Directors’ and officers’ premiums continue to escalate, mainly driven by a spike in class actions, according to Gallagher’s latest quarterly market report.

“Throughout this year of change, one thing has remained constant: the intense scrutiny company directors are under at a time when employees, consumers and shareholders are demanding more accountability for their actions,” CEO Sarah Lyons says.

The hardening market has led to insurers taking a much closer look at initial public offerings, engaging in more rigorous underwriting, raising prices and restricting cover.

“Insurers are more selective of the risks they insure, with an increasingly limited number prepared to consider putting up terms only after they have considered responses to an extensive list of questions,” Gallagher says. “This is challenging for large raisings where clients seek significant capacity from multiple insurers.”

The report says the insurance sector has opportunities to grow further as it evolves to meet the changing business landscape and support clients’ needs. Growth in the transport sector and the increasing popularity of surety bonds hold great promise.