Global conditions in the directors’ and officers’ (D&O) insurance market are shifting as insurers recalibrate strategies amid ongoing competition and rising litigation risk, according to the latest Gallagher Specialty D&O Global State of the Market Report. While buyers continue to benefit from declining premiums and expanded coverage—driven by an influx of new insurers since 2022—Gallagher warns that the pace of price reductions is slowing, indicating signs of market stabilization into 2025.
Insurers remain keen to grow their portfolios, but many are becoming more selective. Some are now prepared to exit renewals if pricing fails to meet their benchmarks. Coverage enhancements, such as entity investigation coverage, remain widely available, particularly through broker-led policies.
The report highlights several growing exposures:
Political changes, activist investor actions, and economic volatility further complicate the risk environment for directors and officers, the report highlighted.
The market for commercial crime, pension trustee liability and employment practices liability (EPL) is also evolving:
Gallagher emphasizes the importance of early and strategic engagement with insurers and brokers to navigate the changing environment. Buyers are advised to regularly reassess coverage, manage long-tail claims risk and build insurer relationships for long-term value.
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