Key risk trends for directors and officers in 2023: potential recession, cyber and ESG concerns
- Written by The Bulletin
- Allianz Global Corporate & Specialty (AGCS) highlights macroeconomic risks such as inflation and insolvency and their impact on Directors and Officers (D&O) insurance
- Cyber and ESG-related risks are driving an increasing number of lawsuits and litigation against companies and their boards
- US remains a securities class action hotspot, despite downward trend in new filings
- D&O insurance market seeing a favorable shift for buyers, but inflation and current risk environment means the potential for more frequent and severe losses remains
MUNICH, GERMANY - Media OutReach - 13 December 2022 - Which are the main factors driving the possibility that a company and its board of directors may be sued by investors or other stakeholder groups in 2023? A poor financial performance or even insolvency amid economic uncertainty and the prospect of a global recession, a lack of robust cyber security and governance processes, or an inadequate or non-compliant response to environmental, social and governance (ESG) issues are among the key risk trends in the Directors and Officers (D&O) insurance space, according to Allianz Global Corporate & Specialty (AGCS).
