An interview with Julien Martins, Head of Executive Assurance, France
This was first published by News Assurances Pro
How would you summarise market dynamics in the D&O insurance sector?
The D&O insurance market is currently experiencing a period of softening, which may seem counterintuitive against a backdrop of heightened governance expectations, increased regulatory scrutiny, and ongoing economic uncertainty. This shift is largely driven by improved underwriting profitability following several years of portfolio rebalancing, rate hardening, and reduced claims volatility as overall market capacity contracted.
As profitability has stabilised, increased competition from both new entrants and established insurers has placed downward pressure on pricing. In parallel, the frequency of large D&O losses has remained relatively low, supported in part by stronger corporate governance, enhanced internal controls, and more mature risk management frameworks across many organisations.
You mentioned the challenging risk backdrop for directors – what are the challenges they are currently facing?
Directors are navigating an increasingly complex risk landscape shaped by a global “poly-crisis” encompassing economic, geopolitical, regulatory, and social pressures. Persistent inflation and interest rate volatility continue to strain financial planning and capital allocation, while geopolitical conflict, trade tensions, and evolving regulatory frameworks are amplifying uncertainty and compliance risk.
Against this backdrop, boards are required to balance immediate operational pressures with long-term strategic objectives, often pursuing diversification across markets, products, and services to strengthen resilience. At the same time, they face mounting operational challenges, including third-party and supply-chain dependencies, rising ESG expectations, and the accelerating pace of digital transformation.
How is this elevating the need for D&O cover and in particular Side A cover?
The environment is reinforcing the importance of robust D&O insurance, particularly enhanced protection of individual directors through Side A coverage. Wrongful act claims against directors and officers represent a growing share of D&O notifications, underscoring the increasing personal exposure associated with strategic decision-making in complex and volatile conditions.
Side A cover helps protect directors’ personal assets where corporate indemnification is not available. This exposure is most acute in situations such as financial distress, insolvency, or judicial and regulatory proceedings, where indemnification may be prohibited or the company lacks the financial capacity to respond. Side A Difference in Conditions (DIC) policies can provide broader protection and bolster existing D&O programmes where exclusions or sub-limits may leave directors’ personal assets exposed.
How is Arch supporting its D&O clients to ensure that they have the relevant robust coverage that they need in place?
Arch aims to support its clients by delivering flexible, responsive D&O solutions that evolve alongside their businesses. As companies expand into new geographies or adjust their operating models, we are able to adapt policy wordings, provide local-language amendments, and respond to changing regulatory requirements throughout the policy term.
Our focus is on being responsive to client needs and maintaining a disciplined underwriting approach. This is underpinned by a deep understanding of client activities and risk profiles, enabling us to offer optimal terms and conditions when and where they are most needed.
In addition, our multi-line capabilities in our European business enable us to maintain a more consolidated partnership approach, providing broader visibility across clients’ risk management challenges and helping to ensure that third-party liability exposures are addressed.
What would you say helps differentiate Arch in a competitive marketplace in France?
Arch is looking to differentiate itself through execution and service quality underpinned by several key pillars.
These include a tailored underwriting approach aligned with the client’s underlying risk exposure, with the ability to review terms on demand throughout the policy lifecycle. Decision-making is locally empowered and we’re proud to be recognised for our reactivity and giving brokers and clients early visibility on terms and conditions.
Where would you say Arch is pushing boundaries?
Arch has a strong appetite for supporting clients operating in complex and evolving environments. The team is comfortable underwriting risks such as IPOs involving U.S. stock exchanges and providing coverage for large, complex financial institutions.
We continue to push boundaries by adapting coverage structures to meet the specific needs of our clients. This includes exploring blended coverages and developing dedicated solutions for niche sectors, such as FinTech, where traditional insurance products may not fully address the underlying risk profile.