Christian Hartman, vice president-executive assurance, large commercial group at Arch Insurance, and Stephen Kelly, director, Alliant Insurance Services, sat down for a video interview at Nareit’s REITwise: 2026 Educational Conference in Hollywood, Florida, March 24-26.
The interview pointed out that in today’s REIT D&O insurance landscape there are fewer filings, but with far greater financial impact. Securities class action filings dropped 9% in 2025, yet total disclosure dollar loss hit a record $694 billion—up 62% year over year—driven by higher market caps, volatility, and rising defense costs. As Hartmann noted, “that really resulted in really significant severity concerns from the industry as a whole.”
REIT litigation trends remain relatively stable, with one to five cases annually, mostly tied to accounting and disclosure issues. However, emerging risks—like lawsuits triggered by short-seller reports—are increasing exposure, even without proven wrongdoing.
On the insurance side, the D&O market is transitioning from a soft cycle toward stabilization. After years of declining premiums, rates are flattening, with early signs of increases as insurers respond to losses and reduced capacity.
Kelly underscored that REIT-focused programs, like Nareit’s, help differentiate these companies by highlighting their unique structures, enabling more favorable underwriting outcomes despite a tightening market.