D&O

global trends 2025

Increased regulation,
ESG exposures and
macro-economic risk
dominate as more
claims upheld
D&O insurance: global trends 2025

contents
1. Introduction 3
2. Market overview 4
3. Economic pressures are reshaping the market 7
4. ‘Responsibility for everything’
increases directors’ ESG liability 8
5. Litigation is rising 10
6. What do buyers want and
how are wordings changing? 12
7. New year, new rules 14
8. Trends to watch 15
9. CONCLUSION & Methodology 16

2
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 D&O insurance: global trends 2025

"Regulation and
sanctions have become INTRODUCTION
the primary concerns
for many, with Welcome to the second Global Insurance Law Connect report on
increasing burdens the Directors’ and Officers’ (D&O) insurance market.
in areas such as ESG,
sustainability, In our first report, released in 2021 in the wake of the COVID-19 pandemic, our members identified
and cyber risk." trends of increased corporate M&A and a changing risk profile due to remote working and other
pandemic-related impacts. There was a consensus that D&O cover prices were rising across
the board, driven by factors such as growing cyber exposure, escalating regulatory pressures,
and emerging concerns related to environmental, social, and governance (ESG) issues.
In this edition, the range of concerns has broadened since the previous report, with ESG
factors and macro-economic conditions joining cyber and regulatory as major issues for
directors and officers. Members surveyed this year also identify a growing likelihood that
claims against directors will be upheld, along with a significant increase in the demand for
broader D&O cover.
In this dynamic and complex environment, we recognise that local expertise is essential,
particularly as our data shows a marked polarisation between mature and developing markets,
including aspects of capacity and pricing. For more detailed and region-specific insights, we
encourage you to contact your local firm within our network.
We hope this report serves as a valuable resource, and we look forward to discussing with
you what the future holds for the D&O market in 2025.

Best wishes

Gillian Davidson
This document does not present a complete Global Insurance Law Connect – Chair
or comprehensive statement of the law, nor
does it constitute legal advice. It is intended
only to highlight issues that may be of
interest to customers of Global Insurance
Law Connect. Specialist legal advice should
always be sought in any particular case.

Designed and produced by Doublelix Ltd.

[Link]

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D&O insurance: global trends 2025

Market overview

The 24 markets represented by the member Regulation, ESG and macro-

economic issues dominate D&O
firms surveyed for this report vary significantly, market sentiment
ranging from the highly mature markets to
• The primary concern highlighted by 74% of the members surveyed
those that are still developing.
was legislation and regulation, which was seen as having the most
This diversity of experience results in different significant impact on markets.
• Over half the respondents expressed concerns around ESG factors
strategies in terms of insurance capacity, policy (57%) and macro-economic conditions (52%).
wordings and pricing. However, there is a clear • 48% of firms cited cyber risk as having a strong influence on D&O
market sentiment.
consensus across jurisdictions regarding the
This situation contrasts sharply with the landscape when the last
key factors that influence the sector. D&O report was released. At that time, the world was still recovering
from the COVID-19 pandemic and navigating significant aftershocks
related to pricing and an altered global risk landscape. Regulation was
What is having the greatest influence on the not typically mentioned as a major area of concern, although there
D&O market? were early indications of increasing regulatory pressures coinciding
with the growing sophistication of the global D&O market.
In the previous report from 2021, ESG concerns were mentioned only
Legislation and 74%
regulation briefly, but there has been a notable rise in the number of respondents
acknowledging these issues in 2024. Cyber risk, which many identified
ESG
57% in 2021 as a “dominating issue for D&O insurers”, continues to be a
concerns
Macro-economic significant focus for many jurisdictions in this current report.
52%
conditions
More claims being upheld
CYBER 48%
Legislation and regulation impact every market. As stakeholders’
Other 22% expectations regarding corporate governance increase, courts are becoming
more assertive, and a growing number of claims are upheld. As a result,
Issues with
17% directors in every region and in businesses of all sizes are becoming more
capacity
aware of their responsibilities and the liabilities that come with them.
Sustainability
4% This trend is equally evident in both emerging and developed markets.
requirements
The threat of
4%
class actions In the past five years, 61% of respondents
reported an increase in claims, while
55% noted that judges and regulators
are more likely to uphold claims against
individual directors.

