The majority of underwriters predict that D&O rates will slide in the coming months, according to the latest Willis Index survey.
A total of 75% of underwriters questioned said that rates would decrease by up to 10%, whilst 8% thought they could flatten out, indicating that there could be more resistance to declining rates among excess insurers where competition has been the greatest.
More than half reported decreases in rates of 10% or less, and the remaining 34% had noted larger reductions of 20% over the preceding quarter.
The survey also found 84% of respondents predicted that reductions in excess layer pricing would be less that 10%.
For the second quarter of 2006, the study revealed that competition for business in the London market is being driven by a more than adequate supply of capacity and a willingness to negotiate on coverage not seen for some years.
The Willis Index polls non-US insurance companies providing buyers of specific lines of coverage.
