Pacific insurance rates

Financial and professional lines rates decline

Financial and professional lines rates decreased 12%.

• New market entrants contributed to an increase in capacity and competition.
• Rates for directors and officers (D&O) liability declined in the 15% to 20% range, on average.
• Financial and professional lines rates decreased, but not uniformly across the various product classes.
• Long-term agreements (LTAs) were offered to some clients.

Cybersecurity controls remain a key to rates

Cyber insurance rates declined 5%.

• Improved competition from insurers generally led to more coverage and retention options for clients, including increased limits, decreased retentions, and improved pricing for maintaining a similar policy structure.
• Insurers focus areas included supply chain risk, dynamic privacy regulations, and ransomware.
• Cyber physical damage cover was an area of increased interest for clients.
• Cyber limit quantification is increasingly seen as valuable in understanding an organization's cyber risk exposures.