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 D&O insurance: global trends 2025

Interest in D&O rising across Market maturity dictates pricing

the board
Responses from the insurance market to changing market conditions
Against this backdrop, many firms have reported rapidly rising interest in in recent years have varied significantly.
D&O cover, with improved penetration within the SME sector, regardless On a global basis, 62% of respondents noted that prices have
of how developed the insurance market is in their jurisdiction. increased. When reviewing individual country responses, many are still
in the early stages of insurance market development and are considered
This is the case in a number of European jurisdictions, relatively immature.
including Poland. As Jakub Pokrzywniak from WKB Partners In contrast, mature markets – such as Australia, the UK, the
comments: “Interest in D&O insurance in Poland has Netherlands (where many multinational businesses are headquartered)
increased, not only among the largest companies – including and Finland – report price decreases.
state-owned companies – but also in the small and medium-
sized enterprise segment.” HOW MUCH HAS YOUR LOCAL D&O PREMIA CHANGED IN
THE LAST COUPLE OF YEARS, AND HOW MUCH HAS THIS
The Netherlands is seeing a similar trend, says Marijke IMPACTED CLIENTS APPETITE TO BUY?
Lohman from WIJ advocaten: “More and more businesses,
including small and medium-sized enterprises as well as non-
profit organisations, are aware of the importance of directors'
liability insurance. Growing attention to corporate governance
and compliance, along with an increase in legal proceedings
against directors, is contributing to this rising interest.”

“The increase of liability of directors and officers, as a

consequence of the financial crisis, increased regulation and
new legislation, both local and international and also some
high-profile corporate scandals have made Greek managers
understand the need for insurance cover”, adds Konstantinos
Issaias, Partner at Kyriakides Georgopoulos.
Significant increase (more than 10%)
Small increase (up to 10%)
In China, Jan Holthuis, Partner at Buren says: “With the About the same
implementation of the new company law in 2024, non-listed Small DEcrease (up to 10%)
Significant decrease (more than 10%)
companies have also begun to recognise the importance
of D&O insurance, leading to the emergence of specialised
products tailored for them.”

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D&O insurance: global trends 2025

Several factors contribute to the differing pricing dynamics between

How do you expect your local D&O premia
mature and developing markets.
to change in the next year?

1. Caution characterises developing markets

Generally, developing markets present a higher risk environment – they
tend to be less politically and economically stable, leading to a greater
likelihood of litigation and claims against directors and officers.
Additionally, legal and regulatory frameworks in these markets are
often less mature, resulting in uncertainties and higher potential for
increased claims. These factors tend to drive up prices, particularly in
the younger insurance markets, where a lack of historical claims data
complicates accurate pricing.
Furthermore, in some markets, such as Chile, regulations are hampering
the development of a competitive market, despite the rising demand for
suitable cover. Patricio Prieto, Partner at Prieto Abogados comments:
INcrease QUICKLY
increase SLOWLY
“Maybe a key element for lack of development is the ruling by level off
the Comision para el Mercado Financiero (CMF) that coverage DEcrease slowly
decrease quickly
can’t be paid by companies in which board members serve.
The regulator has also ruled that companies can’t reimburse
expenses incurred by the board in relation to reparations
or fines due to negligence or misconduct. In addition, The
Chilean IRS has ruled that payment by companies regarding
such expenses cannot be deducted by companies for income
tax purposes.”

2. Mature markets borderline dysfunctional

Mature markets, which have historically experienced significant pricing
volatility due to fluid claims experiences, operate quite differently from
less developed markets.
Our member firms report that carrier interest in D&O remains strong,
largely due to an unexpectedly light claims period during and after
COVID-19. Many international insurers still have high volumes of capacity
that they are keen to deploy at competitive rates to retain or secure new
business. However, while falling prices are good news for insureds,
industry veterans have issued stark warnings about the need to maintain
underwriting discipline to provide the market with some pricing stability.
In April 2024, Chubb CEO Evan Greenberg referred to underwriting
in some US financial lines as “simply dumb”.1 This followed comments
in September 2023 made by Lloyd's Chief of Markets, Patrick Tiernan,
singling out UK D&O underwriting practices as “moronic” “irrational” and
“shambolic.”2 A significant pricing correction is only expected to occur
with either a reduction in capacity or an increase in demand, anticipated
from a rise in global deal-making following a series of global elections.

