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Directors' & Officers' (D&O) insurance trends 2026
Michelle Allen introduces the key findings of our 2026 D&O Outlook report, Fair Winds.
Directors and Officers insurance 2025/26 trends
The Directors’ & Officers’ (D&O) insurance market continues to deliver good news for buyers, with premium reductions persisting throughout 2025. Many clients have enjoyed significant savings at renewal, a welcome relief amid broader economic pressures.
However, while the current environment remains favourable, it is far from predictable. Rate declines accelerated in early 2025, yet signs of the market bottoming out have emerged as insurers push back against further reductions.
Behind the scenes, insurers are recalibrating their strategies in response to shrinking margins, portfolio consolidation, and evolving risk trends. Claims activity has risen again, driven by factors such as AI-related litigation, cyber exposures, and private credit concerns. New legislation, like the UK’s Economic Crime and Corporate Transparency Act, adds further complexity, increasing scrutiny on directors and senior managers.
The risk environment is evolving faster than ever. Securities class actions are rebounding, derivative claims remain significant, and new liabilities tied to fraud prevention and governance standards are gaining traction.
These developments underscore the importance of robust D&O coverage that go beyond price considerations to address the full spectrum of potential exposures. We called the report Fair Winds because we see this as a time where the outlook is bright for buyers, but winds can always blow off course. In short, the market offers opportunities, but uncertainty remains a constant.
We see that rates have levelled off
In our previous report, A Balancing Act, we looked back at 2023 from a vantage point of Q2 2024. We noted in that time the continued downward trajectory of D&O premiums and tentatively offered our opinion that rate reductions were showing signs of slowing down. There was a palpable feeling in the market that D&O premium rates were going in the wrong direction towards premium inadequacy.
Fast forward to today and we see that rates have levelled off despite sharp drops in the first two quarters.
The turnaround is driven by more policies renewing ‘as expiry’ with no change to premium in the last two quarters of 2025. Recent articles note a small increase in rates for US Public D&O although this has yet to show up in our data. Much of our US-traded book is still experiencing premium reductions.
This report cuts through the noise of falling premiums and shows buyers what’s really happening beneath the surface.
Source: (Source: Data collected by Howden Financial Lines Group)
Source: (Source: Data collected by Howden Financial Lines Group)
Turning towards insurers, we see that whilst there is still surplus D&O capacity, there are indications that insurers are increasingly reviewing the performance of their portfolios.
Those with smaller scale portfolios are showing signs of struggling with profitability. Others are adjusting their appetite. For example, Markel Bermuda consolidated their portfolio with their London team, and Volante have closed theirs. Antares are no longer writing D&O on a direct basis, and instead are only writing through existing facility arrangements. Allianz are reviewing staffing levels.
Brokers too are feeling the strain, with Price Forbes reviewing their D&O workforce due to consolidation of acquired teams and reduced profitability. The insurance press suggests other insurers and brokers may follow suit, given the ‘wage-flation’ in the hard market swiftly followed by reduced income. Strong competition prohibits rate increases so insurers are reviewing their costs instead.
The rapid decline in pricing in the last 3 years together with macroeconomic uncertainty and the looming threat of developing claims trends from cyber attacks, AI and private credit concerns is dampening the positive impact of improved loss position.
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- Insights from 2025 – rate decline continues, with many organisations benefiting from meaningful cost savings.
- Emerging risk pressures for 2026 - rising AI‑related litigation, cyber exposures, private credit concerns and the shifting US claims environment.
- The impact of new UK legislation (ECCTA) - how can directors can avoid further liability?
- Regional spotlights - Europe, Middle East, Latin America and Australia.