GLOBALFINEX

Directors'andOfficers'

LiabilitySurvey

2023

TABLEOFCONTENTS(CLICKONTITLETONAVIGATETOPAGE)

Introduction02

AbouttheSurvey

03

ResponsebyCountry

04

BusinessOperationRisks

05

Historicalcomparison

06

Byrevenue

07

Byregion

08

Whicheconcomicrisksareimportant?

09

RisksforDirectorsandOfficers

10

Historicalcomparison

11

Top7risksforDirectorsandOfficers-byregion

12

Top7risksforDirectorsandOfficers-byrevenue

13

Top7risksforDirectorsandOfficers-byindustry

14

Directors'andOfficers'insurancecoverage

15

Top7D&Oinsurancecoverageareas–byregion

16

Indemnification

17

Insurancepolicy–limits,retentionsandpremiums

18

AlternativeRiskTransferoptions

19-20

Appendix-DetailedResults

21

DirectorsandOfficersriskrankingoverview

22

Historicalcomparison

23

Byregion

24

Byrevenue

25

Byindustry

26

Welcometothe2023GlobalDirectors’andOfficers'Liability

SurveyReportfromWTWincollaborationwithClyde&CoLLP.

Wehavecontinuedtheinternationalscopeofourreport,with

responsesfromdirectorsandriskmanagersin40countries

aroundtheworld.Aswithlastyear,thisreportcontains

sectionsonrisksforbusinesses,risksfordirectors,andvarious

directors'andofficers'liability(D&O)insurancecoverage

points.

Wewillbetakinganewapproachwithreportingonthesurveyresultsthisyear.

Ourinitialreportwillpresentthesurveyresultsandthenwewillbereleasinga

seriesofseparatearticlesonvarioustopicsinspiredbythesurveyresultsand

lookingatsomeofthesurveyresultsinmoredetail.Pleasecheckour

website

forthelatestarticles.

Weaddedafewnewtopicstothesurveythisyearandremovedsomethat

wethoughtwerenolongersorelevant.Cybercontinuestodominatethe

responses,withcybercrimeandhavingsufficientcyberexpertiseappearing

astoprisksinseveralregionsandacrossseveralindustries.Theimportance

ofclimatechangeasadirectorriskcontinuestofluctuate,goingdownin

importanceinsomeregionsandindustriesandsignificantlyupinothers.Itis

nowthenumberoneriskfordirectorsintheEnergyandUtilitiessector.Wealso

addedaquestionabouttheimportanceofhavingESGcoverageunderaD&O

policytooursurveyforthefirsttime,totryandreflecttheincreasingpublic

discussionaroundthistopic.However,onlyinAustralasiadidrespondents

considerthiswasinthetop7ofcoverageissues.

Wehopethisgivesyouaninterestingtasteroftheresultsfromthesurvey

andwhetsyourappetitetofindoutmore.Ifyouhaveanyquestionsabout

theresultsorthetopicsweaskedabout,orifyouhaveanysuggestionsfor

questionswecouldcovernextyear,pleasedocontactanyofthepeopleshown

inthecontactpagesattheendofthisreport.

AngusDuncan

GlobalD&OCoverageSpecialist(exNA)

+442031248386

angus.duncan@

JamesCooper

Partner,London

+442078766388

Contributors27

er@

Directors'andOfficers'insurance

2

Appendix-DetailedResults

BusinessOperationRisks

ResponsesbyCountry

Introduction

RisksforDirectorsandOfficers

AbouttheSurvey

coverage

Introduction

ResponsesbyCountry

AbouttheSurvey

Companytype

Revenue(USD)

AbouttheSurvey

Globalresponses

Industrydistribution

8%

26%

11%

14%

17%

17%

7%

Forprofit,privateForprofit,listedFamily-owned

Non-profitGovernment-owned

Other

42%

30%

11%

8%

6%

3%

$5billionormore

$1billiontolessthan$5billion

$50milliontolessthan$1billion

Lessthan$50million-profit

26%

26%

31%

18%

IndustrialEnergy&Utilities

ServicesHealthcare

Transportation&RetailOther

FinanceandInsurance

Note:RevenuesinEUR,GBP,JPYandCNYwereconvertedtoUSDwithratesasofNovember8,2022.Percentagesmaynotaddupto100%duetorounding.'Don’tknow'responseshavebeenexcluded.

