Overview
Through 2024, the public D&O market remained highly competitive, with rate reductions still widely available for most insureds. That said, most public company clients experienced more muted rate decreases after consecutive years of meaningful premium cuts, especially in the second half of 2024 and approaching year-end.
We continue to believe that soft market conditions are primarily driven by an exaggerated supply/demand imbalance across the marketplace. While the supply side remains high due to both existing and new market entrants eager to compete on fresh opportunities, we anticipate that an expected increase in demand for 2025 may bring some stability to the current rate environment.
Marketplace trends
Pricing
Both newly public (within the past three years) and existing public company insureds continued to secure premium reductions across their D&O programs, of varying magnitude. Rate decreases for newly public companies continued to outpace those available for existing public firms based on higher premiums typically associated with IPO business. Nevertheless, existing public company renewals still experienced meaningful premium cuts throughout the year, usually north of 15 percent.
Looking into 2025, we expect some deceleration in rate decreases for most insureds. While decreases will remain available, we anticipate insurers will take a more cautious approach across D&O business as they assess overall portfolios following two years of aggressive rate reductions. An uptick in capital markets activity may also serve to reduce competition on renewal business, where rates are approaching pre-hard market levels.
Capacity
Insurance capacity remains readily available across the D&O space, with slower capital markets activity through 2024 limiting new public company business for insurers. While some insurers have exited the marketplace or begun to pare back public D&O exposure, certain others have entered (or re-entered) the marketplace seeking to grow. Absent significant new claims activity or severe adverse developments across existing claims, we anticipate D&O capacity to remain stable and abundant.
Current strong economic conditions and investor sentiment are bullish for a meaningful uptick in IPO activity for 2025. Should this come to fruition, we expect many insurance carriers will look to deploy their capital on this new business, typically associated with higher premiums and self-insured retentions.
What to expect for 2025
Overall, it is anticipated that 2025 will be another positive year for most insureds, with premium decreases still available for those with favorable risk profiles. However, this will likely be to a lesser degree than in the past two renewal cycles. Insureds seeking to drive more material premium savings may need to consider shifting primary layers away from established insurers and partnerships. Instead, they could consider newer, more aggressive market entrants, who may have limited data available regarding claims-paying history and general market behavior.
2025 D&O underwriter survey highlights
We surveyed over 100 public company underwriters across the United States and London for their expectations on pricing, capacity, and areas of concern heading into 2025.
- The industry heat map represents a weighted average of underwriter concern by industry: SPACs, Educational, and FI-Banks, all with noteworthy year-over-year increases in concern.
- 73 percent of underwriters indicated that they expect 2025 primary rates to be +/- 5 percent.
- Securities claims lead the list of public underwriters’ concerns, ahead of bankruptcy, derivative claims, and others;
- Several underwriters shared comments around perceived pricing inadequacy, noting the current pricing environment as unsustainable.
- 75 percent of respondents see rates as flat or up 5 percent -10 percent for higher-concern industry groups.
Industry heat map

Boardroom hot topics for 2025
- Artificial intelligence (AI) and generative AI
- Cybersecurity and the SEC’s evolving cybersecurity disclosure requirements
- Impact of the newly elected political administration on capital markets, regulations and oversight, disclosure requirements, and the geopolitical landscape
Additional insights can be found in The Baldwin Group/Nasdaq D&O Benchmarking Report which is slated to be released in early March.
For more information
We’re ready to help when you are. Get in touch and one of our experienced Baldwin advisors will reach out to have a conversation about your business or individual needs and goals, then make a plan to map your path to the possible.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.