GLOBAL

FINEXDirectors'

andOfficers'LiabilitySurvey2023Welcometothe2023GlobalDirectors’andOfficers'LiabilitySurveyReportfromWTW

incollaborationwithClyde&CoLLP.We

have

continuedtheinternationalscopeofourreport,withresponsesfromdirectorsandriskmanagersin40countriesaroundtheworld.Aswithlastyear,

thisreportcontainssectionsonrisksfor

businesses,risksfor

directors,andvariousdirectors'andofficers'liability(D&O)insurancecoveragepoints.TABLE

OF

CONTENTS

(CLICK

ON

TITLE

TO

NAVIGATE

TO

PAGE)Introduction0203About

the

SurveyResponse

by

Country04Business

Operation

RisksHistorical

comparisonBy

revenue0506070809We

willbetakinganewapproachwithreportingonthesurveyresultsthisyear.Ourinitialreportwillpresentthesurveyresultsandthenwe

willbereleasingaseriesofseparatearticlesonvarioustopicsinspiredbythesurveyresultsandlookingatsomeofthesurveyresultsinmoredetail.Pleasecheckourwebsitefor

thelatestarticles.By

regionWhich

econcomicrisks

areimportant?Risks

for

Directors

and

Officers1011We

addedafew

newtopicstothesurveythisyearandremovedsomethatwethoughtwerenolongersorelevant.Cybercontinuestodominatetheresponses,withcybercrimeandhavingsufficientcyberexpertiseappearingastoprisksinseveralregionsandacrossseveralindustries.Theimportanceofclimatechangeasadirectorriskcontinuestofluctuate,goingdowninimportanceinsomeregionsandindustriesandsignificantlyupinothers.Itisnowthenumberoneriskfor

directorsintheEnergyandUtilitiessector.

We

alsoaddedaquestionabouttheimportanceofhavingESGcoverageunderaD&Opolicytooursurveyfor

thefirsttime,totryandreflecttheincreasingpublicdiscussionaroundthistopic.However,

onlyinAustralasiadidrespondentsconsiderthiswasinthetop7ofcoverageissues.Historical

comparisonTop

7

risks

for

Directors

and

Officers-by

regionTop

7

risks

for

Directors

and

Officers-by

revenueTop

7

risks

for

Directors

and

Officers-byindustry121314Directors'

and

Officers'

insurance

coverageTop7

D&O

insurance

coverage

areas–by

regionIndemnification151617We

hopethisgivesyouaninterestingtasteroftheresultsfromthesurveyandwhetsyourappetitetofindoutmore.Ifyouhave

anyquestionsabouttheresultsorthetopicsweaskedabout,orifyouhave

anysuggestionsforquestionswecouldcovernextyear,

pleasedocontactanyofthepeopleshowninthecontactpagesattheendofthisreport.Insurance

policy–

limits,

retentions

and

premiumsAlternative

RiskTransferoptions1819-20Appendix

-

Detailed

ResultsDirectors

andOfficers

risk

ranking

overviewHistorical

comparisonBy

region212223242526Angus

DuncanGlobal

D&O

Coverage

Specialist

(ex

NA)+44203124

8386angus.duncan@By

revenueJames

CooperPartner,

LondonByindustry+44207876

6388er@Contributors27Directors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results2IntroductionAbout

the

SurveyAbout

the

SurveyGlobalresponsesIndustrydistributionCompanytypeRevenue

(USD)For

profit,private$5billionormore42%26%26%8%$1billiontolessthan$5billionFor

profit,listedFamily-owned30%7%26%$50milliontolessthan$1billion11%8%31%11%Lessthan$50million-profitNon-profit18%14%17%Government-owned6%17%Other3%IndustrialServicesEnergy&UtilitiesHealthcareOtherTransportation&RetailFinanceandInsuranceNote:RevenuesinEUR,GBP,