Source:2022/2023Directors'andOfficers'LiabilityInsuranceSurvey

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

3

Introduction

ResponsesbyCountry

AbouttheSurvey

Responsebycountry

(Hoveroverthemaptoseepercentagebreakdown)

Europe

37%

GreatBritain

24%

NorthAmerica

9%

Asia

12%

Australasia

4%

LatinAmerica

13%

Africa

1%

Note:Percentagesmaynotaddupto100%duetorounding

Source:2022/2023Directors'andOfficers'LiabilityInsuranceSurvey

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

4

Responses

Introduction

AbouttheSurvey

Businessoperation

risks

byCountry

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-DetailedResults

5

71%

67%

Economicrisks

67%

Cyberrisks

Regulatory/legislativechange

44%

38%

Geopoliticalrisks

COVID-19andlockdown

measures

76%

59%

52%

52%

Technologicaladvances(artificialintelligenceandmachinelearning)

50%

39%

Climatechange

30%

Diversity,equityandinclusion

19%

34%

Brexit

Introduction

ResponsesbyCountry

AbouttheSurvey

Businessoperationrisks

Historicalcomparison

Howsignificantdoyouthinkthefollowingissuesareforyourorganisation’sbusinessoperations?

Whilstitisnotsurprisingthateconomicrisksremaintheno.1risk,thefactthatsignificantlyfewerdirectorsseethemassignificantis.

Intermsofemergingrisks,regulatory/legislativechangecomesstraightinatnumber3foritsfirstyear,whilstgeopoliticalriskshaveincreasedinimportance(upto4thplacefrom6thlastyear)althoughperhapslessthanmighthave

beenexpectedgiventhe

Ukraineconflictandother

internationaltensions.

COVID-19andBrexitrisks,

whilestillinthetop5

continuetodecreasein

importance.

Despitesignificantpublicandregulatoryattentionclimatechangehasfalleninbothpositionandpercentage.AnotherhighprofileriskESG,Diversity,EquityandInclusion(DE&I)isstillnothighlyranked.

2022

2021

2023

63%

62%

61%

46%

42%

42%

39%

31%

11%

Sample:Allsurveyparticipants.Notethatthe2021surveyhadamorelimitedgeographicscope.

(%of‘very’or‘extremelysignificant’)

Source:2021-2023Directors'andOfficers'LiabilityInsuranceSurvey

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

6

70%

43%

89%

69%

35%

Economicrisks

64%

43%

78%

65%

65%

Cyberrisks

34%

85%

58%

69%

61%

Regulatory/legislativechange

38%

47%

66%

57%

Geopoliticalrisks

12%

COVID-19andlockdown

measures

37%

42%

60%

51%

19%

Technologicaladvances(artificialintelligenceandmachinelearning)

41%

40%

58%

42%

31%

42%

40%

38%

44%

35%

Climatechange

28%

30%

44%

23%

30%

Diversity,equityandinclusion

Introduction

ResponsesbyCountry

AbouttheSurvey

Businessoperationrisks

Byregion

Howsignificantdoyouthinkthefollowingissuesareforyourorganisation’sbusinessoperations?

Turningtoregionaldifferences,climatechangeriskisdownacrosstheboardexceptintheUSwhereitwasflat,withthemostsignificantdropsbeinginEuropeand

Asia.

Economicrisks

arenowseenas

lesssignificantbyGBdirectors(alargefall).ThereisasimilarpositioninNorthAmericaandLatAmbutEuropeandirectorshavetakenadifferentview.

Geopoliticalriskis

ahighrisk(4)for

Europe,Asiaand

LatAmdirectors

whilstdirectorsin

NorthAmericaare

lessconcerned.

Asia

Australasia

GB

Europe

LatAm

NorthAmerica

55%

75%

60%

28%

30%

30%

22%

30%

Brexit

6%

32%

4%

2%

1%

0%

Sample:Allsurveyparticipants

Source:2022/2023Directors'andOfficers'LiabilityInsuranceSurvey

(%of‘very’or‘extremelysignificant’)

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

7

Introduction

ResponsesbyCountry

AbouttheSurvey

Lessthan$50million

$50milliontolessthan$1billion

$1billiontolessthan$5billion

$5billionormore

50%

52%

71%

70%

Economicrisks

60%

57%

69%

60%

Cyberrisks

55%

48%

62%

68%

Regulatory/legislativechange

37%

37%

60%

45%

Geopoliticalrisks

COVID-19andlockdown

measures

47%

46%

39%

33%

34%

35%

49%

42%

Technologicaladvances(artificialintelligenceandmachinelearning)

38.64

56%

34%

35%

34%

Climatechange

26%

31%

42%

21%

Diversity,equityandinclusion

11%

16%

14%

Brexit

Businessoperationrisks

Byrevenue

Howsignificantdoyouthinkthefollowingissuesareforyourorganisation’sbusinessoperations?