3. What does 2025 have in store?

Looking ahead to pricing conditions in 2025, respondents in more
mature markets expect pricing to level off. This perspective applies In April 2024, Chubb CEO Evan Greenberg
to countries such as Australia, the UK, Finland, Germany, and Greece, referred to underwriting in some US
which is a rapidly maturing market. financial lines as “simply dumb”.
This followed comments in September 2023
made by Lloyd's Chief of Markets, Patrick
1. C omments made by Chubb CEO Greenberg in Q1 2024 earnings Tiernan, singling out UK D&O underwriting
call. Reported in Insurance Journal. practices as “moronic” “irrational” and
2. " Lloyd's chief takes aim at 'moronic' D&O underwriting". Insurance “shambolic”.
Post, 20 September 2023.

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 D&O insurance: global trends 2025

Economic pressures are

reshaping the market

Economic pressures are undeniably reshaping the D&O insurance landscape globally.

Mature markets see cases rise Developing insurance markets

also impacted
An increase in insolvencies has led to a surge in claims brought by
insolvency administrators across many regions, particularly in mature
markets, according to our member firms. In New Zealand, business insolvencies are currently rising,
In Austria, for example, stricter case law on manager liability has particularly amongst construction companies, and this is
led to a sharp rise in lawsuits initiated by insolvency administrators. expected to increase claims. Rob Coltman, Partner at Duncan
Similarly, in the Netherlands, the end of government support Cotterill reports: “Recent cases in this area, particularly the
measures has triggered a rise in bankruptcies, resulting in more Supreme Court decision Yan v Mainzeal, have called for the
claims against directors. The Dutch D&O market is experiencing a Government to update the relevant legislation, and a review
disconnect between macroeconomic developments and insurance is scheduled to begin in 2025. In the meantime, we expect to
premia and capacity. see more claims brought against directors relating to their
This trend is not limited to developed markets. actions while the company was failing”.

In China, the economic downturn following the pandemic has

led to a rise in corporate financial fraud, prompting stricter market
supervision and revisions to key legislation. These changes have
expanded the responsibilities and liabilities of directors and officers,
increasing the demand for D&O insurance.
Similarly in Greece, the prolonged financial crisis has influenced
Globally, economic uncertainty driven the claims landscape, with many individuals seeking to recover lost
by geopolitical shocks, rising interest profits through D&O claims. Despite the improvement in the economy,
rates, and inflation is contributing international macroeconomic developments continue to raise
to an increased risk of D&O claims. concerns and lead to claims.
These pressures are reshaping the D&O Globally, economic uncertainty driven by geopolitical shocks, rising
insurance landscape worldwide, interest rates, and inflation is contributing to an increased risk of D&O
with no market left untouched. claims. These pressures are reshaping the D&O insurance landscape
worldwide, with no market left untouched.

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D&O insurance: global trends 2025

‘Responsibility for everything’

increases directors’ESG liability
In the words of Dominik Skrobala, Partner at our Swiss firm, gbf Attorneys-at-law, the
trend towards corporate social responsibility and sustainability has created a culture of
"responsibility for everything" for companies and their management.

