2023 D&O Benchmarking Report – Insider Insights

2023 D&O Benchmarking Report – Insider Insights

Brought to You in Collaboration with Nasdaq

In this year’s second annual survey, many companies provided critical information regarding their Directors & Officers Liability insurance programs. The result is one of the only independent reports about spending and purchasing in the D&O marketplace. Our takeaway — after several years of significant increases in D&O insurance costs, we are finally seeing a reduction in both premiums and retentions.

The benefit to you? You can see how your insurance program stacks up against similar companies by both industry and market cap, independent of who placed the coverage.

The Survey Includes

  • Data from over 350 Nasdaq-listed companies.
  • Granular insurance limits to benchmark against broken down by market cap.
  • Average and median premium amounts listed by industry and market cap.

Get the Report

To access the full 2023 report, please complete this survey here.

2023 Executive Summary

View our 2023 Executive Summary for the overview of this year’s findings here.

Key Information

  • On average, companies saw their total D&O insurance program costs decrease by 35 percent, driven by lower excess and A-Side rate.
  • Recent IPOs and DeSPACs saw their retentions drop by 40 percent.
  • More than 75 percent of companies surveyed saw their premiums remain flat or decrease.

Did You See the Same Decrease as Your Peers?

Top two industries for rate decreases

25.8% Healthcare
36.7% Technology
In 2022, Healthcare and Technology were two of the industries that saw a reduction in their primary layer rates (especially for newly public companies, which the numbers above represent).

Average Premium Decrease for primary $5 M – All Industries

All Companies

  • All industries – 20.3%
  • Healthcare – 21.2%
  • Technology – 30.3%

Non-recent IPOS

  • All industries – 9.4%
  • Healthcare – 14.5%
  • Technology – 12.0%

Recent IPOS (Past 3 Year)

  • All Industries – 27.6%
  • Healthcare – 25.8%
  • Technology – 36.7%

Read Our D&O Insights here

How Does Your Retention Line Up with Other?

In addition to premiums, retentions are also significantly altered by whether or not a company recently was an IPO. Below is a small sample of the retention data captured in the survey.

Are You Buying the Right Amount of Coverage?

Benchmarking your limits and premium against your peers is very valuable information. However, it is even more important to understand what a claim settlement would look like for a company of your size. Properly sizing your D&O program could save hundreds of thousands in unnecessary premium costs.

Rate & Limit Change Observations:

Rates: Companies are PAYING less

Limits: Companies are BUYING less

Litigation Example:

Based on our exclusive database of information provided by Stanford Securities Litigation Analytics, over the past 10 years, when sued in a securities claim, a company that has a $500M – $1B market cap had the following settlements:

Total Average Limits: $34.8M

Total Median Limits: $30M

Also factor in the need to add additional costs for defense, potential sidecar derivative actions, and the unlikely SEC investigation, and all in, the average cost of risk is roughly $13M – $15M. A company that is purchasing $35M with a $2.5M retention could be potentially over-insuring by $15M – $20M in limits.

Average Settlement: $8.5M

Median Settlement: $6.5M

Get in touch 

Contact our team for more information about the report or a full D&O insurance program analysis.


This information 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 website is made available on an “as is” basis, without warranty of any kind. Baldwin Risk Partners, LLC (“BRP”), 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. BRP 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, BRP 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. Baldwin Risk Partners, LLC offers insurance services through one or more of its insurance licensed entities. Each of the entities may be known by one or more of the logos displayed; all insurance commerce is only conducted through BRP insurance licensed entities. This material is not an offer to sell insurance. © 2023 Baldwin Risk Partners. All rights reserved. Privacy Policy

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