Latest news with #ChristopherGraham
Business Wire
19-05-2025
- Business
- Business Wire
Best's Market Segment Report: Changing Environment Brings New Risks to D&O Insurers
BUSINESS WIRE)--Despite declining premium volume and challenging underwriting conditions, insurers providing U.S. directors and officers (D&O) liability coverage had their most favorable loss experience in more than a decade in 2024, according to a new AM Best report. Significant reserve takedowns from prior accident years during the hard market's peak also led to the best quarterly results in the past seven years and bolstered year-end 2024 results. However, according to the Best's Market Segment Report, 'Changing Environment Brings New Risks to D&O Insurers,' challenges remain from open claims dating to the soft-market years of 2016-2019, which developed adversely in 2024 and could persist. The report also notes that D&O liability underwriters will be challenged by a wide array of risk associated with artificial intelligence. 'Market uncertainty, evolving technology, corporate disclosure related issues, and potential macroeconomic strife stemming from new tariffs are among the factors affecting D&O segment,' said David Blades, associate director, Industry Research and Analytics, AM Best. 'Corporate executives continue to face a variety of challenges in managing complex risks amid rising uncertainty.' The report includes an analysis of data available from the monoline D&O liability supplement in the annual statement filings of U.S. companies. Based on that review, the direct loss ratio monoline D&O liability has improved by more than 10 percentage points from the high over the last 11 years (2014-2024) of 62.4 in 2017 and 2018. D&O underwriters are still benefiting from the significant rate and price increases and the more conservative underwriting and policy terms and conditions that drove a dramatic shift in the market's dynamics in 2020 and 2021. As 2025 approaches the halfway point, many market participants have expressed concern that recent pricing reductions that led to D&O liability direct premiums written (DPW) declining in each of the past three calendar years will not be sustainable. According to the report, the primary reason is the multitude of complex risks corporate executives are currently managing, which also include macroeconomic uncertainty; the evolving legal landscape; and the changing nature of cyber risks, in addition to others. While D&O liability premium for the entire industry was down by 6.0% year over year in 2024, much of that was from the first quarter. Total D&O premium for first-quarter 2024 of $2.2 billion was the lowest quarterly total in four years, with DPW increasing in each following quarter during the year. The increased premiums in the fourth quarter, coupled with significant reserve takedowns, led to a significant drop in the loss ratio. 'The loss ratio for the fourth quarter of 2024 was the lowest quarterly loss ratio of the past seven years by a wide margin, seven points better than for any other quarter,' said Christopher Graham, senior industry research analyst, AM Best. 'At the same time, continued profitable results could lead to sustained pressure on pricing if insurers have little reason to raise rates and risk losing profitable business.' To access the full copy of this report, please visit A video discussion about this report with Graham is available at
Yahoo
27-01-2025
- Business
- Yahoo
Best's Market Segment Report: Pet Insurance Business Showing Growth as US Inland Marine Results Remain Strong
OLDWICK, N.J., January 27, 2025--(BUSINESS WIRE)--Despite growing pains, there are early indications that insuring family pets is evolving into a meaningful niche business line for the U.S. inland marine insurance segment, according to a new AM Best report. While specific full-year results on pet insurance won't be available until March 2025, data available through the third quarter of 2024 indicates that the premium level could eclipse the $4 billion mark by year end and potentially reach as high as $4.5 billion. The new Best's Market Segment Report, titled, "Mixed Early Pet Insurance Results but Inland Marine Remains Strong," notes that 2024 marked the first year that pet insurance results have been separated out from the U.S. inland marine segment's premium and loss data. The report states that the loss ratio for pet insurance through the first nine months of 2024 was higher than for the rest of inland marine insurance line, due possibly to growing demand for insurance to help cover rising veterinary costs. Including pet insurance, the inland marine line's loss ratio for the period remained in the post-COVID-19 pandemic range of 44-49%. In addition, the top 10 pet insurers account for 90% of the pet insurance market, making it a highly concentrated market. Pet insurance is just one part of the inland marine insurance market, which serves as a catch all and largely includes products and materials that are shipped over land. Results have been very consistent over the past 10 years for the inland marine market, with 2020 being an anomaly owing to the pandemic. "Overall, inland marine remains profitable, outperforming the entire property/casualty insurance industry by a wide margin and doing so with steady growth, buoyed by growing construction and increasing travel," said Christopher Graham, senior industry analyst, AM Best. Some of the report's other findings include: Inland marine business remains profitable, with a direct loss ratio more than 20 points better than that of the property/casualty industry overall. Inland marine's loss ratio has been worse than the P/C industry's only once in the past 14 years—in 2020, when contingency claims (event and travel cancellations) spiked due to the pandemic shutdowns. Direct premium written continues to grow for inland marine, rising 6.9% in 2023, with the calendar year total more than double the amount of a decade earlier. Overall inland marine premium, absent pet insurance, is still growing, albeit at a slower rate. Inland marine's net combined ratio results and profitability have been consistent, with even less variance than direct loss ratio results. Even in 2020, the net combined ratio for inland marine was at least marginally better than that of the P/C industry. To access the full copy of this special report, please visit A video discussion with Graham and David Blades, associate director, Industry Research & Analytics, AM Best, is available at AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Christopher Graham Senior Industry Analyst, Industry Research and Analytics +1 908 882 1807 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 David Blades Associate Director, Industry Research and Analytics +1 908 882 1659 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