The situation is particularly evident in the US, where UnitedHealthcare Market variations in ESG-related
CEO Brian Thompson was tragically shot at the end of 2024 after facing liabilities
personal criticism for the company’s rejection of insurance claims.
Furthermore, the decision of multiple insurers to cancel policies for The risks associated with ESG trends are particularly pronounced in
properties in California in the months prior to the recent wildfires, certain markets where legislation is more mature. Countries such as
due to escalating risks, may result in legal action against D&Os, as Australia, the US, UK, and many EU countries face real risks associated
homeowners seek to recover their costs through other means. with directors' liability claims.
In contrast, in less developed markets like Argentina, while
ESG reporting is risk area the Government is starting to recognise the importance of ESG,
regulatory frameworks and enforcement mechanisms are still in the
The area of ESG reporting is also a significant risk factor. As businesses developmental stages.
respond to increasing expectations from stakeholders – including
regulators, investors, and consumers – the importance of corporate Matias Ponferrada, Partner at Abeledo Gottheil notes: “The
reporting and communication has grown. In some instances, this primary driver of ESG initiatives in Argentina often stems
responsibility is attributed personally to directors. from parent companies’ directives to their subsidiaries,
rather than strong government mandates.”
In France, for example, Robert Byrd, Partner at Byrd &
Associates, notes an increasing trend of “regulators more The situation in Turkey is unique. Given the importance of
often holding the Directors and Officers personally liable for the European Union as an export market, and their “biggest
ESG accountability”. goal” of joining the EU, comments Kerem Karabucak, Partner
at Durukan, “the impact of ESG on Turkey has been very
These factors have become key criteria for insurers when assessing significant. Executives and Directors have had to follow the
a company’s risk and are also used by regulators to more easily European regulations which are frequently modified, even if
prove breaches and establish causality in relation to communication there is no national legislation yet.”
standards and expectations.
D&O policies in Turkey have “boomed” in recent years, as Turkish
In Brazil for example, João Marcelo dos Santos of Santos directors navigate the impact of EU sanctions on Russia, which has
Bevilaqua says: “Brazil hosts numerous large engineering historically been a major export market for Turkey.
projects that can significantly impact the environment. D&O risks are also influenced by the characteristics of different
As a result, a portion of D&O contracts is focused on liability industries. Directors of companies in sectors with high environmental
related to the management of these projects. This issue impacts, such as energy, manufacturing, and chemicals, often face
is typically associated with environmental fines, increased liability due to their responsibility for ensuring compliance
administrative penalties and class actions initiated by the with environmental laws and regulations. In some markets, exclusions
State Prosecutor.” for pollution-related claims have become standard.
What this means in practice is heightened responsibility for
There is also the threat of increased claims on the back companies to ensure that both domestic and international supply
of more comprehensive reporting requirements. Carolin chains comply with ESG standards.
Schilling-Schulz, Partner at Arnecke Sibeth Dabelstein
in Germany, notes that the legislation in Germany goes Writing on the wall
beyond the requirements of the European directives since
the implementation of the Supply Chain Due Diligence Act These trends indicate that directors and their companies in every
in 2023. With this in mind, she adds, “it is therefore feared market need to pay close attention to ESG compliance. It is prudent for
that D&O insurers will react to these requirements with an boards to proactively address these issues to mitigate risks and meet
insurance exclusion”. the expectations of all stakeholders in an evolving regulatory landscape.

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 D&O insurance: global trends 2025

Litigation is risinG

Our survey shows that directors and officers are experiencing a growing volume and severity of claims
in most jurisdictions surveyed, with courts and regulators more inclined to support these claims.

This rise can be attributed, in part, to a growing body of new legislation, Four triggers dominate
noted by 16 countries in our survey. Many respondents also reference
a rising culture of litigation, along with an increase in the number of In our analysis, four primary litigation triggers emerged from survey
bad faith or meritless claims. responses across 24 countries.
Several countries highlighted significant cases that have made
headlines, resulting in substantial pay outs in places like the UK, Brazil, Breaches of fiduciary duty
Finland, and Norway. Over half (58%) of the countries reported breaches of traditional fiduciary
In the US, the uncertainty following the re-election of President duties as a leading driver of litigation. The scope of fiduciary duties is
Trump has left many D&Os apprehensive about an uptick in securities clearly expanding, not only due to increasing regulations but also because
litigation and enforcement actions under his administration. applicants aim to bring D&Os into cases that would traditionally be
Over the past five years, 59% of respondents reported that claims corporate litigation, thereby accessing another ‘pot’ of insurance funds.
had been increasing, while 57% noted that judges and regulators were This trend raises concerns both for the insurance industry and for boards.
more likely to uphold claims against individual directors.
While traditional areas of litigation, such as breaches of fiduciary Janette McLennan, Partner at Sparke Helmore in Australia,
duty and economic triggers, continue to dominate, new regulatory a highly mature market, comments: “Australia’s regulatory
areas are emerging. These include ESG, data privacy, cyber issues, and environment has become increasingly complex, which has
employment law. Additionally, there is a growing focus on protecting an inevitable impact on the risk of liability for both companies
corporate reputation in crisis situations, commonly referred to as and their D&Os. Regulators’ powers continue to expand and
disaster management. the penalties that can be awarded against individual D&Os
have increased significantly in the years following the
Financial Services Royal Commission in 2019. Applicants
may add D&Os to proceedings for direct contraventions or as
alleged accessories to acts or omissions of the company as
a way of seeking to access insurance funds in any settlement
or judgment. As well as facing liability for civil and criminal
penalties personally, D&Os can be sued for the loss or
damage claimed against the company itself. D&O insurers
can therefore find insured D&Os facing exposure to loss or
damage which would typically sit with the company and can
face large claims for defence costs.”

