to see this product as having more appeal than to just the publicly traded insureds, but to date, it seems I am ahead of the market. Private companies and large not-for-profits seem disinterested in the benefits of the product. Is this because they don’t know it exists? Don’t understand it? Think they don’t need it?
Many D&O policies are sold (and high limits are purchased) because the Board wants it, even if they don’t particularly know much about the coverage and exposure. If this is true – why aren’t more Boards demanding Side A coverage?