What Canadian D&O buyers should know right now

Pricing remains buyer‑friendly but is flattening: Marsh’s Q3 2025 Global Insurance Market Index shows Canada’s composite commercial rate down ~3% with financial and professional lines (which include D&O) decreasing globally by ~5%; capacity is ample and competition is elevated. Marsh Global Insurance Market Index, Q3 2025. Complementing this, Aon’s 2025 Canada updates describe a well‑capitalized market with opportunities to broaden coverage and optimize limits. Aon Spring 2025 Canada market update.
Securities class actions in Canada ticked up materially in 2024, a key D&O severity signal: NERA reports 14 new Canadian filings in 2024 (vs. eight in 2022 and eight in 2023) and a 2024 median settlement of $11.9M—nearly double the 2018–2023 median—indicating persistent severity risk even as pricing softens. NERA, Trends in Canadian Securities Class Actions: 2024 Update (Mar 5, 2025).
Governance pressure points to monitor in 2025: climate and AI. OSFI updated Guideline B‑15 to align climate‑risk disclosures with emerging standards and phased certain requirements; Scope 3 disclosure expectations were deferred to 2028, but broader climate‑risk governance and disclosure expectations continue to tighten for FRFIs and counterparties. OSFI news release (Mar 20, 2024), Dentons client update (Mar 11, 2025). Meanwhile, Canada’s federal AI bill (AIDA, within Bill C‑27) died on prorogation in January 2025, leaving a governance gap even as US data show AI‑related securities suits increasing—raising disclosure/oversight stakes for boards. Blakes/JDSupra overview (Jan 28, 2025), NERA US securities class action review (Jan 22, 2025).
Execution in 2025 renewals: use the window. Given capacity and moderating rates, test lower retentions on primary ABC, review Side‑A excess/DIC adequacy, and negotiate broadened investigation/pre‑claim inquiry language and severability—while ensuring cyber, climate, and AI‑related event exclusions/carve‑backs align with current operations and disclosure posture. Market commentary points to continued competition but growing selectivity on sub‑optimal risk profiles. Marsh Index Q3 2025, Aon Fall 2025 Canada update, Insurance Business Canada summary of Gallagher D&O market (May 12, 2025).

Cross‑link

For coverage fundamentals and FAQs, see: Directors & Officers (D&O) Insurance.

Last updated

November 27, 2025.