Insurance is increasingly top of mind for directors

Our fifth report on Director and Officer’s insurance (D&O) trends, ‘Preparing for the tailwinds’, provides an overview of market developments and regulatory updates, including looking at new and emerging risks and legal perspectives.

Produced by the Institute of Directors (IoD) with Marsh and Dentons, the report suggests opportunities to better-manage D&O insurance are on the horizon and boards should prepare to review – and perhaps renew - the terms of their policies.

Directors are facing increasing complexity, risk and exposure to legal claims. The Supreme Court’s decision relating to Mainzeal, a focus on due diligence obligations following the Whakaari/White Island case, and emerging climate change risks have all put the availability of D&O insurance under pressure.

While demonstrating best-practice governance remains the best defence against a claim, it is also an important aspect of indicating to your insurers how risk is being considered, managed, and mitigated.

In both contexts, the report urges boards to keep detailed and up-to-date minutes that establish what decisions were made and outline the discissions that were undertaken.

D&O insurance protects directors personally, as opposed to providing cover to the business or organisation. The conversation about the adequacy of present cover, or the scope needed in the future, needs to be led by the board.

D&O insurance – preparing for the tailwinds provides analysis of legal risks, emerging risks (including AI), insurance industry updates and advice for directors in the not-for-profit sector.

Read the 2024 report D&O insurance – preparing for the tailwinds

Other publications in this series are available online at:

D&O insurance – hitting the reset button (2023)
D&O insurance – a rising sea of change (2022)
D&O insurance in a hard market (2020)
D&O insurance – trends and issues in turbulent times (2019)

The 2024 D&O report is proudly supported by Dentons and Marsh.