Therearemarked

differences

betweenhow

directorsand

riskmanagersatsmallcompaniesareratingriskcomparedtothoseatlargeenterprises.Regulatory/legislativechangeisconsideredmoreofariskatsmallcompaniesthancyber.

Othernotablerisks,whicharemorehighlyratedatthelargestcompanies,includeclimatechangeandgeopoliticalrisks.

7%

Sample:Allsurveyparticipants

Source:2022-2023Directors'andOfficers'LiabilityInsuranceSurvey

(%of‘very’or‘extremelysignificant’)

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

8

Introduction

ResponsesbyCountry

AbouttheSurvey

69%

Inflation

67%

Recession

55%

Jobmarket(recruitmentandretention)

Whicheconomicrisksareimportant?

Howsignificantdoyouthinkthefollowingeconomicrisksareforyourorganisation’sbusinessoperations?

Thisyearwesoughtmoredetailonwhicheconomicrisksrespondentsarefocussed

on.Thisshowedanequalitybetweeninflationandrecession,withlessfocusonthejobmarket.Havingsaidthat,thefiguresshowthatmorethan50%ofdirectorsfocussingoneconomicrisksconsideredtheriskrelatingtothejobmarketisatleastsignificant.

Sample:Onlythosewhobelieveeconomicrisksareatleastsignificant

Source:2022/2023Directors'andOfficers'LiabilityInsuranceSurvey

(%of‘very’or‘extremelysignificant’)

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

9

Responses

Introduction

AbouttheSurvey

RisksforDirectors

andOfficers

byCountry

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-DetailedResults

10

ranking

ranking

hasdecreasedforD&O’s

Risk

Risk

ranking

Risk

Introduction

ResponsesbyCountry

AbouttheSurvey

#1

#2

#3

#4

#5

#6

#7

2018

Riskofdataloss/

databreach

Cyberattack

Regulatoryandother

investigations

Healthandsafety

legislation

Regulatoryrisk(includingthreatoffinesand

penalties)

Classactionlawsuitsagainstthecompanyanditsdirectors

Employmentpractices

claims

2019

Dataloss

Cyberattack

Regulatoryrisk(includingthreatoffinesand

penalties)

Litigationrisk

Focusofasocial

mediacampaign

Yourorganisationbeing

avictimofacrime

Riskofahealthand

safety/environmental

prosecutionssafety

legislation

hasincreasedforD&O’s

2021

Cyberattack

Dataloss

Regulatoryrisk(includingthreatoffinesand

penalties)

Riskofahealthand

safety/environmental

prosecutionssafety

legislation

Riskofemployment

claims

Focusofasocialmedia

campaign

Yourorganisationbeinga

victimofacrime

2022

Cyberattack

Dataloss

Cyberextortion

Regulatoryrisk(includingthreatoffinesand

penalties)

Riskofahealthand

safety/environmental

prosecutionssafety

legislation

Yourorganisationbeinga

victimofacrime

Briberyand

corruption

hasremainedthesameforD&O’s

2023

Cyberattack

Dataloss

Cyberextortion

Regulatoryrisk(includingthreatoffinesand

penalties)

Healthandsafety

prosecutions

Briberyand

corruption

Yourorganisationbeinga

victimofacrime

Top7risksforDirectorsandOfficers

Historiccomparison

Weaskeddirectorsabout28risks(withsupplementaryquestionsonsomeoftheriskareas).Detailedresultsfromthe28riskscanbefoundintheAppendix.

Overalltheresultsareveryconsistentwithlastyear;cyberattack,datalossandcyberextortion(thelatterbeinganewriskareaidentifiedlastyear)continuingtodominatethehighestranks.Inpercentageterms,cyberrisksareallsignificantlyaboveotherrisks.

