Directors and Officers Insurance Global Market Report 2025

The directors and officers insurance market size has grown rapidly in recent years. It will grow from $30.37 billion in 2024 to $33.69 billion in 2025 at a compound annual growth rate (CAGR) of 10.9%. Growth in the historic period can be attributed to rising awareness of corporate governance, increasing regulatory scrutiny, a surge in shareholder lawsuits, expansion in mergers and acquisitions, and the growing presence of multinational corporations.

The directors and officers insurance market size is expected to see rapid growth in the next few years. It will grow to $50.34 billion in 2029 at a compound annual growth rate (CAGR) of 10.6%. Growth in the forecast period can be attributed to rising cyber threats and data breaches, greater adoption of ESG policies, increasing corporate fraud and litigation risks, broader coverage for small and medium enterprises, and regulatory modernization across emerging economies. Key trends expected in the forecast period include the integration of AI-based risk assessment tools, adoption of parametric insurance models, development of customized D&O coverage tailored to startups, rising demand for ESG-linked D&O policies, and the expansion of digital insurance platforms.

The rise in claims and litigation is expected to drive the growth of the directors and officers insurance market. Claims and litigation involve legal disputes or actions stemming from alleged misconduct, negligence, or wrongful acts that create financial or legal liability. The increase in claims and litigation is fueled by growing corporate accountability, as directors and officers face heightened scrutiny for management decisions that result in legal or financial risks. Directors and officers insurance helps reduce the impact of rising claims and litigation by offering financial protection and legal defense coverage to executives facing lawsuits or allegations related to their managerial decisions and corporate responsibilities. For example, in March 2025, the Ministry of Justice, a UK-based government department overseeing the justice system, noted that despite overall stability in total filings, 2024 recorded 1.5 million money and damage claims. Damage claims rose by 2% to 99,000 from 97,000 in 2023, and money claims increased by 8% in the fourth quarter compared with the same period in 2023. Therefore, the growing number of claims and litigation is contributing to the expansion of the directors and officers insurance market.

Major companies in the directors and officers insurance market are prioritizing innovation and market localization strategies, including the development of localized underwriting frameworks, to improve coverage relevance, enhance pricing competitiveness, and address the distinct regulatory and risk environments of domestic markets. A localized underwriting framework is a customized risk assessment and policy design approach that adapts insurance coverage, pricing, and terms to the specific regulatory, economic, and operational conditions of a given region. For instance, in August 2025, Sun Insurance Co Ltd, a Fiji-based general insurance company, introduced its new Directors and Officers (D&O) Insurance Policy, a specialized liability product created to protect corporate directors and officers from personal financial losses resulting from legal actions, regulatory investigations, or management-related claims.

In April 2025, Arthur J. Gallagher & Co., a US-based international insurance broker and risk management company, acquired Woodruff Sawyer for USD 1.2 billion. Through this acquisition, Arthur J. Gallagher & Co. seeks to expand its market presence, strengthen its risk management and insurance brokerage capabilities, and provide enhanced value to clients through combined expertise and resources. Woodruff Sawyer is a US-based brokerage and consulting firm that offers a comprehensive range of commercial property and casualty products, employee benefits solutions, and risk management services.

Major players in the directors and officers insurance market are Berkshire Hathaway, Allianz, AXA XL, Zurich Insurance Group, Chubb, Liberty Mutual, Tokio Marine Holdings, Swiss Re, Munich Re, Travelers, AIG, Sompo International, The Hartford, QBE Insurance Group, Markel Corporation, Everest Re Group, Arch Insurance Group, CNA Financial, Willis Towers Watson (WTW), Beazley.

North America was the largest region in the directors and officers insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in directors and officers (D&O) insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the directors and officers insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

The directors and officers insurance market research report is one of a series of new reports that provides directors and officers insurance market statistics, including directors and officers insurance industry global market size, regional shares, competitors with a directors and officers insurance market share, detailed directors and officers insurance market segments, market trends and opportunities, and any further data you may need to thrive in the directors and officers insurance industry. This directors and officers insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Directors and officers insurance is a form of liability insurance that protects corporate leaders from personal financial losses resulting from lawsuits that claim mismanagement or breach of duty. It covers legal defense costs, settlements, and judgments related to actions taken in their official roles. This type of insurance helps organizations attract and retain qualified executives by reducing the personal financial risks associated with leadership positions. It also supports business continuity by assisting companies during expensive legal proceedings involving their decision-makers.

The main types of claims include employment practice litigations, regulatory investigations, customer suits, and accounting irregularities. Employment practice litigations, within the scope of Directors and Officers (D&O) insurance, involve legal claims brought by employees alleging wrongful actions such as discrimination, harassment, retaliation, or wrongful termination by company management. Coverage types include Side A, Side B, and Side C, and they apply to organizations of various sizes, including large enterprises and small and medium-sized enterprises. These insurance products are distributed through channels such as brokers, direct sales, bancassurance, and others, and are used by end-users including public companies, private companies, non-profit organizations, financial institutions, and additional sectors.

The directors and officers insurance market includes revenues earned by entities through providing services such as the risk assessment, policy underwriting, claims management, legal defense coverage, financial loss reimbursement, regulatory compliance support, corporate governance consulting, crisis management assistance, risk advisory services, policy renewal, and customization. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.