The E&O/D&O market is forever changing. During these tough times, we felt it was important to share with our clients and prospects what is going on in the renewal market, as it is all over the place. The average renewal increase over the last 9 months is around 5%. Of course, some are higher, some are lower or even stayed flat. This is rare, as most investment advisors are managing more money and more clients. This is an indication of increased risk amongst all underwriters from many of the different carriers that we represent.
The area of financial insurance that has been hit the hardest is cyber insurance. The average cyber renewal increase is around 17%, as we are in a hard market regarding cyber. Almost all insurance carriers are experiencing dramatic claims.
Ransomware is when a hacker obtains personal information and then uses the information to request money, or the hacker will release this information to the public. Now, attackers have transformed this into an aggressive form of cyber extortion. Ransomware is definitely the leading cause for the loss that the insurance carriers are experiencing.
All in all E&O renewals are not increasing too dramatically, but we have found that cyber premiums have been on the rise over the last 9 months.