In Poland, a market that is in a “growth phase”, Jakub

Pokrzywniak of WKB Partners cites fiduciary duty as a key
consideration for those purchasing D&O coverage, alongside
“regulatory violations, employment practice issues, and
potential insolvency claims.”

Economic stress
D&O coverage comes into sharp focus during times of economic
hardship, as we can expect an increase in insolvencies and transaction
failures. Twelve countries in our analysis discuss these issues as key
litigation triggers. Countries across the maturity spectrum express
concerns about various matters, including shareholder derivative
actions, insider trading, declarations of interest in transactions,

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D&O insurance: global trends 2025

and the approval of transactions. Stock valuations and financial Disaster management
misstatements related to deals are frequently highlighted. In a world of increasingly frequent misinformation and rising
Even as the economic outlook improves, we can expect the stakeholder expectation, it is surprising that only two countries –
economy to continue to influence D&O actions. Italy and Mexico – identify crisis management as a significant factor
Management consultancy Bain & Company predicted that driving litigation or as an addition to their cover.
the overall global M&A deal value would reach $3.5tr by the end of
2024.3 However, they noted that: “challenges and litigation extended Giorgio Grasso, Partner at BTG Legal in Italy, comments:
deal close timelines and impacted close rates in 2024. Nearly half “In recent years, reforms related to corporate crisis
(47%) of dealmakers said regulatory concerns impacted the types management have extended directors' obligations, requiring
of deals their company considered this year. In response, many greater diligence in the prevention and management of crisis
are revising deal strategies and spending more time screening situations.”
up front.”
Aldo Ocampo, Partner at Ocampo 1890 in Mexico, says:
New areas of regulatory focus “Insurance companies are adapting to new requirements,
ESG is a dominant topic in boardroom discussions and is introducing more flexible or specific clauses to cover risks
fundamentally changing the information companies must report and arising from crisis management.”
how they do so. Related areas of regulation, such as employment law,
environmental law, and data privacy, have gained heightened attention
due to the discussions surrounding ESG. 3. L
 ooking Back at M&A in 2024: Dealmakers Adapt as the Market
Among the 24 member firms participating in this report, 11 firms Idles | Bain & Company.
indicated that these new, non-traditional areas of responsibility often
serve as triggers for litigation.

Sakate Khaitan, Partner at Khaitan Legal in India, comments

that alongside traditional fiduciary breaches: “We have also
seen a rise in employment practices claims, such as wrongful
termination or workplace harassment. Additionally, cyber
breaches and ESG-related issues, such as environmental
violations, are becoming critical litigation drivers.”

Insurance coverage disputes

29% of members reference insurance coverage disputes, often
concerning the scope of coverage, timeframe of coverage,
settlement size, and subrogation. In a complex and fast-paced claims
environment, this is not surprising; however, it raises questions
about the clarity of policy wordings and how effectively coverage is
communicated to buyers. This issue is prevalent across all markets,
regardless of their level of development.

Management consultancy Bain & Company

predicted that the overall global M&A
deal value would reach $3.5tr by the
end of 2024. However, they noted that:
“challenges and litigation extended deal
close timelines and impacted close rates
in 2024. Nearly half (47%) of dealmakers
said regulatory concerns impacted the
types of deals their company considered
this year. In response, many are revising
deal strategies and spending more time
screening up front.”

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 D&O insurance: global trends 2025

What do buyers want and how

are wordings changing?

Insurers are expanding their policy wordings to address new areas of risk, and there seems to be a
strong correlation between shifting market demand and buyers’ experiences with new or extended
offerings at renewal.

