AM Best expects that although renewal premium and pricing declines will continue in 2025, they are likely to moderate in light of the expanding exposures that could become more impactful for D&O insurers. (Credit: lucadp/Adobe Stock)
Renewal pricing trends for directors’ and officers’ (D&O) liability insurance remained favorable for public and private companies into the first quarter of 2025. Aggregated market renewal premiums continue to fall for certain types of accounts, particularly companies involved in initial public offerings (IPOs), special purpose acquisition companies (SPACs), and de-SPAC companies since there has been less activity involving those types of transactions during the past couple of years.
However, for many public companies, the significant renewal price decreases will likely begin to moderate, which AM Best believes could benefit the market, given the potential headwinds D&O insurers will face. Accident-year results over the near term may indicate that premiums during the past couple of years fell too far, too quickly.
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