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1.4 Woodruff Sawyer Client Renewal Pricing

In 2020, with rare exceptions, companies continue to experience increases in total cost and retention on their D&O programs, regardless of size and industry. Given the small number of clients that experienced a flat or decrease in their most-recent renewal, this report focuses on what the data reveals concerning trends in the increases.

Any broker’s perspective on and experience with D&O insurance renewals necessarily reflects the demographics of their clients. We are a leader in negotiating D&O insurance for companies in the life science and technology industries, including companies that are

Based on the data (perhaps unsurprisingly), insurance carriers tend to have a broad consensus that certain risk types should be charged higher premiums than others.

aggressively disruptive, not to mention engaged in IPOs or direct listings. Many of our clients fall on the higher end of the risk spectrum. Consequently, they are more

The spectrum graphic here illustrates percent increases in total premiums experienced by different types of companies.

impacted by market changes. We note, however, that our clients with more gentle risk profiles are experiencing the same general trend as our riskier clients, albeit in a somewhat more muted way. READ OUR TIPS ON HOW YOU CAN MAXIMIZE YOUR CHANCES OF A SUCCESSFUL RENEWAL.

MEDIAN PREMIUM INCREASES BY RISK PROFILE Q3 2019 through Q2 2020 )

ch

p Ca * et & s k ie ce ar M str ien p M du Sc 0 Ca n I e 10 * et e* y* le s Lif $ ly* k c O g p n ti IP ar lo en On i t o ha ul lude M c e t n n M xc ce eS B+ ch ss Sid A(e Le $5 Te Re Lif Te

20%

Min

25%

28% 30% 32%

Increase in Premium

39%

45%

ign

re

Fo

s*

er

Fil

150%

Max

* Includes all market caps

10

D&O LOOKING AHEAD 2021 | WOODRUFF-SAWYER & CO.

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