Global Insurance Law Connect (GILC) has launched its second report on trends in the global Directors and Officers’ insurance sector. In it, respondents from 24 of GILC’s member firms provide insights on the range of issues faced by directors and officers, and discuss the increase in demand for D&O cover.
Key themes driving this growth include a focus on the impacts of regulation and sanctions, increasing attention on environmental, social and governance (ESG), and the ongoing challenges from a rapidly evolving cyber and artificial intelligence (AI) space.
A changing global picture
Since the first edition of this report in 2021, member firms report a widening basket of risks across the D&O landscape. In 2025:
- Legislation and regulation are a primary concern for 73% of respondents
- Over half the respondents (55%) have expressed concerns around ESG factors and macro-economic conditions.
- Eleven firms cite cyber risk as having a strong influence on D&O market response.
In 2021, prices were rising across the board, with the dual pressures of growing cyber exposure and escalating regulatory pressure top of mind for many respondents. However, the range of concerns has broadened over the last four years with ESG factors and macro-economic conditions joining cyber and regulatory as major issues for directors and officers.
Interest in D&O rising across the board
Many firms reported increased interest in D&O cover, with improved penetration within the SME sector, regardless of how developed the insurance market is in their jurisdiction. European firms in particular describe a widening awareness and desire for D&O cover among smaller companies and those in non-profit sectors.
Gillian Davidson, GILC’s Chair, commented: “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.”
GILC D&O Report
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