Legislation and regulation are the factors that currently have the most significant impact on directors’ and officers’ insurance around the world, according to member firms surveyed for the latest report from Global Insurance Law Connect. Other key trends include the growing influence of environmental, social and governance factors, and the impact of macro-economic conditions on the insurance landscape. Our members report that globally this increased focus on corporate governance, and sustainability has increased the focus on directors’ liabilities.

Economic pressures are also reshaping the D&O market globally. The report indicates a marked increase in claims, driven by economic uncertainties such as geopolitical shocks, rising interest rates and inflation. Mature markets are seeing a rise in insolvency-related claims, while developing markets face heightened litigation risks associated with less stable political and economic environments. Interestingly, despite these challenges, there is a growing interest in D&O cover, particularly among SMEs.

The 2025 report follows a previous edition published in 2021, in which ESG was an emerging concern for GILC member firms, regulation was becoming an increased burden, and cyber exposures were an ever-present consideration for directors and officers. The risk environment was still recovering from the pandemic and those surveyed indicated that prices were rising across the board. In the four intervening years, there have been premium rises in 14 of 22 jurisdictions surveyed, and 16 in 22 firms are expecting this trend to continue in their market over the next year.

To explain this continued rise, they cite a number of developing risks. Respondents in markets including Australia, Belgium, Greece and India noted that the degree of legal and regulatory scrutiny on directors and officers shows no sign of slowing, while those in both Italy and the UK expect an increased D&O caseload. Cyber is also cited by many as an area that will present challenges for directors and officers in the coming years, with the relative unknown and uncodified world of AI a potential concern.

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