Sample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'foreachrisk

Source:2011-2023Directors'andOfficers'LiabilityInsuranceSurveys

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

11

Introduction

ResponsesbyCountry

AbouttheSurvey

Top7risksforDirectorsandOfficers

Byregion

Climatechangeisinthetop5forGBandAustralia,havingnotappearedinthetop5foranyregionlastyear(althoughitwasforsomeindustriesandforlargercompanies).

TheGBchangeisremarkable,althoughitshouldbenotedthatallofthetop7risksinGBarewithin5%ofeachother.

Itisinterestingtoseeinsolvencymakeitswayintothetop7forGBand

LatAm.

Notablenewrisksincludesystemsandcontrols,sufficientcyberexpertiseatboardlevelandemployeecrimeandcybercrimeasasub-setofcrimerisks.

#1

#2

#3

#4

#5

#6

#7

Europe

Cyberattack67%

Dataloss66%

Cyberextortion62%

Healthandsafety

prosecutions54%

Briberyand

corruption53%

Cybercrime52%

Regulatorybreach

52%

GB

Climate

change44%

Cyber

extortion43%

Dataloss43%

Cyberattack42%

Regulatory

breach40%

Cybercrime40%

Insolvency/bankruptcy/financial

distress39%

Asia

Cyberattack60%

Regulatory

breach60%

Dataloss59%

Healthandsafety

prosecutions58%

Briberyand

corruption57%

Systemsandcontrols

55%

Cyber

extortion55%

NorthAmerica

Cyberattack72%

Dataloss68%

Cyber

extortion60%

Cybercrime55%

Sufficientcyber

expertiseatboard

level38%

Regulatory

breach36%

Systemsand

controls36%

LatAm

Dataloss87%

Cyberattack84%

Cybercrime83%

Insolvency/bankruptcy/financialdistress78%

Employee

crime78%

Cyber

extortion76%

Regulatory

breach76%

Australasia

Cyberattack46%

Dataloss42%

Cyber

extortion38%

Climate

change31%

Healthandsafety

prosecutions27%

Cybercrime23%

Sufficientcyber

expertiseatboard

level23%

ranking

Risk

ranking

hasdecreasedforD&O’s

Risk

hasremainedthesameforD&O’s

ranking

Risk

hasincreasedforD&O’s

Sample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'foreachrisk

Source:2022-2023Directors'andOfficers'LiabilityInsuranceSurveys

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

12

Introduction

ResponsesbyCountry

AbouttheSurvey

Top7risksforDirectorsandOfficers

Byrevenue

Therespondentdemographicshowsafairlyevensplitacrosstheserevenuecategories.

Weincludedcybercrimeandsufficientcyberexpertiseatboardlevelasnewrisksforthe2022-23surveyandtheyhaveimmediatelymadetheirwayintothetop7risks.

Whilecyber-relatedissuesmakeupthetop3(andnumber4or5forsomerevenuecategorieswherecybercrimeisincluded)acrosstheboard,itisinterestingtoseeclimatechangeasthenumber4riskfordirectorsofthelargestcompaniesandtoseethathealth&safetyonlymakesitintothetop7fortwooftherevenuecategories.

