1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > D&O Insurance in Germany

D&O Insurance in Germany

  • December 2014
  • -
  • Finaccord
  • -
  • 25 pages

D&O Insurance in Germany is about the market for directors' and officers' liability cover in Germany. In addition to documenting the development of the market value from 2010 to 2014, the report also divides it for the most recent year for three key segmentations: between publicly listed corporate enterprises, unlisted corporate enterprises and other entities (e.g. non-incorporated businesses and the not-for-profit sector); between the financial services sector, the non-financial services sector and the manufacturing / primary sector; and between underwriters based in Germany itself and underwriters located outside of it.

These unique market splits are based in part on a survey of leading brokers and underwriters of D&O insurance in Germany. This same survey also identifies the underwriters of this type of cover used by brokers on a regular basis, gives an input into Finaccord's estimates for the market shares of underwriters of D&O insurance, provides a basis for commentary surrounding distribution channels used for this type of cover, informs observations concerning trends in claims by type of insured entity, and guides Finaccord's forecasts for the market value through to 2018.

Table Of Contents

DandO Insurance in Germany
0.0 EXECUTIVE SUMMARY 1
1.0 INTRODUCTION 3
What is this report about? 3
Rationale 3
Several factors underpin the rationale for the production of a study about DandO insurance 3
Methodology 3
Research program 3
Market data analysis 3
Definitions 4
DandO insurance 4
Policies are usually taken out by companies rather than by company managers… 4
… and typically pay for both defence costs and the damages paid to the claimant 4
DandO insurance can be bought by a variety of different types of entity 4
In Europe, policies typically incorporate Side A and Side B cover but not always Side C cover 4
Stand-alone cover bought for certain specialised risks is excluded from the definition of DandO insurance 5
Premiums 5
Sectors 5
Abbreviations 5
Finaccord 6
2.0 MARKET ANALYSIS 7
Introduction 7
Regulatory background 7
Management board members in Germany are generally considered to face very significant liability risks 7
The great majority of lawsuits are started by supervisory boards 7
In the case of limited liability companies, DandO claims are often related to bankruptcy proceedings 8
Number of insurable entities 8
The number of insurable entities is growing in the case of unlisted entities but falling among listed ones 8
Very few non-corporate entities in Germany have taken out DandO insurance. 8
Market value, growth and segmentation 9
The German DandO insurance market enjoyed robust growth between 2010 and 2014… 9
… in spite of the fact that premiums rates have been falling for many policyholders… 10
… if not for certain types of financial institution 11
Penetration rates are rising rapidly (albeit from a very low base) among not-for-profit entities 11
Around a half of the total market value is due to the manufacturing and primary sectors 12
Around 90% of the German DandO insurance market is underwritten in Germany itself 15
Penetration levels 15
Senior managers of publicly listed companies generally expect to be provided with DandO cover 15
There are likely to be well over 20,000 corporate enterprises with DandO insurance in Germany 16
Underwriter market shares and specialisms 16
Around 20 underwriters of DandO insurance are used by brokers in Germany… 16
… with Allianz likely to be the market leader 17
AIG is re-building its position, especially among larger corporate clients 18
Chubb was one of the companies to first introduce DandO insurance to the German market 19
Underwriting agency VOV is especially strong in the SME market 19
DUAL Deutschland is an important co-insurer for larger risks in the German market 19
HCC and XL Group both focus primarily on large corporate risks… 19
… while Hiscox has pioneered DandO insurance products for start-up companies 19
Relatively new entrants include Catlin, CNA, Markel, Mitsui Sumitomo, QBE and W.R. Berkley 20
Many savings banks are insured by public sector insurance companies 20
Key brokers and broker specialisms 20
A few insurers make DandO cover available via their agency networks 20
Gebrüder Klose is a notable specialist working with captive brokers of large German companies 20
Hendricks and Co. is likely to intermediate the largest number of DandO policies in Germany 21
Trends in claims and key risks 21
The DandO insurance market remains profitable but has experienced rising claims in recent years… 21
… especially among companies with annual revenues of more than EUR 50 million… 21
… and certain types of investment fund 22
Defence costs account for around 65% of all DandO claims paid out in Germany 22
Future outlook 23
The consensus of opinion is that premium rates for DandO cover will bottom out in 2015 23
A debate to reform management liability is underway in Germany 24
3.0 APPENDIX 25
Brokers and insurers participating in the survey 25
DandO INSURANCE IN GERMANY
0.0 EXECUTIVE SUMMARY 1
Key market data for DandO insurance in Germany 2
1.0 INTRODUCTION 3
2.0 MARKET ANALYSIS 7
Number of insurable entities segmented by legal structure, size and sector in Germany, 2014 9
Premiums for DandO insurance and the percentage of the total general liability insurance market that this
represents in Germany, 2010 and 2014 10
Segmentation of DandO insurance premiums in Germany between publicly listed corporate enterprises,
unlisted corporate enterprises and other organisations, 2014 12
Segmentation of DandO insurance premiums in Germany between the financial services sector, the nonfinancial
services sector and the manufacturing / primary sector, 2014 13
Ratio of DandO insurance premiums to gross value added in the financial services sector, the non-financial
services sector and the manufacturing / primary sector in Germany, 2014 (table) 14
Ratio of DandO insurance premiums to gross value added in the financial services sector, the non-financial
services sector and the manufacturing / primary sector in Germany, 2014 14
Segmentation of DandO insurance premiums in Germany between underwriters based in Germany and
underwriters based abroad, 2014 15
Proportion of publicly listed corporate enterprises and unlisted corporate enterprises with revenues above
EUR 10 million with DandO insurance in Germany, 2014 16
Frequency of usage of specific insurance underwriters by major brokers of DandO insurance in Germany,
2014 17
Estimated market shares of DandO insurance premiums of underwriters in Germany, 2014 18
Segmentation of claims costs between defence costs and other claims costs in Germany in a typical year
. 23
Forecast premiums for DandO insurance in Germany, 2018 24
3.0 APPENDIX 25

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

  • $ 7150
  • Industry report
  • September 2016
  • by MarketsandMarkets

“Rapid increase in mobile banking will drive the FDP market” The Fraud Detection and Prevention (FDP) market size is estimated to grow from USD 14.36 billion in 2016 to USD 33.19 billion by 2021, at ...

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

  • $ 4950
  • Industry report
  • September 2016
  • by Frost & Sullivan

Benchmarking the Industry Excellence in Delivering Superior Customer Experience Customer experience is the accumulation of customers’ experiences throughout their journey with the supplier, across any ...

Customer Experience Management Study—Malaysia’s Health Insurance Sector 2015

Customer Experience Management Study—Malaysia’s Health Insurance Sector 2015

  • $ 4950
  • Industry report
  • September 2016
  • by Frost & Sullivan

Benchmarking Industry Excellence in Delivering a Superior Customer Experience Customer experience is the accumulation of customers’ experiences throughout their journey with the supplier, across any ...


ref:plp2014

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.