Expectations around ‘standard’ Ross Baker, Partner at Beale & Co in the UK, concurs that
cover are on the rise buyers are “increasingly looking to D&O policies for protection
against ESG, cyber/AI, economic crime and geopolitical/
When buying D&O insurance, clients are prioritising coverage for legal sanctions issues.”
exposures arising from regulatory scrutiny, shareholder activism, and
governance lapses. Cyber security is a particular concern in France, notes Robert
Coverage for defence costs, settlements, and damages stemming Byrd, Partner at Byrd & Associates, citing an increase in
from allegations of mismanagement or fiduciary breaches is claims “driven by increased data breaches, hacking and
increasingly regarded as crucial, especially as businesses and cyber-attacks.”
shareholders become more litigious and regulators more susceptible
to influence. Geopolitical risks looming large
Our member firms report that clients across jurisdictions are
also seeking better cover for insolvencies and issues arising during The increase in geopolitical risks, in particularly due to the ongoing
mergers, acquisitions, and disposals. Key considerations for these war in Ukraine and tensions in the Middle East, has led buyers to pay
clients include coverage limits, premium costs, and maintaining closer attention to the evolving challenges of corporate governance
retroactive coverage, particularly during management transitions. related to sanctions, Ultimate Beneficial Owners, and associated fines.
In this context, it is not surprising that clients are also placing greater
Joachim Skjelsbæk, Partner at RIISA in Norway comments: emphasis on territorial coverage, which is crucial for multinational
“When changing from a cover to another, it’s important to be companies that have expatriate officers and are facing heightened
sure that a claim does not fall between the coverages.” Also regulatory scrutiny.
referenced is that, in this market at least, policies don’t cover
what is euphemistically referred to as ‘old fun’ – damages Volodymyr Sayenko, Partner at Sayenko Kharenko in
that were incurred before the inception of the policy, which Ukraine, comments: “Policy wordings increasingly reflect
are judged to fall outside of its scope. the risks posed by the ongoing war, with exclusions for war-
related claims and occupied territories. Bribery, corruption,
Demand for more tailored policies and money laundering exclusions are now standard.
and add-ons Sanctions clauses addressing international compliance are
ubiquitous, driven by EU, UK, US, and Canadian regulations.
There is growing demand for tailored policies and add-ons. Many of Cyber risks and ESG concerns are emerging focal points
our member firms report an increasing need for customised policies in policy adjustments. These trends align with geopolitical
that address what could be classified as non-traditional D&O risks. instability, regulatory shifts, and the global movement toward
These include cyber liabilities, ESG-related exposures, and concerns accountability and sustainable corporate practices.”
related to employee mental health and wellbeing, such as protection
against harassment and bullying allegations. As Konstantinos Issaias, Partner at KG Law in Greece
commented: “D&O buyers get familiar with the concept that
Clemens Völkl, Partner at Völkl Rechtanswalte in Austria, troubles may come without being their fault and this adds to
comments: “Clients are also often looking for combinations their day-to-day concerns.”
of fully-fledged products from the various financial lines.
At present, legal protection and cybercrime supplementary
cover are particularly in demand.”

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D&O insurance: global trends 2025

Market becoming more Spain and Switzerland are both highly approving of new wordings
international now available to directors and officers.

One key trend noted by our member firms is the increasing Fernando Blanco Gamella, Partner at Blanco y Abogados in
globalisation of the D&O market. The presence of global broking Spain notes how “the advancement of regulations, such as
houses and London Market underwriters is becoming omnipresent. those directly related to sustainability and climate change,
While this trend may enhance the range of coverage options has led to a much more detailed focus on coverage for
available, the result is not universally beneficial. certain regulatory risks.” The firm is also pleased to note the
inclusion of “more specific clauses related to cybersecurity”
Clemens Völkl of Völkl Rechtanswalte in Austria warns that adding that “the policy wording is closely linked to the
brokers’ wordings “harbour risks for policyholders, because progress of society and, therefore, to the new and constant
ambiguities in these conditions are not attributable to the challenges we face.”
insurer, but to the policyholder. Secondly, special terms and
conditions have been used more and more in recent years, Switzerland has also welcomed new cyber extensions and
particularly in the case of contract renewals or new cover. extended cover for ESG reporting and issues related to
This can result in particularly complex terms and conditions “sustainability-related” liability.
that are difficult to interpret.” Australia likewise notes the
increase in the number of London-led placements. Not all markets satisfied

