| Coverage | Trend | Range |
|---|---|---|
| Public company: Primary ABC |
|
Flat to +2% |
| Public company: Excess ABC |
|
Flat to +5% |
| Public company: Side A DIC |
|
Flat |
| Private company: Primary/excess ABC, Side A DIC |
|
Flat to +5% |
Key takeaways
- Public: The market remains competitive, with the abundance of capacity moderated by continued pressures toward rate stabilization.
- Private: Stable risk profiles continue to see enhanced competition, with a floor of flat renewals and potential decreases when marketed.
- Limit adequacy assessments should be top of mind amid rising legal defense costs, social inflation and escalating litigation trends.
- Where insurers may resist favorable pricing, policyholders should consider opportunities for enhanced coverage.
Developments and market drivers to watch
- Securities class actions (SCAs)
- SCA filing activity increased in the first half of 2026, with 121 new filings, exceeding historical half year averages. SCA settlement activity also increased during the first half of 2026, with median settlements increasing from $17 million to $20 million year on year.
- In July 2026, the Fourth Circuit in State of Rhode Island Office of the General Treasurer v. The Boeing Company reversed class certification, holding that the plaintiffs failed to satisfy the requirements of Comcast Corp. v. Behrend because they did not present a sufficiently specific, non-speculative classwide damages methodology tied to their theory of liability. Comcast related to antitrust allegations; the Fourth Circuit’s extension of this type of damage-theory pleading burden to SCAs is arguably in conflict with the Second Circuit’s decision in Waggoner v. Barclays PLC. Consequently, at least in the Fourth Circuit, securities defendants may now finally have an argument to successfully challenge class certification.
- In June 2026, the Second Circuit in Huey v. Anavex Life Sciences Corp. signaled heightened scrutiny of loss causation pleadings, potentially increasing dismissal risk where alleged losses do not closely align with corrective disclosures or can be attributed to broader market movements.
- Regulatory enforcement activity: Regulatory enforcement activity declined materially since the administration transition in January 2025. The SEC initiated 56 enforcement actions against public companies and subsidiaries in FY 2025 ending September 30, 2025, with only four actions brought under the new administration. Total monetary settlements were approximately $808 million, substantially below prior years and less than half the average annual total recorded during FY 2016–24.
AI-related securities class action activity continues to accelerate. Cornerstone Research identified 15 AI-related filings in the first half of 2026, nearly equaling the 16 filings recorded during all of 2025 and placing 2026 on pace for a record year of AI-related securities litigation. Recent filings, however, reflect a broader range of disputes, revealing a shift from earlier “AI washing” claims focused on alleged overstatements of AI capabilities and use toward cases alleging that companies failed to adequately disclose AI-related risks.
Commercial Chapter 11 filings reached 4,589 in the first half of 2026, a 28%increase from the first half of 2025, continuing the upward trend that followed pandemic-era lows. Rising financing costs, liquidity pressures, sector-specific challenges and broader economic uncertainty continue to contribute to restructuring and insolvency activity.
Public offering activity rebounded in the first half of 2026, with issuance levels exceeding those seen during the same period in 2025. Nevertheless, economic and geopolitical uncertainty may moderate IPO activity in the second half of the year and into 2027.
Underwriting appetite for IPO risks remains strong, with abundant market capacity supporting favorable coverage options. Pricing for many IPO risks is generally more competitive than the broader D&O market, although terms, retentions and underwriting requirements continue to vary based on company-specific risk characteristics.
Disclaimer
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
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