Nasdaq-listed public companies saw their primary D&O premiums drop by 20% in 2022, with recent IPOs seeing even greater decreases. This is among the findings of BRP Group's second annual Directors' and Officers' Benchmarking Report, which reveals a steep decline in premiums, after years of rate increases.

More than 350 public companies participated in this year’s survey, conducted in collaboration with Nasdaq. Recent IPOs or DeSPACs saw an average 28% rate decrease for their primary layer. Of all companies surveyed, recent healthcare and technology IPOs saw the largest decreases at over 30%.

One finding of note was that even in this environment of rate decreases, companies are opting for lower coverage amounts. The report found that 25%of companies decreased their overall limits, an increase from 2021 in which only 10% percent of companies decreased their overall limits.

“Benchmarking your limits and premium against your peers is very valuable information, especially in a time of significant rate changes,” said Mike Tomasulo, senior managing partner and national management liability practice leader at BRP Group. “D&O insurance is a major budget item for public companies, especially during initial public offerings and DeSPAC transactions. As such, companies need independent limits, pricings and claims data along with a trusted advisor to help them manage these significant costs while also securing best-in-class coverage and protecting corporate directors and officers.”

Share Story: