1.1
D&O Market Update
Rates for Public Companies
Mature Company Premium Rates
Annual Cost Reduction by Public Company Maturity
Pricing continues to decline for mature public companies, though the rate of those decreases has steadily moderated. This trend is especially evident when focusing on pricing for the primary layer of coverage. In 2025, the median premium reduction in this segment is 5%. That’s a notable shift from the high single-digit decreases seen in 2024 and the steeper 14%–22% median reductions experienced in 2023. The market appears to be stabilizing, even as buyers continue to benefit from favorable conditions.
Median Cost Change Trend For Mature Public Companies
For the excess layers on D&O program towers, two dynamics are shaping the market. For starters, new entrants are still struggling to gain traction and market share. In a competitive soft market, these unproven carriers are rarely chosen for primary layers or for critical excess positions. That’s because established carriers are aggressively moving down the tower to secure layers with more rate. As a result, buyers are seeing reductions across their total programs—but carrier appetite for the high excess layers could be close to capacity.
Rather than bind a cheap excess layer, some established carriers have been comfortable walking entirely away from deals. Two carriers, whose books consisted of high excess exposure, withdrew from the public company D&O space this year. The sustainability of excess rates in a still-crowded marketplace will hinge on how claims trends unfold later this year and in 2026.