Executive Summary
The UK directors' and officers' insurance market declined in 2009
Gross written premiums fell in 2009 due to the increase in competition, as barriers to entry remain low
National brokers continue to be the largest form of distribution for commercial general insurance
Independent intermediaries accounted for 83% of the market in 2009, flat on 2008 market share
Direct players accounted for 8.6% of the market in 2009
Chartis, ACE, and Chubb maintain their positions as the top three directors' and officer's insurance providers
Chartis has remained strong throughout the rebranding of AIG
ACE continues to challenge for the number one spot in the D&O market
Chubb remained in third place in 2009, with a market share of 18%
OVERVIEW
Catalyst
Summary
MARKET CONTEXT
Introduction
The UK directors' and officers' insurance market declined in 2009
Gross written premiums fell in 2009 due to sustained competition in the market
The market remained soft in 2009 as premium rates continue to decline
Increased product penetration has gone some way towards stabilizing GWP as premium rates continue to fall
Directors' and officers' liability insurance remains a priority during a time of austerity
Despite a reduction in GWP, D&O insurance remains a priority purchase for listed companies
SMEs are receiving outstanding value for their D&O policies, making it a more attractive product to hold
Profit margins are being squeezed by the increasing number of new entrants into the market
New players and additional capacity continued to appear in the D&O market in 2009
The top players are struggling to maintain their market share
Claim numbers continue to rise due to the current economic climate
There is a correlation between the state of the economy and the level of claims
Claim levels have not been significantly higher than expected
The increase in claim levels is also attributable to the increased cover that policies offer
Regulation changes and active regulators are increasing claim levels
Third party funding will exacerbate the already increasing claim levels
Providers should be aware of multiple factors impacting upon the directors' and officers' insurance market
Product providers need to focus on educating the market
Providers should focus on different client groups who have different reasons for purchase
DISTRIBUTION DYNAMICS
Introduction
National brokers continue to be the largest form of distribution for commercial general insurance
Independent intermediaries accounted for 83% of the market in 2009, flat on the 2008 market share
Direct players accounted for 8.6% of the market in 2009
Banks and building societies have failed to effectively challenge for commercial insurance market space
Efficiencies in the marketplace are making directors' and officers' insurance easier to purchase
Growth in underwriting agencies is making the D&O market increasingly accessible
Brokers are consolidating the market in order to achieve higher commission
Insurers are providing brokers with better means for giving an instant quote to SMEs
Large companies will continue to arrange their D&O policies through a broker, although insurance companies are seeking alternative channels
COMPETITOR DYNAMICS
Introduction
Chartis, ACE, and Chubb maintain their positions as the top three directors' and officers' insurance providers
Chartis has remained strong throughout the rebranding of AIG
ACE continues to challenge for the number one spot in the D&O market
Chubb remained in third place in 2009, with a market share of 18%
The other 28% of the market is written by smaller players in the directors' and officers' insurance market
Zurich has secured a strong position in 2009 with a market share of 11%
Other players in the D&O market are becoming more competitive in order to establish market share
FUTURE DECODED
Introduction
The UK directors' and officers' insurance market will remain competitive
A soft market will prevail in the short term as competition remains fierce
GWP will grow from 2010 onwards, as penetration rates increase
APPENDIX
Definitions
Employers' liability
Professional indemnity
Directors' and officers' liability
A-side coverage
B-side coverage (corporate reimbursement)
C-side coverage (entity securities coverage)
Attritional losses
Employment practices liability
Earned premiums
Gross premiums
Gross written premiums
London insurance market
Micro, small and medium sized enterprises (SME)
Written premiums
Methodology
Primary and secondary research
Exchange rate conversions
Competitor estimates
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
[Inhaltsverzeichnis ausblenden]