JPYandCNYwereconvertedtoUSDwithratesasofNovember8,

2022.Percentagesmaynotaddupto100%duetorounding.'Don’tknow'responseshavebeenexcluded.Source:2022/2023Directors'andOfficers'LiabilityInsuranceSurveyDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results3IntroductionAbout

the

SurveyResponseby

country(Hover

over

themaptoseepercentagebreakdown)Europe37%GreatBritain24%North

America9%Asia12%Australasia4%LatinAmerica13%Africa1%Note:Percentagesmaynotaddupto100%duetoroundingSource:2022/2023Directors'andOfficers'LiabilityInsuranceSurveyDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results4IntroductionAbout

the

SurveyBusinessoperationrisksDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results5IntroductionAbout

the

SurveyBusinessoperationrisksHistoricalcomparisonHow

significant

do

you

think

the

following

issues

are

for

your

organisation’s

business

operations?Whilstitisnotsurprisingthateconomicrisksremaintheno.1

risk,thefactthatsignificantlyfewerdirectorsseethemassignificantis.202320222021EconomicrisksCyberrisks63%62%61%71%67%67%Intermsofemergingrisks,regulatory/legislativechangecomesstraightinatnumber3for

itsfirstyear,whilstgeopoliticalriskshaveincreasedinimportance(upto4thplacefrom6thlastyear)althoughperhapslessthanmighthavebeenexpectedgiventheUkraineconflictandotherinternationaltensions.Regulatory/legislativechangeGeopoliticalrisks46%42%44%38%COVID-19andlockdownmeasures59%76%Technologicaladvances(artificialintelligenceandmachinelearning)42%52%52%COVID-19andBrexitrisks,whilestillinthetop5continuetodecreaseinimportance.ClimatechangeDiversity,equityandinclusionBrexit39%50%39%31%30%Despitesignificantpublicandregulatoryattentionclimatechangehasfalleninbothpositionand19%34%11%percentage.AnotherhighprofileriskESG,

Diversity,EquityandInclusion(DE&I)isstillnothighlyranked.Sample:Allsurveyparticipants.Notethatthe2021surveyhadamorelimitedgeographicscope.Source:2021-2023Directors'andOfficers'LiabilityInsuranceSurvey(%of‘very’or‘extremelysignificant’)Directors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results6IntroductionAbout

the

SurveyBusinessoperationrisksByregionHow

significant

do

you

think

the

following

issues

are

for

your

organisation’s

business

operations?Turning

toregionaldifferences,climatechangeriskisdownacrosstheboardexceptintheUSwhereitwasflat,withthemostsignificantdropsbeinginEuropeandAsia.Europe70%GBAsia69%65%North

AmericaLatAmAustralasia35%EconomicrisksCyberrisks43%43%55%75%60%28%30%30%22%30%2%89%64%78%65%Regulatory/legislativechangeGeopoliticalrisks69%34%61%85%58%EconomicrisksarenowseenaslesssignificantbyGBdirectors(alargefall).ThereisasimilarpositioninNorthAmericaandLatAmbutEuropeandirectorshavetakena47%38%37%41%42%57%66%12%COVID-19andlockdownmeasures42%51%60%19%Technologicaladvances(artificialintelligenceandmachinelearning)40%40%42%58%31%ClimatechangeDiversity,equityandinclusionBrexit44%38%35%differentview.Geopoliticalriskisahighrisk(4)

forEurope,AsiaandLatAmdirectorswhilstdirectorsinNorthAmericaarelessconcerned.28%30%30%44%23%6%32%4%1%0%Sample:AllsurveyparticipantsSource:2022/2023Directors'andOfficers'LiabilityInsuranceSurvey(%of‘very’or‘extremelysignificant’)Directors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results7IntroductionAbout

the

SurveyBusinessoperationrisksByrevenueHow

significant

do

you

think

the

following

issues

are

for

your

organisation’s

business

operations?TherearemarkeddifferencesLess

than

$50

million$50

million

to

lessthan

$1

billion$1

billion

to

less

than$5

billion$5

billion

or

morebetweenhowdirectorsandEconomicrisksCyberrisks70%50%52%71%69%riskmanagersatsmallcompaniesareratingrisk60%68%60%57%comparedtothoseatlargeenterprises.Regulatory/legislativechangeisconsideredmoreofariskatsmallcompaniesthancyber.Regulatory/legislativechangeGeopoliticalrisks55%48%62%45%37%37%60%COVID-19andlockdownmeasures33%46%39%47%Othernotablerisks,whicharemorehighlyratedatthelargestcompanies,includeclimatechangeandTechnologicaladvances42%34%35%49%(artificialintelligenceandmachinelearning)38.64ClimatechangeDiversity,equityandinclusionBrexit34%34%35%56%geopoliticalrisks.21%26%31%42%14%7%11%16%Sample:AllsurveyparticipantsSource:2022-2023Directors'andOfficers'LiabilityInsuranceSurvey(%of‘very’or‘extremelysignificant’)Directors'

andResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results8IntroductionAbout

the

SurveyOfficers'

insurancecoverageWhich

economicrisksare

important?How

significant

do

you

think

the

following

economic

risks

are

for

your

organisation’s

business

operations?Thisyearwesoughtmoredetailonwhicheconomicrisksrespondentsarefocussedon.Thisshowedanequalitybetweeninflationand69%67%Inflationrecession,withlessfocusonthejobmarket.Havingsaidthat,thefiguresshowthatmorethan50%ofdirectorsfocussingoneconomicrisksconsideredtheriskrelatingtothejobmarketisatleastsignificant.Recession55

%Jobmarket(recruitmentandretention)Sample:OnlythosewhobelieveeconomicrisksareatleastsignificantSource:2022/2023Directors'andOfficers'LiabilityInsuranceSurvey(%of‘very’or‘extremelysignificant’)Directors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results9IntroductionAbout

the

SurveyRisksfor

DirectorsandOfficersDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results10IntroductionAbout

the

SurveyTo

p7risksfor

DirectorsandOfficersHistoriccomparison20182019202120222023We

askeddirectorsabout28risks(withsupplementaryRiskofdataloss/databreach#1CyberattackDatalossCyberattackCyberattackquestionsonsomeoftheriskareas).Detailedresultsfromthe28riskscanbefoundintheAppendix.#2DatalossCyberattackCyberattackDatalossDatalossRegulatoryrisk(includingthreatoffinesandpenalties)Regulatoryrisk(includingthreatoffinesandpenalties)Regulatoryandotherinvestigations#3#4CyberextortionCyberextortionOveralltheresultsareveryconsistentwithlastyear;cyberattack,datalossandcyberRisk

of

a

health

andsafety/environmentalprosecutions

safetylegislationRegulatoryrisk(includingthreatoffinesandpenalties)Regulatoryrisk(includingthreatoffinesandpenalties)Health

and

safetylegislationLitigationriskextortion(thelatterbeinganewriskareaidentifiedlastyear)continuingtodominatethehighestranks.Inpercentageterms,cyberrisksareallsignificantlyaboveotherrisks.Risk

of

a

health

andsafety/environmentalprosecutions

safetylegislationRegulatoryrisk(includingthreatoffinesandpenalties)Focus

of

a

socialmedia

campaignRisk

of

employmentclaimsHealth

and

safetyprosecutions#5#6#7Class

action

lawsuitsagainst

the

company

andits

directorsYourorganisation

beinga

victim

of

a

crimeFocus

of

a

social

mediacampaignYourorganisation

being

avictim

of

a

crimeBriberyandcorruptionRisk

of

a

health

andsafety/environmentalprosecutions

safetylegislationEmployment

practicesclaimsYourorganisation

being

avictim

of

a

crimeBriberyandcorruptionYourorganisation

being

avictim

of

a

crimeRiskrankinghasremainedthesameforD&O’sRiskrankinghasincreasedforD&O’sRiskrankinghasdecreasedforD&O’sSample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'for

eachriskSource:2011-2023Directors'andOfficers'LiabilityInsuranceSurveysDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results11IntroductionAbout

the

SurveyTo

p7risksfor

DirectorsandOfficersByregionEuropeGBAsiaNorth

AmericaLatAmAustralasiaClimatechangeisinthetop5forGBandAustralia,havingnotappearedinthetop5for

anyregionlastyear(althoughitwasfor

someindustriesandforlargercompanies).Climate#1#2#3Cyber

attack

67%Cyberattack60%Dataloss87%Cyberattack46%Cyberattack72%change44%CyberRegulatorybreach60%Data