Lessthan$50million

$50milliontoless

than$1billion

Cyberattack59%

Dataloss57%

Cyberextortion55%

Healthandsafety

prosecutions48%

Cybercrime48%

Regulatorybreach43%

Briberyandcorruption43%

$1billiontolessthan$5billion

Cyberattack53%

Dataloss52%

Cyberextortion49%

Regulatorybreach48%

Cybercrime45%

Insolvency/bankruptcy/financial

distress43%

Focusofasocialmedia

campaign42%

$5billionormore

Cyberattack64%

Dataloss63%

Cyberextortion60%

ClimateChange53%

Briberyand

corruption52%

Regulatorybreach52%

Healthandsafety

prosecutions52%

Dataloss64%

Cyberattack61%

Cyberextortion52%

Cybercrime51%

Insolvency/bankruptcy/financialdistress51%

Regulatorybreach47%

Sufficientcyberexpertiseatboardlevel46%

#1

#2

#3

#4

#5

#6

#7

ranking

Risk

ranking

hasdecreasedforD&O’s

hasremainedthesameforD&O’s

ranking

Risk

Risk

hasincreasedforD&O’s

Sample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'foreachrisk

Source:2011-2023Directors'andOfficers'LiabilityInsuranceSurveys

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

13

#1

#2

#3

#4

#5

#6

#7

ranking

Risk

ranking

Risk

ranking

hasdecreasedforD&O’s

Risk

Introduction

ResponsesbyCountry

AbouttheSurvey

Financeand

insurance

Cyberattack74%

Dataloss73%

Cybercrime68%

Cyberextortion68%

Briberyand

corruption67%

Regulatorybreach

64%

Breachofsanctions

59%

hasincreasedforD&O’s

Industrial

Cyberattack63%

Dataloss59%

Cyber

extortion56%

Healthandsafety

prosecutions50%

Regulatory

breach48%

Briberyand

corruption47%

Cybercrime46%

Healthcare

Dataloss59%

Cyberattack56%

Cyber

extortion54%

Cybercrime45%

Healthandsafety

prosecutions44%

Regulatory

breach41%

Civil

litigation41%

Services

Cyberattack67%

Dataloss67%

Cyber

extortion58%

Cybercrime53%

Criminal

proceedings50%

Focusofasocial

mediacampaign

49%

Briberyand

corruption48%

TransportationandRetail

Cyberattack56%

Dataloss55%

Healthandsafety

prosecutions55%

Regulatory

breach53%

Cyber

extortion52%

Focusofasocial

mediacampaign

51%

Cybercrime50%

hasremainedthesameforD&O’s

Energy

andUtilities

Climate

change65%

Cyber

extortion62%

Cyberattack61%

Healthandsafety

prosecutions61%

Pollution58%

Dataloss57%

Regulatory

breach52%

Top7risksforDirectorsandOfficers

Byindustry

Climatechange

isnowatthetop

oftherisksfor

directorsinthe

Energy&Utilities

sectorwhohave

alsoidentified

pollutionasakey

risk.Interestingly

othersectorshave

takenadifferent

viewwithneither

riskrankinginthe

Top7.

Whilewepreviouslyaskedaboutlegalrisks,wedidn'tpreviouslyhaveageneralcivillitigationcategory,soitisinterestingtoseethatinitsfirstyearithasmadeitintothetop7risksfortheHealthcaresector.

Sample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'foreachrisk

Source:2022-2023Directors'andOfficers'LiabilityInsuranceSurvey

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

14

Responses

Introduction

AbouttheSurvey

Directors'and

Officers'insurance

coverage

byCountry

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-DetailedResults

15

#1

#2

#3

#4

#5

#6

#7

ranking

Risk

ranking

Risk

ranking

hasdecreasedforD&O’s

Risk

Australasia

Introduction

ResponsesbyCountry

AbouttheSurvey

Asia

NorthAmerica

Europe

Coverforcybersecurity-relatedrisks74%

Coverforfinesandpenalties69%

Control/settlementofclaims68%

Coverforclaimsinalljurisdictions66%

Achoiceoflawyer

66%

Costoflegaladviceattheearlystagesofaninvestigation66%

Abroaddefinitionofwhoisinsured66%

hasincreasedforD&O’s

GB

Costoflegaladviceattheearlystagesofaninvestigation58%

Control/settlement

ofclaims56%

ConflictofinterestbetweenaDirectorandthecompany49%

Abroaddefinitionofwhoisinsured44%

Coverforfinesand

penalties43%

Coverforclaimsinalljurisdictions42%

Howdisputeswiththeinsurerwillbedealtwith42%

Control/settlement

ofClaims59%

Coverforclaimsinalljurisdictions58%

Howdisputeswiththeinsurerwillbedealtwith52%

ConflictofinterestbetweenaDirectorandthecompany51%

Coverforcybersecurity-relatedrisks49%

Coverforfinesand

penalties47%

Costoflegaladviceattheearlystagesofaninvestigation45%

Achoiceoflawyer75%

Coverforclaimsinalljurisdictions72%

Coverforcybersecurity-relatedrisks70%

Control/settlement

ofclaims68%

Howdisputeswiththeinsurerwillbedealtwith62%

ConflictofinterestbetweenaDirectorandthecompany60%

Abroaddefinitionofwhoisinsured60%

hasremainedthesameforD&O’s

LatAm

Coverforfinesand

penalties84%

Coverforcybersecurity-relatedrisks84%

Coverforclaimsinalljurisdictions83%

Howdisputeswiththeinsurerwillbedealtwith82%

Control/settlementofclaims82%

Costoflegaladviceattheearlystagesofaninvestigation81%

Abroaddefinitionofwhoisinsured79%

Coverforcybersecurity-relatedrisks69%

Control/settlementofclaims67%

Coverforfinesand

penalties65%

Achoiceoflawyer

58%

Abroaddefinitionofwhoisinsured54%

CoverforESG-relatedrisks50%

Costoflegaladviceattheearlystagesofaninvestigation46%

Top7Directors'andOfficers'insurancecoverageareas

Byregion

CoverforESG-

relatedrisksisa

newcoveragearea

forthe2022-23surveyandonlyappearsasatop7issueinAustralasia.ThisisinterestinggiventheamountofattentionESGhashadinsome

areas.

