As we move further into 2025, the Executive Lines market is being shaped by a combination of shifting capacity, strong competition and growing scrutiny around coverage. These forces are creating new challenges and opportunities for brokers working to serve their clients.
The abundance of capacity is perhaps the most defining feature of today's environment, even with the potential for some exits from the market. As RPS Area Senior Vice President Bryan Dobes puts it: "The sheer amount of capacity in the market continues to push pricing downwards."
This increased competition has had the most pronounced effect on the private-company Directors and Officers (D&O) space.
"We're still in a very soft market," Dobes says. "There are always certain industries — like entertainment, gambling and crypto — that remain tough, but for most sectors, competition is keeping pricing low, and we've been in this position since 2022."
The picture is similar in the public D&O market, although this could change if the number of companies going public increases.
"We saw some positive momentum in the first part of 2023 that tapered out as the year went on and started to pick up as the year ended," says RPS Area Executive Vice President Andrew Jarousse. "This is an important source of new business for carriers, and if the number of companies going public remains tepid, it tends to increase the need for carriers to compete on mature renewal business, leading to more downward rate pressure."
The claims environment is relatively stable in terms of volume, with securities class action filings holding steady in recent years. But price alone is no longer the main differentiator, and brokers must also focus on the quality of cover available.
"The coverage we are placing with these D&O policies is very important to our insureds," Dobes says. "We've been doing these reviews for 20 years now, and this has allowed us to create a list of pre-approved endorsements with our carriers that allow us to deliver the best coverages possible for our clients."
This level of detail is essential in a soft market, where options abound.
"In a hard market, you're placing business with whomever will write it — you're relying on the carrier and historical norms just to secure coverage," Dobes explains. "But in a soft market, the approach should shift to being more insured-centric.
"Start with the insured — their operations, size and claims history — then broadly market them with a strong narrative to 10 or even 20 carriers. That way, you can come back with the best coverage and a carrier that truly fits your insured's needs."
Jarousse echoes this sentiment: "Coverage is critical, and we should constantly push the boundaries, particularly in response to new or novel claims scenarios or changes brought by major court decisions," he says. "I just caution that it's important to separate the substance from marketing."
In such a competitive landscape, ensuring strong carrier relationships and deep product knowledge will be key for brokers aiming to stand out. The market may be soft, but expectations around service and expertise have never been higher.
Learn more about what's next for the Management and Professional Liability market in the 2025 Management and Professional Liability Market Outlook.