In Asia, the Directors and Officers liability (D&O) insurance market has consistently been a buyers’ market, with low premium rates, broad coverage, and a multitude of insurers competing to provide capacity for client programmes. While some sectors of the market became more challenging towards the end of 2019, several other factors have contributed to what is quickly becoming a hardening market in Asia.
As demonstrated below, the D&O market cycle has transitioned to a period of increasing premiums and reduced capacity.
As Asian multinationals expand globally, they face a complex web of regulations across jurisdictions, subjecting themselves to claims from various stakeholders.
Occurring when some adverse event at a company triggers a securities claim, insurers have expressed concerns about potential future sources of such claims.
As the virus rapidly spread, many businesses had to react quickly to the restrictions on operations and staff, with profits expected to be affected through supply chain disruption, drops in consumer demand, and closures of offices and factories.
Businesses can achieve the best outcome by acting early and staying engaged.
Download our paper to learn how.