State of the Insurance Market Report

2024 Initial Outlook:
Management Liability Insurance

Let's Talk

Market Updates

US Court House, Manhattan, NYCLitigation against corporate leaders is rising, driving greater demand for strong Directors and Officers (D&O) coverage. Businesses and executives need more comprehensive protection now due to:

  • Regulatory scrutiny
  • Shareholder activism
  • Emerging risks like cyber incidents
  • Intensified environmental issues
  • Increased bankruptcy filings
  • Banking Industry turbulence

Additionally, the Securities and Exchange Commission (SEC) is introducing new regulations affecting the financial market. The commission is focusing particularly on directors and officers and the management of large debt, which could lead to bankruptcies that might impact local and global market volatility.

Although we are in a soft market, increased class-action lawsuits and larger claim settlements are increasing claims frequency and severity. As a result, underwriting standards have tightened in particular cases, leading to higher premium rates for higher-risk companies.

Coverage Considerations

The management liability insurance market remains soft coming out of a hard market phase, with rates projected to remain steady through early 2024. It is a favorable period for coverage renewal or purchase.

In 2024, pay special attention to new SEC regulations. These will affect both management liability and cyber insurance. By focusing on compliance, you’ll avoid legal and financial ramifications.

The government has also increased its focus on environmental, social, and governance (ESG) practices. Insurers are scrutinizing companies' risk management practices and governance structures more closely before extending coverage. Review policies, identify conflicts of interest, and ensure transparent disclosure to stay abreast of regulatory challenges.

Business leaders need to monitor the fast-changing landscape of cryptocurrency and digital assets. Regularly evaluate these assets through the lens of both cyber and management liability — especially when engaging with third-party providers.

Rate Forecast
Private Company: Primary: -5% to -15%
Private Company - Excess: -10% to -30%
Public Company - Primary: -10% to Flat
Public Company - Excess: -10% to -30%
Financial Institutions - Primary: -5% to Flat
Financial Institutions - Excess: -5% to -15%
Employment Practices - Primary: -10% to Flat
Employment Practices - Excess: -10% to -20%
Fiduciary Liability - Primary: -10% to Flat
Fiduciary Liability - Excess: -10% to -20%


  • Take initiative: Understand your insurance requirements, regularly assess your risks, and maintain open and transparent communication with insurers and brokers. Doing so will help you stay ahead of potential issues and position yourself well in the insurance market.
  • Leverage favorable market conditions: With stable rates and increased capacity, consider adding additional limits to your coverage or diversifying your insurance carriers. These moves can provide added protection in case of unexpected cyber threats or management liability issues.
  • Adhere to regulations: Prioritize compliance with new SEC regulations, especially regarding cybersecurity disclosures and fair valuation practices. Investing in robust risk management strategies and controls can also lead to better insurance terms and conditions.
  • Fortify cyber protection: Small and mid-market companies are prime targets for cyberattacks, because criminals assume these organizations have fewer cyber controls. Bolster cybersecurity measures to help defend against threat actors.
  • Stay current: Keep informed about industry trends, emerging risks, and regulatory changes to help you make informed decisions about your insurance coverage and risk management strategies.

Explore the Report

The contents of this report are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.