Sandra Lodewijckx, Partner at Lydian notes that in Belgium Not every market is satisfied with the current trends in D&O wordings,
this is having a positive effect by making take up by the however.
SME sector much easier: “for middle-market clients it is now
generally possible to take out insurance through an entirely In the UK, Ross Baker, Partner at Beale & Co, notes: “Wordings
digital acceptance process, which implies more standardised from traditional D&O insurers have tightened considerably since
policy wordings for certain risks.” the Covid period (2020-22) as insurers look to keep a tight rein
on their potential exposures.” Although an influx in MGAs has
This is similar, notes Michael Molitor, Partner at Molitor Legal, helped with the introduction of more bespoke policies, Baker
to the situation in Luxembourg. While the domestic market points out how insurers are cautious to exclude specific risks,
is not as large as its neighbours, the highly sophisticated such as cyber, where specific separate cover is available, a trend
financial sector in the country requires tailored solutions. As which is likely to increase complexity for insureds.
such, he concludes: “Local brokers collaborate with global On the plus side however, the prevalence of broker-driven
insurers to meet these needs, ensuring competitive and wordings is welcomed. “Many brokers have sophisticated
adaptable coverage in this expanding market.” claims consultant teams that protect their insured clients’
interests on issues such as fair presentation and scope of
International wordings generally exclusions and extensions.”
well received

Other markets, including Chile, Finland, France, Greece and India note
the rise of international wordings with approval. Coverage for defence costs, settlements,
and damages stemming from allegations
Justus Könkkölä, Partner at Socrates in Finland sums up the of mismanagement or fiduciary breaches
mood: “D&Os in larger companies are better protected by is increasingly regarded as crucial,
policies designed for global operating companies that offer especially as businesses and shareholders
broader coverage.” become more litigious and regulators
more susceptible to influence.

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 D&O insurance: global trends 2025

New year, new rules

What does 2025 have in store? A review of member firms’ responses suggests that in 2025, there
will be a significant number of new rules and increased scrutiny, heightening the pressure on
directors and officers.

New legislation in Australia, Case law mounting up in Italy

Belgium, Greece and India and the UK

Australia Italy
In Australia, the Australian Prudential Regulation Authority (APRA) is Recent case law trends in D&O insurance in Italy point to an inevitable
introducing a new Financial Accountability Regime (FAR). Seen as one of expansion of directors' liabilities, resulting in the need to adapt
the biggest regulatory changes in a generation, the FAR will impose a range insurance policies to provide adequate protection.
of obligations on directors and senior executives, aimed at enhancing the BTG Legal anticipates an increase in the frequency and number
risk and governance cultures within Australia’s financial institutions. of claims arising from actions by shareholders and the company, by
creditors and liquidators (or receivers) against directors and auditors,
Janette McLennan, Partner at Sparke Helmore, comments: as well as by the state and workers.
“From a D&O insurance perspective, individuals will be able Privacy, occupational safety, ESG and cybersecurity cases are also
to insure against defence costs they incur if prosecuted but expected to loom large.
they can also now face career-ending disqualification orders
preventing them from acting as a director or executive in the UK
future.” The UK market is also likely to be influenced by high profile recent
cases.
Belgium
In Belgium, new legislation in the form of Book 6 of the Civil Code, For example, following the recent Post Office scandal, Ross
which governs extracontractual responsibilities, is expected to Baker, Partner at Beale & Co suggests there will likely be an:
increase both the volume and value of claims. It is anticipated that “increased impetus to look into imbalance of power between
this will lead to higher defence costs and may require a shift in in large corporations and individuals, and the role of lawyers
procedural strategies, potentially making them more complex. and other advisors within corporations.”

Greece Beale & Co also highlights the potential for significant changes
In Greece, reforms to the judicial system are under way, aimed at in AI regulation in the wake of the EU AI Act, along with considerable
streamlining procedures and timelines in both civil and criminal increases in fines and penalties for professional firms and corporations
proceedings. Additionally, new obligations introduced as part to discourage unethical behaviour, particularly dishonesty.
of the European regulatory framework will sharpen the focus on
cyber security and increase the responsibilities for directors and
officers. Recent legislation has also made natural disaster insurance
mandatory for businesses with a turnover exceeding EUR 500,000,
further extending the scope of D&O responsibilities.

India
India's legal and regulatory landscape is evolving to emphasise
corporate transparency, accountability, and ESG compliance. In the
near future, the digitisation of compliance processes, enhanced
cybersecurity mandates, and regulations specifically focused on
ESG-specific regulations will all impact businesses in India.

