Authored by Sara Weathers

Insurance Journal recently shared a report from Allianz Global Corporate & Specialty (AGCS) that shows Directors & Officers insurance buyers are seeing more competitive offers from new insurers entering the market. The report also showed that the field has a high risk for more frequent and serious claims in 2023.

The report listed five examples of risk factors that could cause your firm to need D & O insurance.

1. Economic and recession risks – Inflation, supply chain issues, and the energy crisis are all issues that D & O insurers should monitor closely, according to AGCS.
2. Cyber security – Cyber security risks are at an all-time high, and the number of data breaches is constantly increasing. Cybersecurity risk is now a huge responsibility for company boards to manage.
3. ESG disclosures and exposures – Compliance requirements and adhering to regulatory and legal constraints
4. S. class action securities litigation – While the frequency of new U.S. security class action filings slowed during the last half of 2022, it is still a legal hotspot for them.
5. Antitrust and competition risks – The U.S. Department of Justice enforcing antitrust laws could lead to more D & O claims.

For more information on these risk factors, check out Insurance Journal’s article. Have questions about D & O insurance? AdvoCap Insurance is here to help.

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