Procurement Market Intelligence Report
Directors & Officers Liability Insurance
Sourcing Guide & Market Intelligence
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Directors & Officers Liability Insurance Global Overview
Definition
Summary
Directors and officers (D&O) liability insurance insulates policyholders from financial losses due to legal claims of mismanagement, negligence, or other wrongful acts levied against their directors and officers. Buyers of D&O liability insurance include all kinds of businesses, however some common buyers are healthcare providers, manufacturers, financial institutions, and educational institutions.
This Report Includes:
- Securities, Negligence, and Misconduct Lawsuits
- Business Liability Insurance
Not in this Report:
- Professional Indemnity Insurance
- Business Interruption Insurance
- Workers' Compensation Insurance
Global Directors & Officers Liability Insurance Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 215 |
| #2 United States | 150 |
| #3 Europe | 135 |
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Geography Drilldown - US
Average Cost of Directors & Officers Liability Insurance
United States
2026 Market Pricing$500.00 to $XX,XXX.XX
per year per million dollars in coverageAverage Price
Prices in the Directors & Officers Liability Insurance market range from $500.00 to $XX,XXX.XX, depending on Buyer's Industry, Buyer's Financial Performance, Breadth of Coverage and Buyer's History of Operations. For example, lower prices are associated with Healthcare companies ($3,578 to $4,078 per year per million dollars of coverage) and Non-profits ($500 to $1,104 per year per million dollars of coverage), whereas higher prices are associated with Manufacturers ($6,652 to $7,652 per year per million dollars of coverage), Financial institutions ($4,396 to $5,396 per year per million dollars of coverage) and IT/technology companies ($5,704 to $6,704 per year per million dollars of coverage).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Directors & Officers Liability Insurance Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Directors & Officers Liability Insurance market, prices in the US have grown 0.6% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Directors & Officers Liability Insurance
Total cost of ownership is Medium in the Directors & Officers Liability Insurance market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Hidden Fees may raise the total cost of ownership unexpectedly.
Negotiated Before
Financing
Customization
Billed During
Additional Fees
Unforeseen
Hidden Fees
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.1 in the United States. Buyer power is most positively impacted by Availability of Substitutes. It is most negatively impacted by Price Driver Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Copier & Office Equipment Wholesalers
- Reinsurance Carriers
- Portfolio Management Firms
- Computer & Packaged Software Wholesalers
2nd
Tier Suppliers
- Copier & Optical Machinery Manufacturers
- Insurance Brokers & Agencies
- Finance & Insurance Firms
- Computer Manufacturers
Biggest Directors & Officers Liability Insurance Suppliers in the US by Revenue
The largest Directors & Officers Liability Insurance vendors by revenue in the US are Sompo Holdings, Inc., AXA AS and W. R. Berkley Corp. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Chubb Ltd | Global | ZURICH | >10,000 | 10-15 | ||||
| American International Group, Inc. | Global | NEW YORK, NY | >10,000 | 10-15 | ||||
| AXA AS | NEW YORK, NY | 1,001-10,000 | 15-20 | |||||
| Tokio Marine Holdings, Inc. | Global | Tokyo, JP | >10,001 | 5-10 | ||||
| Berkshire Hathaway Inc. | Global | Omaha, NE | >10,000 | 5-10 | ||||
| Zurich Insurance Group Ltd. | Global | Zurich, CH | >10,001 | < 5 | ||||
| The Travelers Companies, Inc. | Global | SAINT PAUL, MN | >10,000 | < 5 | ||||
| Marsh & Mclennan Companies, Inc. | Global | NEW YORK | >10,000 | < 5 | ||||
| CNAFinancial Corp | International | CHICAGO, IL | 1,001-10,000 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Directors & Officers Liability Insurance market is 12.9% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
D&O liability insurers are, on average, not at risk financially, as there is a steady demand for D&O liability insurance. Insurance companies also generally have low costs and high, stable profit margins, which give insurers some additional room to negotiate on premiums without significantly affecting their ability to operate.
There is moderate market share concentration in the D&O liability insurance market, which allows the top market insurers to exert some control over premiums in the market. The top four suppliers in the market account for between 30.0% to 45.0% of the market share.
There is moderate supply chain risk in the D&O liability insurance market. However, the moderate risk rarely affects prices as insurers do not rely significantly on products or services to operate.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
American International Group, Inc.