loss

66%Dataloss68%Cyberattack84%Cybercrime83%Dataloss42%extortion43%Cyberextortion60%Cyberextortion38%Cyberextortion62%Dataloss43%Dataloss59%TheGBchangeisremarkable,althoughitshouldbenotedthatallofthetop7risksinGBarewithin5%

ofeachother.Insolvency/Healthandsafetyprosecutions54%Healthandsafetyprosecutions58%Climatechange31%#4#5#6#7Cyberattack42%Cybercrime55%bankruptcy/financialdistress78%Sufficientcyberexpertiseatboardlevel38%Briberyandcorruption53%Regulatorybreach40%Briberyandcorruption57%Employeecrime78%Healthandsafetyprosecutions27%Itisinterestingtoseeinsolvencymakeitsway

intothetop7forGBandLatAm.Systemsandcontrols55%Regulatorybreach36%Cyberextortion76%Cybercrime52%Cybercrime40%Cybercrime23%Insolvency/bankruptcy/financialdistress39%Sufficientcyberexpertiseatboardlevel23%Notablenewrisksincludesystemsandcontrols,Regulatory

breach52%Cyberextortion55%Systemsandcontrols36%Regulatorybreach76%sufficientcyberexpertiseatboardlevelandemployeecrimeandcybercrimeasasub-setofcrimerisks.RiskrankinghasremainedthesameforD&O’sRiskrankinghasincreasedforD&O’sRiskrankinghasdecreasedforD&O’sSample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'for

eachriskSource:2022-2023Directors'andOfficers'LiabilityInsuranceSurveysDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results12IntroductionAbout

the

SurveyTo

p7risksfor

DirectorsandOfficersByrevenue$50

million

to

lessthan

$1

billion$1

billion

to

less

than$5

billionTherespondentdemographicLess

than

$50

million$5

billion

or

moreshowsafairlyevensplitacrosstheserevenuecategories.#1Dataloss64%Cyberattack

59%Cyberattack

53%Cyberattack

64%We

includedcybercrimeandsufficientcyberexpertiseatboardlevelasnewrisksfor

the2022-23surveyandtheyhave

immediatelymadetheirway

intothetop7risks.#2Cyberattack61%Dataloss57%Dataloss52%Dataloss63%#3#4#5#6Cyberextortion52%Cyberextortion55%Cyberextortion49%Cyberextortion60%Healthandsafetyprosecutions48%Cyber

crime

51%Regulatory

breach

48%Cyber

crime

45%ClimateChange53%Whilecyber-relatedissuesmakeupthetop3(andnumber4or5for

somerevenuecategorieswherecybercrimeisincluded)acrosstheboard,itisInsolvency/bankruptcy/financialdistress51%Bribery

andcorruption

52%Cyber

crime

48%Insolvency/bankruptcy/financialdistress

43%Regulatory

breach

47%Regulatory

breach

43%Regulatory

breach

52%interestingtoseeclimatechangeasthenumber4riskfor

directorsofthelargestcompaniesandtoseethatSufficient

cyber

expertise

at

boardlevel

46%Focus

of

a

social

mediacampaign

42%Healthandsafetyprosecutions52%#7Bribery

and

corruption

43%RiskrankinghasremainedthesameforD&O’sRiskrankinghasincreasedforD&O’sRiskrankinghasdecreasedforD&O’shealth&safetyonlymakesitintothetop7for

twooftherevenuecategories.Sample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'for

eachriskSource:2011-2023Directors'andOfficers'LiabilityInsuranceSurveysDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results13IntroductionAbout

the

SurveyTo

p7risksfor

DirectorsandOfficersByindustryFinance

andTransportationand

RetailEnergyIndustrialHealthcareServicesClimatechangeisnowatthetopoftherisksfordirectorsintheEnergy&Utilitiessectorwhohavealsoidentifiedpollutionasakeyrisk.InterestinglyothersectorshavetakenadifferentviewwithneitherriskrankingintheTop

