With the insights of Pawel Piwowarski, Financial Lines Director of our Polish Branch we delve into the external and internal factors that are shaping the pricing dynamics of D&O insurance.


As the year ends, we reflect on yet another challenging year in a decade marked by global uncertainty. Companies continue to grapple with the lingering effects of the pandemic, reporting negative financial indicators. Amidst daily fluctuations and ambiguity, we find ourselves planning and anticipating business development. What does the next year hold for the financial insurance industry, particularly, D&O insurance?

In this article, we delve into the external and internal factors that are shaping the pricing dynamics of D&O insurance. Can insurers and brokers confidently chart their financial strategies as we summarize this year?

Analysis of external factors

The D&O insurance market has been profoundly influenced by a series of factors, some of which trace back to2022.

The collapse of US bank and several cryptocurrency exchanges has undoubtedly cast a shadow over financial institutions.

Additionally, the acronym ESG is increasingly dominating the media landscape. Companies are now compelled to adhere to stringent requirements related to environmental, social and corporate governance aspects. Regulatory demands are soaring, and with them, the responsibilities of managers. It is evident that ESG has emerged as the hot topic in discussions initiated by reinsurers.

Furthermore, the sweeping wave of layoffs in hit the IT industry, which has rattled the Big Tech sector, has contributed to the mosaic of factors affecting D&O insurance pricing worldwide.

Internal factors

Of course, certain factors affecting D&O insurance pricing remain constant, regardless of macroeconomic events. These include: a company's assets or revenues, size, management experience, business structure, experience and number of employees, or scope of operations. All these components collectively contribute to a company’s financial security and are integral to assessing risks. A pivotal element in this assessment is a company’s the claims history, which can significantly impact the final premium calculation.

Interconnected system

Over the years, it has become evident that the Central and Eastern European (CEE) market, where Colonnade operates, has often experienced delayed response to global D&O insurance trends, resulting in a milder impact. This trend was evident during the pandemic, with D&O insurance prices surging on global markets while CEE countries experienced gradually, and the final increases did not reach the levels recorded on Western markets. After very challenging year in 2021, D&O insurance prices stabilized in 2022, offering relief to the global market. It was during this period that the trend lag in the trends became evident. Prices in Western markets started to decelerate, while the CEE market continued to experience increases.

In the second half of 2023, stabilization of prices in our region began. Currently, we even observe light decreases. This trend is expected to continue at least until the end of the year, primarily due to the return of players from the London market to our region, reintroducing competition.   

What does 2024 hold?

Will the trends of the second half of 2023 persist, or will insurance prices rise again? The market is likely to answer these questions soon. At this moment, what the market wishes for is rapid stabilization and predictability – crucial factors in D&O insurance.