Pricing: Public company rates saw only slight decreases due to persistent macro risks such as interest rates, tariffs, and the prolonged government shutdown. Companies with legacy claims, or those operating in high-risk industries, such as technology, life sciences, and financial services, should prepare more thoroughly for this year’s D&O renewals and underwriting meetings due to ongoing legal and regulatory challenges. Private and nonprofit sector pricing was also steady in 2025, with higher-risk areas like education and healthcare similarly needing thorough renewal preparation.

Capacity: Capacity remained robust despite multiple insurers exiting the D&O market in 2025 as well as a frenzy of consolidation in the industry. This trend is expected to continue and further support market stabilization and a flattening rate environment. Additionally, carriers are beginning to reevaluate their capacity deployment due to current premium levels and profitability, and some have indicated potential increases.

Coverage: D&O coverage reflected an evolving risk landscape. Carriers might try to differentiate with tailored policies for growing exposures like artificial intelligence (AI), cyber risk, and regulatory changes.

Aon’s Global Risk Management Survey ranks AI as the seventh most significant current risk for technology organizations but rises to second when projecting for the next three years, even though technology organizations typically demonstrate a stronger understanding than non-technology firms of AI governance and its related risks.

Cyber, AI, regulation, and competition are becoming increasingly interconnected and are represented in the top 10 most pressing risks in the technology sector. Technology is the second-highest sector after financial institutions for disclosure of AI-related risks, based on 2023-2025 10-K analyses.

The rapid pace of AI evolution is reshaping business risks and opportunities, making it a frequent topic in boardrooms. Navigating AI-related risks and opportunities is increasingly complex and requires robust governance protocols.

According to a recent study, the leading AI risks are reputation, cybersecurity, legal and regulatory, intellectual property and privacy. Other emerging AI risks highlighted include copyright disputes, trade-secret theft, and contested use of third-party data for model training.

AI has contributed to the growth of data centers, leading major technology companies to construct their own facilities. This expansion presents unique challenges and opportunities. Aon can help assess your data center risk program; learn how in Securing Power: Global Strategies for Data Center Energy Resilience.

The largest U.S. public companies highlight reputational, cybersecurity, legal, and regulatory risks in their AI risk disclosures, exemplifying how AI risks overlap and heighten other concerns. Most AI-related D&O claims arise from company disclosures regarding the influence, or purported influence, of artificial intelligence on their operations, products, or services. While these claims share characteristics with other D&O misstatement claims, AI introduces unique risks and opportunities due to the profound impact it has on the general business landscape. Companies are advised to ensure the accuracy of public statements to reduce the likelihood of negative stakeholder and regulatory responses and potential claims.

When considering D&O coverage for AI risks, insureds should carefully consider the implications of adding specific AI language to their policies to avoid inadvertently limiting coverage.

The policy tone shifted in 2025, with the new administration’s GENIUS Act establishing a federal framework for payment stablecoins. That clarity is accelerating product roadmaps across traditional finance with banks, payments firms, and asset managers piloting stablecoin-related services. For issuers and facilitators, the implications flow directly into D&O risks with greater emphasis on disclosure, governance, and third-party risk across expanding ecosystems.

Corporate structures continue to evolve. Digital asset treasury companies are growing with deSPACs, reverse mergers, and micro-cap conversions as common paths to market access. Capital markets activity has increased in the areas of IPOs and M&A, and ETF approvals now include options beyond bitcoin. U.S. sponsors have progressed with Ethereum-related products, including consideration of staking features, which require leaders to address new operational and disclosure factors.

Risk fundamentals remain central. Custody and security are now board-level issues as institutions operate on both web2 and web3 rails. Resilience planning needs to cover keys, wallets, and critical vendors alongside traditional cyber controls. In parallel, bitcoin miners are diversifying into high-density AI and HPC data centers, bringing higher property values, business interruption exposures, and more complex supply chains.

We are seeing clients revisit D&O coverage to keep pace with regulatory change, treasury strategies, and service-provider dependencies. Programs are also being rounded out with cyber, tech E&O, crime, property and BI, and custodial risk transfer where appropriate.

Captives are being utilized to increase capacity and address emerging risks. This involves converting bitcoin and stablecoins into acceptable collateral, supporting higher retentions, and isolating volatile exposures. As a result, firms can convert balance-sheet assets into risk capital while aiming to enhance governance and capital efficiency.

A favorable regulatory environment and high investor demand on sectors like crypto and technology, alongside a desire for private companies to access public markets quickly, fueled a resurgence of special purpose acquisition companies (SPACs). SPACs accounted for over 60% of the U.S. initial public offerings (IPO) 2025 activity, with more than 100 transactions.

Despite recent SPAC activity, IPO levels are still relatively muted compared to previous peaks, primarily due to market volatility, a prolonged government shutdown, the impact of tariffs on the general business landscape, and general regulatory and market uncertainty.

To combat macroeconomic headwinds, SEC Chair Paul Atkins is trying to revitalize IPO activity with a new policy statement and rule regarding mandatory arbitration provisions and his “Make IPOs Great Again” agenda.

The SEC announced a significant policy revision to mandatory arbitration clauses in company documents that require shareholders to resolve disputes outside of court. This change may prompt more IPO-bound companies to add mandatory arbitration, as it may offer quicker and cheaper confidential dispute resolution. The impact of this revision is yet to be seen, but companies should weigh legal and reputational risks, adhere to SEC guidance, and seek input from advisors before making changes.

Paul Atkins’s broader agenda aims to reduce SEC disclosure burdens by making requirements clearer and less costly, prioritize shareholder meetings for key votes and board elections, and limit unnecessary securities litigation while protecting legitimate investor rights.

While these developments benefit potential IPO issuers, risk management and D&O coverage still demand close attention during a company’s public transition. For further guidance, refer to SPACs Return: Why D&O Risk Management Must Step Up and D&O Risks and Considerations for Businesses Planning an IPO.