U.S. D&O Insurance Market

We have added two quarterly data points to our primary price analysis. Fewer policies are renewing with decreases. However, increases are still difficult to achieve:

For each section, we look at the # policies renewing up, down or flat.

Note – our price indices do not (and cannot) capture changes in terms or conditions. This is particularly important for Private Companies, where coverage is broadening.

Renewal Price Outcomes by Policy Count

The number of policies renewing with a price decrease is dropping, and the overall average price change is moving back towards flat. However, given the year-on-year price decreases that preceded 2025, and the general outlook, we do not believe the ‘fight for flat’ is sufficient at this stage.

Renewal Price Outcomes of Policy Count

Over half of FI policies renewed flat or up, but actual price rises are thin on the ground. Although the FI pricing environment is less volatile than for public commercial, over the past four quarters the average decrease has been 8%.

Renewal Price Outcomes of Policy Count

With the right underwriting infrastructure and an expert claims team, private company D&O can be underwritten profitably. However, we have also seen the impact of capacity moving from public companies to private – over the past four quarters, the average price reduction has been 10%.

Cornerstone reports continued elevated levels of core (ex M&A) Securities Class Action filings in the first half, above the historical average. More importantly, significant YoY increases in Disclosure Dollar Loss (+56%) and Maximum Dollar Loss (+154%) mean current pending securities class actions are likely to settle for ever higher amounts.

There is no reason to expect private companies will be less affected by the ongoing rise in corporate bankruptcy filings.

In 2015-2019 the market was worried about frequency. Today the rapid rise in DDL/MDL levels means severity is much more of a concern.