In light of the evolution of regulatory landscape, Sakate

Khaitan, Partner at Khaitan Legal believes “directors are likely
to face greater personal accountability.”

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D&O insurance: global trends 2025

TRENDS TO Watch
Looking ahead, there is a clear divide in the trends that firms identify as “ones to watch”,
between the developed and developing markets.

Cyber Regulation

Cyber remains a concern in many markets, and this focus is expected GILC’s 2021 report on the D&O market noted that the UK and North
to continue. America tend to set global regulatory trends. Contributions this year
In Australia, AI has emerged as an area of D&O risk. Janette indicated that this trend is expected to continue. Many markets, both
McLennan, Partner at Sparke Helmore, noted: “AI use by corporates, developed and developing, are experiencing similar movements.
and how that use is managed and publicly disclosed.” Similarly, Ross
Baker, Partner at Beale & Co in the UK, anticipates that issues will arise In Finland, the market anticipates the adoption of trends
regarding AI’s ability to ‘hallucinate’ facts that are not based on reality. already present in the US and EU. Justus Könkkölä of
Given the rapid evolution in the wider cybersecurity landscape, Socrates Attorneys notes that stricter reporting requirements
particularly concerning cybercrime, many firms mention this area as on ESG brought in by the EU are likely to reshape corporate
one to watch in coming years. It will be important for D&Os to consider governance, “exposing directors to potential claims for non-
the risks of being held liable for failing to mitigate and protect against compliance or greenwashing.”
cyber threats.
This trend is mirrored in Spain and Mexico, both of which have a
history of following the US market’s lead. For example, a decade ago,
Mexico imported the concept of punitive damages from the US. More
recently it modified the Case Precedent System to align it with the
system in the US and in 2024, changes were made to the Constitution
to bring about the voting-in of judges and justices.
In jurisdictions with sophisticated regulatory environments, there
is an emerging trend of exposure to class actions, either through US-
listed companies or through individual countries’ legislation. In the
Netherlands, WIJ advocaten notes that Dutch companies with a US
listing are becoming more concerned about the risk of class actions.
This trend is echoed in Switzerland, Australia, and Italy especially
concerning cases around financial instruments. As Norway began
allowing class actions in 2008, such actions have become more
common there as well.
In jurisdictions with less developed D&O insurance markets, the
trends are more general. As these markets evolve and become more
sophisticated, many expect regulation to follow. This is particularly true
in Brazil, Greece, and India, where “the market is evolving to meet the
demands of an interconnected corporate landscape”, driving change
particularly for companies straddling multiple jurisdictions. In Mexico,
there is a recognition that it is “foreseeable” for the country to follow the
US trends regarding liability.

14
 D&O insurance: global trends 2025

conclusion
The D&O market has evolved significantly since GILC last surveyed its members on this topic in 2021. At that
time, the COVID-19 pandemic’s shadow loomed large over the sector, impacting pricing and exposures for
D&Os. ESG reporting requirements were less stringent, and while cyber exposures and regulatory pressure
were factors to consider, they were among many other considerations for D&O insurers.
Since then, regulation has emerged as a primary concern for our surveyed members, with ESG topics
featuring more prominently this year. The impact of cybersecurity on D&O insurance, which was noted
by many in 2021, has continued to evolve, presenting new challenges for our members and the insurers
they advise. As we progress through 2025 and beyond, we can expect that the themes of cyber risk,
regulation, and ESG will remain at the forefront of insurers’ minds. We hope that the findings detailed
in this report provide insights. Please engage with your local GILC firm if you wish to discuss any of
the issues raised in this report.

METHODOLOGY
In November and December 2024, we surveyed practitioners in 24 GILC member firms for their
views on the D&O market in their country. This report is based on their responses, combining a
mix of quantitative data with qualitative market observations, supplemented by desk research.
Not all respondents answered all questions, so responses do not always sum to 24.

BELGIUM Switzerland
Norway

UK
Germany
AUSTRIA

FrancE FINLAND

POLAND

UKRAINE
LUXEMBOURG
China

India

TURKEY
MEXICO Spain
GREECE

ITALY
Brazil

ARGENTINA Netherlands Australia

CHILE NewZealand

15
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