RPS report describes executive lines as a ‘buyer’s market’

Policyholders seeking directors and officers liability coverage are enjoying a “buyer’s market” as soft market conditions and abundant capacity continue, a report issued Friday by Arthur J. Gallagher Co. wholesaler RPS said.

D&O market conditions, which saw prices stabilize in the second half of 2024, should allow agents to become more creative in finding coverage solutions for their clients.

The D&O claims market remained stable in 2024 as the filings of securities class actions increased slightly to 225 for the year, up from 215 in 2023. The number of filings has been steady since peaking at 427 in 2019.

The claims market for cyber coverage, conversely, is becoming more difficult as the number of ransomware attacks continues to rise. Figures from NCC Group, a London-based cyber and software resilience business, indicate that 574 ransomware attacks occurred in December 2024, up from 387 in December 2023.

The rise in events could lead to increased scrutiny for underwriters, especially in the areas of vendor management and supplier security, the report said.

Capacity is increasing in the cyber market as some insurers that pulled back from coverage have reconsidered their positions, the wholesaler said.