7.insuranceand

UtilitiesClimatechange65%#1#2#3#4#5Cyberattack74%Dataloss59%Cyberattack67%Cyberattack63%Cyberattack56%CyberDataloss73%Dataloss59%Cyberattack56%Dataloss67%Dataloss55%extortion62%Cyberextortion56%Cyberextortion54%Cyberextortion58%Healthandsafetyprosecutions55%Cybercrime68%Cyberextortion68%Cyberattack61%Healthandsafetyprosecutions50%Regulatorybreach53%Healthandsafetyprosecutions61%Cybercrime45%Cybercrime53%Whilewepreviouslyaskedaboutlegalrisks,wedidn'tpreviouslyhaveageneralcivillitigationcategory,soitisinterestingtoseethatinitsfirstyearithasmadeitintothetop7risksfor

theHealthcaresector.Briberyandcorruption67%Regulatorybreach48%Healthandsafetyprosecutions44%Criminalproceedings50%Cyberextortion52%Pollution58%Dataloss57%FocusofasocialFocusofasocialRegulatorybreach64%Briberyandcorruption47%Regulatorybreach41%#6#7mediacampaignmediacampaign51%49%Breachofsanctions59%Civillitigation41%Briberyandcorruption48%Regulatorybreach52%Cybercrime46%Cybercrime50%RiskrankinghasremainedthesameforD&O’sRiskrankinghasincreasedforD&O’sRiskrankinghasdecreasedforD&O’sSample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'foreachriskSource:2022-2023Directors'andOfficers'LiabilityInsuranceSurveyDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results14IntroductionAbout

the

SurveyDirectors'

andOfficers'insurancecoverageDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results15IntroductionAbout

the

SurveyTo

p7Directors'

andOfficers'insurancecoverage

areasByregionEuropeGBAsiaNorth

AmericaLatAmAustralasiaCoverfor

ESG-relatedrisksisanewcoverageareafor

the2022-23surveyandonlyappearsasatop7issueinAustralasia.ThisisinterestinggiventheamountofattentionESGhashadinsomeareas.Coverforcybersecurity-relatedrisks74%Costoflegaladviceattheearlystagesofaninvestigation58%Coverforcybersecurity-relatedrisks69%Control/settlementofClaims59%Coverforfinesandpenalties84%#1#2#3Achoiceoflawyer75%Coverforcybersecurity-relatedrisks84%Coverforfinesandpenalties69%Control/settlementofclaims56%Coverforclaimsinalljurisdictions58%Coverforclaimsinalljurisdictions72%Control/settlementofclaims67%ConflictofinterestbetweenaDirectorandthecompany49%Howdisputeswiththeinsurerwillbedealtwith52%Coverforcybersecurity-relatedrisks70%Control/settlementofclaims68%Coverforclaimsinalljurisdictions83%Coverforfinesandpenalties65%ConflictofinterestbetweenaDirectorandthecompany51%Howdisputeswiththeinsurerwillbedealtwith82%Coverforclaimsinalljurisdictions66%Abroaddefinitionofwhoisinsured44%Control/settlementofclaims68%Achoiceoflawyer58%Notethatcoverforfinesandpenaltiesisinthetop7foreveryregionexceptNorthAmerica(whereitwasinthetop7lastyear).

Wehave

seensomeinsurersseektorestrictorevenremovethiscover,soitcontinuestobeacoveragepointtowatch.#4#5#6#7Coverforcybersecurity-relatedrisks49%Howdisputeswiththeinsurerwillbedealtwith62%Achoiceoflawyer66%Coverforfinesandpenalties43%Control/settlementofclaims82%Abroaddefinitionofwhoisinsured54%Costoflegaladviceattheearlystagesofaninvestigation66%ConflictofinterestbetweenaDirectorandthecompany60%Costoflegaladviceattheearlystagesofaninvestigation81%Coverforclaimsinalljurisdictions42%Coverforfinesandpenalties47%CoverforESG-relatedrisks50%Howdisputeswiththeinsurerwillbedealtwith42%Costoflegaladviceattheearlystagesofaninvestigation45%Costoflegaladviceattheearlystagesofaninvestigation46%Abroaddefinitionofwhoisinsured66%Abroaddefinitionofwhoisinsured60%Abroaddefinitionofwhoisinsured79%RiskrankinghasremainedthesameforD&O’sRiskrankinghasincreasedforD&O’sRiskrankinghasdecreasedforD&O’sSample:Allsurveyparticipants.Note:Rankedbasedonpercentage'very'or'extremelysignificant'importantfor

