Conning Research: Niche Focus Spells Success in Directors’ and Officers’ Liability Insurance

Opportunities for Growth Thanks to Market Expansion

(Hartford, CT) September 2, 2008 – Over the past decade, the Directors’ and Officers’ line of business has grown faster than the broader property-casualty market, at nearly double the rate of the commercial lines average. Premium growth has come from pricing, broader coverages, and increasing penetration of the corporate marketplace, according to a new study by Conning Research and Consulting.

“The hard Directors’ & Officers’ market and related claims issues in the period 2000 to 2004 resulted in buyers of corporate D&O, especially larger ones, becoming much more sophisticated in their management of D&O exposures,” said Mark Jablonowski, analyst at Conning Research & Consulting. “This increased sophistication is reshaping the market at the upper end. At the same time, awareness of D&O exposures among midsized and small companies, including private and not-for-profit companies, has increased. As a result, this market is growing in the face of a soft overall market for property-casualty, and the small and mid-account segment is less volatile.”

The Conning Research study, “Directors’ and Officers’ Liability: Finding the Right Niche,” presents the current state of the line of business in relation to recent history, analyzes current competitive dynamics, and outlines potential future issues in the market.

“On the supply side, insurers are finding that allocating capital in responding to the needs of larger, more sophisticated buyers can have its pitfalls,” said Stephan Christiansen, director of research at Conning Research. “Among them are increased exposures to mega-losses, and competition from alternative structures and off-shore markets. At the other end of the market, midsized and smaller accounts present a niche market with substantial growth potential-even in this soft market. Carefully crafted niche play can provide a profitable outlet for increasing capacity in the D&O line.”

“Directors’ and Officers’ Liability: Finding the Right Niche” is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting

Conning Research & Consulting provides insurance industry analysis to insurers and industry stakeholders. Its published research includes market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. The Conning name has represented excellence in independent insurance industry research for 50 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.

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