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D&O outlook points to lower settlements but declining enforcement
Securities class action filings fell 11% in 2025 to 207, while the median settlement jumped 21% to $17 million, a 10-year high, even as SEC enforcement hit a decade low.
D&O market data shows a split picture for 2025 and early 2026, with filings down but settlements and enforcement trends not moving in tandem. Insurance Business reports total securities class action filings fell 11% in 2025 to 207, according to WTW’s 2026 D&O outlook.
At the same time, the median securities class action settlement rose 21% to $17 million, described as a 10-year high, even as average settlement values and total aggregate recoveries declined. Insurance Business adds that SEC enforcement actions dropped 30% in fiscal year 2025, the lowest level in a decade based on D&O Diary analysis of Covington law firm data.
Insurance Business also highlights that apparent “calm” in enforcement may mask different types of claims. At an Insurance Business professional risks roundtable, Willis management liability coverage leader Larry Fine said the market shows offsetting drivers, including more volume of private securities class actions, fewer SEC actions, less pro-ESG litigation, more anti-ESG claims, and increased AI-related claims that are largely similar to other claim types.
The article notes limitations in interpreting outcomes from settlement and recovery figures alone. Insurance Business cites WTW’s outlook warning that settlement and recovery data can be constrained in how well it reflects the broader claims environment.