American International Group, Inc. is a public company operating globally in the finance and insurance sector. The company's offerings include product warranty insurance, building & contents insurance, commercial auto & truck insurance, cargo insurance, marine insurance. Founded in 1919, the company is currently... Subscribe to learn more
Chubb Ltd
Chubb Ltd is a public company operating globally in the finance and insurance sector. The company's offerings include commercial auto & truck insurance, cargo insurance, marine insurance, business interruption insurance, supply chain insurance. Founded in 1882, the company is currently headquartered in ZURICH,... Subscribe to learn more
AXA AS
AXA AS is a public company operating in the finance and insurance sector. The company's offerings include marine insurance, professional indemnity insurance, group travel insurance, life insurance, directors & officers liability insurance. The company is currently headquartered in NEW YORK, New York, United... Subscribe to learn more
Berkshire Hathaway Inc.
Berkshire Hathaway Inc. is a public company operating globally in the utilities, manufacturing and finance and insurance sectors. The company's offerings include truck trailers, natural gas, commercial auto & truck insurance, professional indemnity insurance, group travel insurance. Founded in 1929, the company... Subscribe to learn more
Tokio Marine Holdings, Inc.
Tokio Marine Holdings, Inc. is a public company operating globally in the finance & insurance sector. The company's offerings include marine insurance, group travel insurance, directors & officers liability insurance and cybersecurity insurance. Founded in 1879, the company is currently headquartered in Tokyo,... Subscribe to learn more
Allianz Se
Allianz Se is a public company operating globally in the finance & insurance sector. The company's offerings include investment management services, marine insurance, business interruption insurance, supply chain insurance, professional indemnity insurance. Founded in 1890, the company is currently headquartered... Subscribe to learn more
American Financial Group, Inc.
American Financial Group, Inc. is a public company operating globally in the finance and insurance sector. The company's offerings include directors & officers liability insurance. The company is currently headquartered in Cincinnati, Ohio, United States of America with an estimated 6900 employees. Subscribe to learn more
CNAFinancial Corp
CNAFinancial Corp is a public company operating internationally in the finance and insurance sector. The company's offerings include marine insurance, business interruption insurance, supply chain insurance, directors & officers liability insurance and cybersecurity insurance. Founded in 1897, the company... Subscribe to learn more
Marsh & Mclennan Companies, Inc.
Marsh & McLennan Companies, Inc. is an insurance and advisory services provider to commercial and consumer clients. It organizes its products into two segments: the Risk and Insurance Services segment, which delivers risk management activities, insurance, and reinsurance broking and services, and the Consulting... Subscribe to learn more
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Procurement Management KPIs for the Directors & Officers Liability Insurance Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Order Value and Claims Settlement Ratio. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Order Value |
|
Total revenue Number of policies |
The average order value can be used to evaluate a company’s reputation. In this market's context, average order value pertains to the size of D&O insurance policies. The average order value can be used to assess a company’s ability to provide insurance coverage to large organizations. Large buyers looking to procure D&O insurance should avoid insurance providers who do not have a history of providing large coverage policies. |
| Claims Settlement Ratio |
|
Amount of time required to settle and close an insurance claim Time when claim is initially filed |
The claim settlement ratio indicates the average amount of time it takes for an insurance company to settle D&O liability claims. A high ratio implies that the insurer is more likely to honor claim payouts. Timely settlement of claims can be important for directors and officers who may face legal actions or financial liabilities. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Qualifications
How long has your company been operating in the D&O liability insurance market?
What is the average size of a policy you manage? Have you previously managed policies for groups of my company's size?
Competition
How do you attract new clients and retain existing clients?
(If a large company): How do you compete with the emergence of smaller players in the market?
Experience and Expertise
How do you recruit and retain senior staff?
What are the various stages of your hiring process? What specialized skills do you require your employees to possess?
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Directors & Officers Liability Insurance RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their organization(s), including the industry, products and services offered, location(s), and type of ownership.
Buyers should briefly describe their existing policy's coverage and rates, as well as their need for new coverage.
Statement Of Need
Buyers should give a detailed description of the breadth of coverage required, including coverage limits, covered events, and coverage types (i.e., side A, B, or C).
Buyers should specify the minimum credit ratings the insurer must have.
Project Budget
Buyers should request a detailed breakdown of insurers’ premium rates.
Buyers should outline any other costs for which insurers are responsible (e.g., mailing documents).
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