Notethatcoverforfinesandpenaltiesisinthetop7foreveryregionexcept

NorthAmerica

(whereitwasinthetop7lastyear).Wehaveseensomeinsurersseektorestrictorevenremovethiscover,soitcontinuestobeacoveragepointtowatch.

Sample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'importantforeachrisk

Source:2022-2023Directors'andOfficers'LiabilityInsuranceSurveys

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

16

Introduction

ResponsesbyCountry

AbouttheSurvey

Partially

50%

Indemnification

Towhatextentdoesyourorganisationagreetoindemnifyitsdirectorsandofficers?

Itisinterestingtonotethat19%ofrespondentsdon'tknowtheextenttowhichthedirectorsandofficersoftheirorganisationareindemnified.

7%

9%

14%

19%

Notatall

Onlywhere

approvedbya

shareholdervote

Don'tknow

Other

Tothefullest

extentallowed

bylaw

Source:2022/2023Directors'andOfficers'LiabilityInsuranceSurvey

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

17

Introduction

ResponsesbyCountry

AbouttheSurvey

10%

9%

41%

40%

2%

69%

20%

9%

Expectations

(Previousyearsurvey)

8%

29%

47%

16%

Actualchange

(Currentyearsurvey)

17%

16%

3%

64%

13%

38%

31%

18%

2%

62%

19%

17%

Nextyear

Insurancepolicy–limits,retentionsandpremiums

Howhavethefollowingaspectsofyourorganisation’sDirectors'andOfficers'liabilityinsurancepolicychangedorareexpectedtochange?

Interestingtoseethatasignificantpercentageofrespondentssaytheirpremiumwentupin2022-23;thisisa7%increasethanthenumberofrespondentswhoexpectedanincreaseinthepreviousyear'ssurvey.

Theseresultsalsodemonstratethesofteninginthemarket,althoughthepositionsintheUSandGBmarketsareconsiderablybetterthanthisforclientswhoarenotexperiencingclaims.

PolicyLimit

Premium

Self-insuredretention

6

%

67%

13%

14%

Lastyear

1%

70%

10%

20%

4%

65%

11%

20%

DecreasedNochangeIncreasedDon'tknow

Someoutlierresultshavebeenexcluded.Note:Percentagesmaynotaddupto100%duetorounding.

Source:2021/2022and2022/2023Directors'andOfficers'LiabilityInsuranceSurvey.

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

18

Introduction

ResponsesbyCountry

AbouttheSurvey

7%

AlreadyimplementedConsidering

13%

12%

9%

8%

CaptiveinsurancevehicleforSideA(directors’andofficers’non-indemnifiedloss)

CaptiveinsurancevehicleforSidesB/C(companyexposureforindemnifyingdirectorsandofficersandforsecuritiesclaims)

Indemnificationtrustfordirectorliabilities

AlternativeRiskTransferoptions

HasyourorganisationimplementedorisitconsideringimplementinganyofthefollowingAlternativeRiskTransferoptionsforitsDirectors'andOfficers'liabilityrisk?

GiventhesofteningintheD&Omarket,itissomewhatsurprisingtoseethenumberofrespondentswhosaythattheyareconsideringalternativesolutionstoD&Oinsurance.

PersonalGuaranteeofdirectorliabilities

fromCEO/majorshareholder/Other

OtherAlternativeRiskTransferoption

Someoutlierresultshavebeenexcluded.

Source:2022/2023Directors'andOfficers'LiabilityInsuranceSurvey

BusinessOperationRisks

RisksforDirectorsandOfficers

Directors'andOfficers'insurance

coverage

Appendix-

DetailedResults

19

Introduction

ResponsesbyCountry

AbouttheSurvey

Countryofoffice

Captive