This update sets out our observations of the current market conditions for Directors’ and Officers’ insurance (“D&O”) and the impact this has on board directors, non-executive directors and insurance buyers and is based on our observations of the market with our WTW clients and not a whole of market review. For ease of understanding, percentages have been presented as rounded figures.
We continue to see most of our clients renewing their D&O insurance with lower premiums, with 67% benefiting from lower rates on line in the first quarter of the year compared to the previous year’s renewal, and 70% in the second quarter. Those who renewed at flat rates amounted to 18% in the first quarter and 17% in the second quarter of 2025.
We see our clients taking advantage of the ongoing favourable market conditions with not only their premiums reduced but their terms improved. Our in-house designed wording - DARCstar 2025 – has continued to receive support from the majority of London market insurers, and clients have had success in migrating their programmes to its new, improved version. Many of the enhancements made to DARCstar have been incorporated into the DARCstar Private Equity wording as well, with many clients adopting the updated wording during their renewals this year. With lower rates and increased insurer appetite, we have also seen some clients buying increased limits for their D&O cover, particularly those with smaller limits (up to 10 million).
Notifications are up in the first six months of 2025, although it remains to be seen if these will develop into actual claims and whether the second half of the year will sustain this development. While the notifications are still being analysed, what we can say is that in part this increase is driven by a small number of clients who have made multiple notifications. The number of US Securities Class actions filed in 2025 appears to be relatively consistent with 2024, so there is no indication from that data to suggest an increase in securities class action claims.[1]
Notwithstanding the increase in D&O notifications, carriers are still offering our clients very advantageous conditions; premium-wise and in terms of coverage, with some probability of a moderation in the pace of premium reductions in the future. Further insights will be shared once full-year figures become available, continuing in our mission to support clients in their risk management needs.
Whole Tower rate on line continues its downward trend, with median rate having decreased by 17% and the mean having decreased by 31% in an annual comparison.
Primary layer rate on line figures are in a similar position to the Whole Tower, with median year on year decreases of 22% and mean decreases of 17%. See Chart 3 in Appendix I.
We see an upward trend in the number of notifications in the below chart starting in 2023. If the trend continues in 2025, we will see an increase in notifications for the second year in a row. However, it remains to be seen whether these notifications will develop into actual claims.
Commercial D&O - Number of notifications
| Min | Max | Notes | |
|---|---|---|---|
| Rate on Line | 0.01% Rate on Line | No max | Rate on Line is calculated by dividing the premium by the limit of liability that is being purchased and expressing that as a percentage. This shows the proportional cost of the limit of liability being purchased by each client. |
| Rate on Line change | 0.01% Rate on Line | No max | We are comparing the Rate on Line paid last year to the Rate on Line paid this year for a given client at renewal. |
Figures in this report are based on WTW FINEX FINMAR client placements, sourced as 22 July 2025, and WTW client notifications from GB placements only, between 1 January 2007 to 30 June 2025. They will be updated periodically to reflect additional records. Graphs in this report show the moving averages between July 2022 and Q2 2025.
An ABC placement is one which includes cover for Side A (D&O non-indemnified loss), Side B (D&O indemnified loss) and Side C (Company Securities Claims).
