D&O insurance renewals: Finding solutions for complex management liability risks

As the directors’ and officers’ (D&O) insurance market evolves, brokers face changing renewal conditions and increasing scrutiny of complex risks. Explore D&O insurance renewal trends, complex management liability risks and how specialist access to Lloyd’s and the London market can help brokers find cover.

The directors’ and officers’ insurance market offers opportunities for brokers and their clients, with competitive capacity and pricing across many risk categories. But not every business benefits equally. Financial institutions, distressed companies and organisations facing litigation or complex management exposures may encounter more restrictive terms or difficulty obtaining cover. Understanding what underwriters want, preparing effectively for renewal and knowing where to look for alternative capacity can make all the difference. With specialist expertise and direct access to Lloyd’s and the wider London insurance market, Costero Brokers can help you navigate these challenges and secure appropriate management liability solutions, even for difficult-to-place risks.

Why are D&O insurance renewals changing?

Following several years of falling premiums and increasing competition, the D&O insurance market is showing signs of stabilisation.

According to insurance industry rating agency AM Best, 2025 marked the fourth consecutive year of declining D&O premiums. However, rising claims pressures and narrowing underwriting margins could lead to more selective underwriting and firmer pricing. (Source: Insurance Journal)

Global insurance broker and risk adviser WTW’s October 2026 outlook also anticipates broadly stable D&O pricing, with flat renewals or modest increases for many businesses, although outcomes continue to depend on individual exposures. (Source: WTW)

This changing environment means that the outcome of a D&O renewal increasingly depends on the individual risk, rather than broader market conditions alone.

For brokers, three areas deserve particular attention:

• Pricing: Many well-performing businesses continue to benefit from competitive pricing, but reductions are becoming harder to achieve, while distressed or claims-affected organisations may face increases.
• Retentions: Insurers may offer stable or reduced retentions for attractive risks but require higher retained exposures where claims, litigation or financial concerns create uncertainty.
• Capacity: Primary and excess D&O capacity remains widely available, although insurers may be more cautious about individual line sizes, coverage terms and certain industry sectors.

These trends are not uniform. Public companies, private businesses and financial institutions each present different exposures, and their renewal experience can vary considerably.

In the US, public company D&O renewal pricing remained broadly stable during the first half of 2026, with insurers continuing to compete on coverage enhancements. (Source: Business Insurance)

Different businesses, different management liability challenges

The risks facing directors and senior executives have become increasingly varied.

Public companies may face shareholder litigation, allegations of misleading disclosures or questions about board oversight. Private businesses can encounter disputes involving investors, creditors, employees or business partners.

Financial institutions face additional exposures involving professional negligence, regulatory investigations, fiduciary duties and financial crime, potentially requiring a combination of D&O, professional indemnity and other specialist insurance policies.

Emerging technologies are adding new dimensions to these risks. US securities class action filings rose by 30% to 121 in the first half of 2026, compared with the second half of 2025. Cases involving artificial intelligence (AI) were a notable contributor. (Source: Cornerstone Research)

These developments underline why appropriate D&O and wider management liability protection matters, even when insurance capacity appears plentiful.

They also highlight the importance of reviewing policy wording, exclusions, limits and protection for individual directors, including Side A D&O coverage where appropriate, rather than concentrating exclusively on premium.

What do D&O underwriters want to see at renewal?

A well-prepared renewal submission can make a significant difference to the terms available, particularly where a business has experienced financial or operational difficulties.

Underwriters need a clear understanding of the organisation, its management, financial position and potential liabilities.

Your renewal submission should address several key areas:

• Financial performance: Recent accounts, liquidity, debt obligations, refinancing arrangements and realistic financial forecasts.
• Corporate governance: Board composition, oversight procedures, risk management controls and management experience.
• Claims and litigation: Details of previous or ongoing disputes, notifications, investigations and steps taken to address underlying issues.
• Business developments: Acquisitions, restructuring, changes in ownership, new territories or significant operational changes.
• Risk management: Evidence of effective compliance, cybersecurity, financial controls and oversight of emerging exposures.
• Existing insurance arrangements: Current policy limits, retentions, exclusions, coverage gaps and any changes required for the coming policy period.

