Why D&O Insurance Prices Have Dropped 60% Since 2021
In this episode of The SPAC Podcast, Chaz breaks down why D&O insurance pricing has plummeted nearly 60% over the past nine quarters and why the market looks so different today compared to the 2021 peak.
He explains how a flood of new insurance carriers entered the market post-2021, doubling the number of firms writing public D&O insurance from ~32 to ~65 by the end of 2022. With increased competition and new entrants unburdened by legacy claims reserves, carriers were able to aggressively lower prices.
The result? SPAC sponsors and boards are seeing historically low costs for D&O coverage, creating opportunities but also raising questions about long-term market sustainability.
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LinkedIn: https://www.linkedin.com/in/chazchurchwell/
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Michael Blankenship LinkedIn:
https://www.linkedin.com/in/mikeblankenship/
Joshua Wilson LinkedIn:
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The views, opinions, and statements expressed by the guest are solely their own and do not necessarily reflect the views of The SPAC Podcast, its hosts, or affiliated organizations. This content is for informational purposes only and should not be construed as investment, legal, tax, or accounting advice.
Disclaimers:
The views, opinions, and statements expressed by the guest are solely their own and do not necessarily reflect the views of The SPAC Podcast, its hosts, or affiliated organizations. This content is for informational purposes only and should not be construed as investment, legal, tax, or accounting advice.
Michael J. Blankenship is a licensed attorney and is a partner at Winston & Strawn LLP. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is intended for informational and educational purposes only and should not be interpreted as legal, financial, or compliance advice. The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the official policies or positions of any regulatory agency, law firm, employer, or organization.
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Let’s Connect on LinkedIn:
👉 Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
👉 ...
Mike Blankenship:
Speaking of pricing, why have D&O insurance prices dropped so much over the past two years?
Chaz:
Around 2021, D&O insurance pricing was at its peak. But since then, we’ve seen a massive influx of new carriers. Companies like Bowhead and others entered the market, taking the number of U.S. insurers writing public D&O from about 32 to 65 by the end of 2022.
That level of competition drove pricing down but even more so because of the legacy claims dynamic. Established carriers must hold large capital reserves for past claims, but new entrants don’t have that burden. With more capital available, they can push pricing even lower.
That’s why we’ve seen D&O insurance costs drop nearly 60% over the past nine quarters for SPACs. Even we’re surprised at how low they’ve gotten.
Chaz Churchwell
Founder & Principal
Chaz is a ~20 year industry veteran and U.S. Army Reserve veteran. He holds membership with the Professional Liability Underwriting Society, and is regularly asked to speak internationally on insurance coverages/trends for public companies. With a BA from the University of North Texas and an MA in Apologetics from BIOLA University, his commitment to excellence is evident. Establishing Churchwell Insurance Agency in 2014, Chaz and team are now serving over 1,200 clients.
Specializing in executive liability insurance, he’s on track for the prestigious ExecPLP designation. Chaz and his team prioritize personalized solutions, adeptly navigating complex financial scenarios. Beyond work, he values investing time in family, fitness, and faith. He loves supporting his daughter’s basketball pursuits and continues to hope for a Cowboys’ Super Bowl return, despite renewed disappointment every season. Chaz’s favorite charity is The Mighty Oaks Foundation that fights veteran suicide, by bringing veterans who are suicidal and their spouse in to a no-cost program to find purpose and save that vet’s life. A portion of agency profits goes to fight for the lives of those who risked their lives to fight for us.