The Directors & Officers (D&O) insurance market continued to stabilize in 2026 as premiums moderated across many industries, according to a new benchmarking report from The Baldwin Group and Nasdaq. The fifth annual 2026 Directors & Officers Benchmarking Report examined market trends following the record-high premium environment seen in 2022.
The report found that 54% of companies experienced premium changes within ±10% year over year. Meanwhile, 30% reported moderate premium decreases ranging from 10% to 30%. Only 10% of companies saw premium reductions greater than 30%. According to the report, this distribution reflects a market that is stabilizing rather than continuing to soften.
“The D&O market has clearly moved into a more balanced environment,” said Mike Tomasulo, senior managing partner at The Baldwin Group. “While we are still seeing competition among insurers, especially on excess layers, there also seems to be a more disciplined approach from primary carriers that are less willing to extend premium and retention decreases without the risk exposure justifying it.”
Industry Differences Continue Across Sectors
The report also highlighted ongoing differences among industries. Healthcare and technology companies continued to carry the highest premiums and retentions because of their elevated exposure to securities litigation.
At the same time, companies in the materials, consumer discretionary, and industrial sectors experienced some of the largest premium decreases. According to the report, those reductions reflect areas where pricing corrected more sharply after recent market volatility.
Companies Increase D&O Limits
As pricing pressure eased, organizations adjusted their risk transfer strategies. The report found that average total D&O limits increased to $66 million in 2026.
The report noted that the increase in average limits reflects both a more favorable pricing environment and a greater presence of large-cap buyers in the market. As a result, many organizations used the improved pricing conditions to reassess program structures and rebuild limits after the hard market cycle.
IPO Activity May Influence Future Market Conditions
The report stated that future D&O market conditions may remain closely connected to broader capital markets activity. In particular, IPO and de-SPAC activity, historically concentrated in the $250 million to $1 billion market capitalization range, continues to influence D&O pricing and retention levels because of the elevated litigation risks associated with newly public companies.
The report also noted that IPO activity has shown broader signs of recovery. According to the findings, sustained increases in public listings could represent the next major shift in D&O pricing, especially among growth-stage companies.
Benchmarking Remains Important for Organizations
As companies continue to navigate litigation trends, regulatory scrutiny, and changing capital market conditions, the report emphasized the importance of aligning D&O programs with peer benchmarks to manage costs and maintain adequate coverage.
Tomasulo said understanding how a company’s program compares across pricing, limits, structure, and coverage terms can help organizations make more informed decisions about coverage and risk management.
ABOUT THE D&O BENCHMARKING REPORT
Produced in collaboration with Nasdaq, The Baldwin Group’s D&O Benchmarking Report provides a data-driven overview of public company D&O program structures by industry and market capitalization. Findings are drawn from more than 250 companies and offer unique insight into the alignment between purchased insurance limits and real-world claim activity. Please note that this report should be used as a guide and does not constitute individualized financial advice. The full report is available to companies that completed the benchmarking survey.
ABOUT THE BALDWIN GROUP
The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. (NASDAQ: BWIN) (“Baldwin”) and its affiliates, is an independent insurance distribution firm providing indispensable expertise and insights that strive to give our clients the confidence to pursue their purpose, passion, and dreams. As a team of dedicated entrepreneurs and insurance professionals, we have come together to help protect the possible for our clients. We do this by delivering bespoke client solutions, services, and innovation through our comprehensive and tailored approach to risk management, insurance, and employee benefits. We support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our organic and inorganic growth. The Baldwin Group proudly represents more than three million clients across the United States and internationally. For more information, please visit www.baldwin.com.
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