Early engagement is particularly important. Giving underwriters sufficient time to understand a complex risk allows for more meaningful discussions about potential coverage structures and terms.

Declined or restricted? Finding cover for hard-to-place risks

Even in a competitive insurance market, some businesses struggle to obtain suitable management liability protection.

Common challenges include:

• Financial distress: Companies experiencing losses, liquidity problems, restructuring or potential insolvency.
• Adverse litigation history: Organisations with previous claims, shareholder disputes or regulatory investigations.
• Unusual corporate structures: Businesses with complicated ownership arrangements, multiple subsidiaries or international operations.
• Emerging business models: FinTechs, digital asset businesses and other organisations whose exposures do not fit traditional underwriting categories.

For these clients, a refusal from one insurer does not necessarily mean that appropriate cover is unavailable elsewhere.

An experienced specialist broker can explore different approaches, including alternative insurers, revised retentions, excess D&O layers and dedicated Side A protection for individual directors and officers.

However, successful placement depends on presenting the risk transparently and understanding the limits of available coverage. Existing claims and previously known circumstances, for example, may be excluded from new cover, making policy continuity and the treatment of prior notifications particularly important.

The objective is to find a sustainable solution that offers meaningful protection while meeting insurers’ underwriting requirements.

What can Lloyd’s and the London market offer?

For US and international brokers whose domestic markets cannot provide sufficient capacity or flexibility, Lloyd’s and the wider London company insurance market can offer valuable alternatives.

London brings together specialist insurers and underwriters with experience of unusual, complex and multinational risks.

Through a Lloyd’s broker, you may be able to access:

• Specialist underwriting expertise: Insurers experienced in complex financial institutions, management liability and emerging exposures.
• Additional capacity: Opportunities to supplement domestic insurance programmes with London market participation.
• Flexible programme structures: Primary, excess and specialist coverage arrangements tailored to individual requirements.
• International experience: Expertise in handling risks involving multiple jurisdictions, subsidiaries and regulatory environments.
• Alternative solutions: Options for risks that have been declined, restricted or inadequately served by domestic insurers.

Lloyd’s brokers provide an established route into the market, using their specialist knowledge to negotiate suitable insurance terms and conditions with Lloyd’s underwriters. (Source: Lloyd’s)

London is not necessarily a replacement for the domestic market. Frequently, the best solution involves combining domestic and London market capabilities to achieve the appropriate balance of coverage, capacity and cost.

For brokers without direct London market access, working with an established Lloyd’s broker provides an effective route to these opportunities.

Finding the right partner for your D&O challenges

At Costero Brokers, we understand that management liability risks rarely fit neatly into standard categories.

Our specialist Professional and Financial Institutions team has extensive experience arranging D&O, errors and omissions (E&O), and related insurance solutions for clients across North America and internationally.

As an independent Lloyd’s broker, we work closely with our broking partners to understand their clients’ exposures, identify suitable underwriting markets and develop appropriate placement strategies.

Whether you are seeking improved D&O renewal terms, additional capacity or protection for an unusual or distressed risk, we can help you explore your options.

Our independence, specialist knowledge and access to Lloyd’s and London company insurers allow us to approach challenging placements creatively, while remaining focused on practical outcomes.

We particularly welcome the risks that other markets find difficult to accommodate.

Talk to us about your management liability insurance needs

Changing D&O market conditions make specialist expertise and market access more valuable than ever.

If your client faces a difficult renewal, restrictive terms or a management liability risk that domestic insurers are reluctant to cover, there may be other options worth exploring.

Learn more about our ProFin and Casualty insurance solutions, or contact Costero Brokers to discuss your requirements with our insurance experts.