eachriskSource:2022-2023Directors'andOfficers'LiabilityInsuranceSurveysDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results16IntroductionAbout

the

SurveyIndemnificationTo

what

extent

does

your

organisation

agree

to

indemnify

its

directors

and

officers?ItisinterestingtonotethatPartially19%

ofrespondentsdon't50%knowtheextenttowhichthedirectorsandofficersoftheirorganisationareindemnified.19%14%9%7%NotatallOtherOnlywhereapprovedbyashareholdervoteTo

thefullestextentallowedbylawDon'tknowSource:2022/2023Directors'andOfficers'LiabilityInsuranceSurveyDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results17IntroductionAbout

the

SurveyInsurancepolicy–limits,retentions

andpremiumsHow

have

the

following

aspects

of

your

organisation’s

Directors'

and

Officers'

liability

insurance

policy

changed

or

are

expected

to

change?Interestingtoseethatasignificantpercentageof

respondentssaytheirpremiumwentupin2022-23;thisisa7%increasethanthenumberof

respondentswhoexpectedanincreaseinthepreviousyear'ssurvey.Theseresultsalsodemonstratethesofteninginthemarket,althoughthepositionsintheUSandGBmarketsareconsiderablybetterthanthisforclientswhoarenotexperiencingclaims.Policy

LimitPremiumSelf-insured

retentionExpectations41%40%67%

13%

14%2%3%69%20%

9%9%8%10%16%6%(Previous

year

survey)Last

yearActualchange(Current

year

survey)64%62%17%

16%29%47%1%70%

10%

20%Next

year2%19%

17%13%38%31%18%4%65%

11%20%DecreasedNochangeIncreasedDon'tknowSomeoutlierresultshavebeenexcluded.Note:Percentagesmaynotaddupto100%duetorounding.Source:2021/2022and2022/2023Directors'andOfficers'LiabilityInsuranceSurvey.Directors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results18IntroductionAbout

the

SurveyAlternative

Risk

Transfer

optionsHas

your

organisation

implemented

or

is

it

considering

implementing

any

of

the

following

Alternative

Risk

Transfer

options

for

its

Directors'and

Officers'

liability

risk?GiventhesofteningintheD&Omarket,itisCaptiveinsurancevehiclefor

SideAsomewhatsurprisingtoseethenumberofrespondentswhosaythattheyareconsideringalternativesolutionstoD&Oinsurance.13%(directors’andofficers’non-indemnifiedloss)Captiveinsurancevehiclefor

SidesB/C(companyexposureforindemnifyingdirectorsandofficersandforsecuritiesclaims)12%Indemnificationtrustfor

directorliabilities9%8%PersonalGuaranteeofdirectorliabilitiesfromCEO/major

shareholder/OtherOtherAlternativeRiskTransferoption7%AlreadyimplementedConsideringSomeoutlierresultshavebeenexcluded.Source:2022/2023Directors'andOfficers'LiabilityInsuranceSurveyDirectors'

andOfficers'

insurancecoverageResponsesbyCountryBusinessOperation

RisksRisks

for

Directorsand

OfficersAppendix

-Detailed

Results19IntroductionAbout

the

SurveyAlternative

Risk

Transfer

optionsHas

your

organisation

implemented

or

is

it

considering

implementing

any

of

the

following

Alternative

Risk

Transfer

options

for

its

Directors'and

Officers'

liability

risk?Country

of

officeEuropeGBAsiaNorth

AmericaLatAmAustralasiaCaptiveinsurancevehiclefor

SideA(directors’andofficers’non-indemnifiedloss)11%18%7%19%9%20%Captiveinsurancevehiclefor

SidesB/C(companyexposureforindemnifyingdirectorsandofficersandforsecuritiesclaims)9%7%5%7%20%7%6%6%7%15%17%12%27%Indemnificationtrustfor

directorliabilitiesOtherAlternativeRiskTransferoption4%13%12%2%2%13%8%8%16%PersonalGuaranteeofdirectorliabilitiesfromCEO/major

shareholder/Other13%4%AlreadyimplementedConsideringSomeoutlierresultshavebeenexcluded.Source:2022/2023Dire