Directors and Officers Insurance Market Report 2026

The directors and officers insurance market size has grown rapidly in recent years. It will grow from $33.69 billion in 2025 to $37.31 billion in 2026 at a compound annual growth rate (CAGR) of 10.7%. The growth in the historic period can be attributed to increasing corporate litigation frequency, rising complexity of regulatory environments, growth in public company listings, expansion of global compliance requirements, increasing shareholder activism.

The directors and officers insurance market size is expected to see rapid growth in the next few years. It will grow to $55.55 billion in 2030 at a compound annual growth rate (CAGR) of 10.5%. The growth in the forecast period can be attributed to increasing exposure to cybersecurity and data privacy claims, rising adoption of ESG governance practices, growing demand from SMEs for executive protection, expansion of cross-border regulatory enforcement, increasing reliance on data-driven underwriting models. Major trends in the forecast period include increasing demand for cyber liability coverage, rising focus on regulatory investigation protection, expansion of coverage for data privacy and esg risks, growing customization of policy structures, enhanced use of analytics in underwriting.

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 companies operating 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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the directors and officers insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the directors and officers insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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