The REDY Index leverages CRC Group’s collection of actionable data – the wholesale industry’s largest. It provides critical pricing analysis monthly, giving you a snapshot of the marketplace. The REDY Index generates instant intelligence on pricing trends by industry or coverage, enabling our retail partners to set accurate data-driven expectations with their clients. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results.

PRIVATE D&O REDY® INDEX - January 2025
MONTHLY RENEWAL PRICING ANALYSIS | PRIMARY AND EXCESS

Results displayed above reflect average CRC Group Private D&O renewal pricing changes by month (over the previous 12 months). Results are limited to accounts that renewed in the same month as the prior year with the same total account limits. To remove outliers, the top and bottom 1% of accounts by YoY % change have been removed, as well as the top and bottom 1% of accounts by rate on line (Premium/Limit*100). The REDY Index is intended for educational purposes only as individual accounts typically differ from average pricing trends.

PRIVATE D&O EMERGING ISSUES

1. The soft market will continue through 2025. Decreases are anticipated to slow down throughout the year as the soft market conditions enters a third year. Carriers are competing, utilizing either price, retentions, coverage enhancements or all three. We are having success in negotiating coverage enhancements, and insureds are likely to see continued flat or lower renewal pricing on claim-free accounts with strong financials. There will be even more pricing competition on excess placements as excess remains highly competitive. Capacity in the marketplace remains abundant. However, ongoing global conflicts, economic and social inflation, insured financial concerns due to higher interest rates, and a nonrobust IPO market could impact the D&O market during 2025. Insureds with tougher financials or claim activity or those that are in challenging industries like healthcare will not see the benefits of lower pricing, lower retentions, or enhanced terms and conditions.
2. Underwriters are paying closer attention to the financial condition of insureds due to the significant increase in corporate Chapter 11 or Chapter 7 filings from insureds who can’t raise funds through an IPO or loans. They are also monitoring areas of claims that had previously been associated with public companies like regulatory actions, antitrust claims and breaches of fiduciary duty.
3. There remains a strong need for excess Side A DIC coverage to maximize the personal protection of the D&O coverage.
4. A few carriers are using an auto renewal strategy to attempt to keep their renewals out of the market and retain flat to small premium increases on their books.
5. Also driving Private D&O, lead markets in the middle market and large account space are managing premium via SIR. Newer insurer capacity in the small emerging market space is keeping premiums/ SIRs aggressive via the MGA approach. This market space is becoming more like cyber where portal markets are targeting each other’s business and perpetuating the cycle.
6. Private D&O underwriters are also affected by fiduciary liability and EPL, which are often combined with Private D&O. Carriers have been impacted by excessive fee litigation on the fiduciary liability, return to work issues, and increased claims on the EPLI line due to class actions related to “employee activism surges.” Other major contributors are tension over hybrid work policies, layoffs, growing discrimination claims, and unionizing attempts reaching a 40-year high.