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.
In the third quarter of 2025, 60% of our clients enjoyed rate reductions in their D&O insurance, benefitting from continued competitive market conditions.
While H1 figures for D&O notifications indicated an increase on 2024 (if that rate had continued for the second half of the year), that increase slowed down in the third quarter (see Chart 2 for more details) and if the trend continues, we may see yearly figures for 2025 very similar to those of 2024. As discussed in our previous GB D&O Market Update, the higher number of notifications in the first half of 2025 were mainly due to a small number of clients making multiple notifications, and the deceleration in new notifications in Q3 suggests that this was not a general trend. Furthermore, it is still uncertain whether these will evolve into actual claims.
Overall, the third quarter of 2025 reinforces the positive trajectory our clients have experienced throughout the year, with very few clients facing rate increases and market conditions remaining favourable. The slowdown in notifications points to stability, but it is important to wait for full-year figures before assuming broader trends.
Lastly, our A-Star facility – which works as excess layer cover for non-indemnified (“Side A”) loss incurred by directors, officers and other insured persons – renewed with improved terms on the 1st of November. From that date on, our clients have enjoyed a free 10-year Insolvency Discovery Period (up from 8 years), reinstatements that can be triggered to cover the same claim (previously, only for separate claims), the right to purchase an extension at a pro rata premium if the policy is not renewed or replaced and an even more comprehensive definition of Insured Person, among other improvements. We are pleased to support our clients with A-Star placements and encourage you to contact your broker to discuss how these enhanced terms may benefit your coverage.
Whole Tower rate on line continues to fall, with reductions of 15% for median rates and 23% for mean rates, in an annual comparison.
Primary layer mean rates have decreased by 18%, while median rates have decreased by 17%. See Chart 3 in Appendix I.
In the first half of the year, we saw 144 notifications, averaging 24 notifications per month. In the third quarter of the year, however, we only received an extra 44 notifications, an average of around 15 per month, which suggests a slowdown in the number of notifications received. If this trend continues until the end of the year, we may see yearly figures very similar to those of 2024.
| 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 3 December 2025, and WTW client notifications from GB placements only, between 1 January 2007 to 30 September 2025. They will be updated periodically to reflect additional records. Graphs in this report show the moving averages between July 2022 and Q3 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).
