A widening range of risks in the D&O sector is driving up demand according to a survey by Global Insurance Law Connect. Key factors driving this growth include regulation and sanctions, increasing attention on environmental, social and governance, and the challenges from a rapidly evolving cyber and AI space.

The firm's second report on trends in the global D&O insurance sector gathered the views of GILC’s member firms and found that legislation and regulation are a primary concern in 2025 for 73% of respondents. Over half of respondents (55%) expressed concerns around ESG factors and macro-economic conditions.

Gillian Davidson, GILC’s chair, said: “Our new D&O report marks a global increase in demand for D&O cover. As the D&O basket of risk widens to include ESG and macro-economic impacts, the demand for D&O cover has also grown globally, with increased interest from smaller firms, who would not previously have considered D&O a core risk for their business.”

“Most noticeable among the growing list of issues is the rise of ESG, which many member firms place among the most pressing concerns for the first time. At the same time, while regulatory concerns were already a major issue in 2021, we are now seeing that for many respondents this regulatory burden has increased to the point where they want to purchase more comprehensive cover.

“These trends typify an increasingly risky environment for executives, with rising litigation and a pattern of personal responsibility for D&Os driving up demand for broad cover across the board.”