Primary D&O Pricing Firms Up at Midyear, Ending 16-Quarter Streak of Rate Declines

Directors’ and officers’ liability pricing for U.S. public companies turned upward in the second quarter of 2026, breaking a lengthy stretch of quarterly price declines in the primary D&O layer, according to analysis by Aon’s Financial Services Group.

The average price change for primary policies renewing with the same limit and deductible was up 0.6% compared with the second quarter of 2025, while the median and mode price change was zero, Aon reported. For programs renewing with the same total limit, average price also rose, up 0.5% compared with the year-earlier quarter.

Despite the uptick, Aon’s overall D&O Pricing Index, which tracks premium relative to a 2001 base year, decreased to 1.04 in the second quarter of 2026 from 1.06 in the second quarter of 2025, with the average price per million of coverage down 1.9% over the same period. Aon attributed the divergence to changes in the mix of limits and clients renewing during the quarter, which can affect the broader index differently than the like-for-like primary comparison.

Primary Market Shows Signs of Firming

Aon said the data showed a D&O market in transition. Of primary policies renewing with the same limit and deductible in the second quarter, 25% experienced a price decrease, 47% renewed flat and 28% saw an increase. Among policies with decreases, the average drop was 5.7% and the median decrease was 5%. Among those with increases, the average was 7.4% and the median was 5%.

Aon said “the market appears to be firming, as primary pricing has increased for the first time in 16 straight quarters and total program pricing also increased.”

The monthly breakdown within the quarter showed some volatility. In April, average primary price change was up 2.1%, with 21% of policies decreasing, 50% flat and 29% increasing. In May, pricing dipped, with the average down 0.9%, as 31% of policies saw decreases, 47% renewed flat and 22% increased. By June, pricing turned positive again, with the average up 0.8%, as 23% of policies decreased, 45% renewed flat and 32% increased.

Total Program Pricing Also Ticks Higher

Beginning in the first quarter of 2026, Aon started reporting total program pricing changes for D&O programs renewing with the same limit, capturing how excess layers affect overall program cost. In the second quarter, 28% of these total programs received a price decrease, 46% renewed flat and 26% saw an increase, producing an average increase of 0.5% and a median change of zero. Among programs with decreases, the average was 6% and the median was 3.6%. Among those with increases, the average was 8% and the median was 4.4%.

Renewal patterns remained largely stable. Aon reported that 98% of primary D&O policies renewed with the same limit, 87% renewed with the same deductible, and 85% renewed with both the same limit and deductible. Carrier retention also stayed high, with 96% of primary policies renewing with the same carrier and only 4% moving to a different primary carrier.

Securities Litigation Ticks Up Slightly

Aon also tracked federal securities class action filings, shifting its data source in 2026 to Securities Litigation Analytics (SSLA), which does not include IPO allocation, analyst and mutual fund filings. Under the revised methodology, Aon said SSLA counted 49 federal securities class actions in the second quarter of 2026, up five from the second quarter of 2025. Aon noted that historical figures in its charts have been restated to reflect the SSLA methodology, and that full-year 2026 totals reported in its charts are partly estimated based on 2025’s third- and fourth-quarter filing activity.

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