Top three D&O claims dispute triggers in Asia: How to improve claims outcomes

Directors and Officers (D&O) insurance protects organisations and their leaders from the financial impact of legal action arising from alleged wrongdoing, including errors, negligence, or mismanagement. While Asia is generally still a low-risk environment compared to some other regions, D&O claims are increasingly subject to disputes, or at least a protracted and inefficient claims process, just when organisations and their leaders expect protection the most. 

Top three reasons why D&O claims are disputed in Asia

Based on Marsh Risk’s analysis of D&O claims across Asia between 2021 and 2024, the following three reasons most frequently trigger disputes, delayed payouts, reduced settlements, or claims being declined:

1) Inappropriate policy exclusions

Coverage innovation in Asia has been slow compared to some other regions. D&O policies often include inappropriate exclusions that would not be accepted elsewhere. This creates more scope for different coverage interpretations and potential grounds for insurers to decline or limit claims. 

2) Insuring clauses not triggered

The way a policy responds to initial claim events, such as allegations, can significantly influence the overall claims experience. Traditional D&O policies often have very specific triggers, and even when there is a clear allegation of wrongdoing, coverage may not respond as expected due to policy technicalities. 

3) Defence counsel disputes

Based on Financial and Professional Liability (FINPRO) data from 2024–2025, 50% of D&O insurance claims in Asia involved some form of dispute over defence counsel appointments, costs incurred, or how the defence is managed. 

Reducing the likelihood of claims disputes and streamlining the process is best achieved by having a D&O policy that provides broader coverage, clear triggers, and sensible flexibility in defence counsel appointments, tailored to clients’ needs.

How Marsh Risk’s Blue Series D&O policy improves claims certainty

Marsh Risk’s FINPRO Practice is introducing a range of initiatives under the Blue Series, focused on improving policy coverage and driving innovation for our clients across Asia.

The Blue Series D&O policy is one of these initiatives, initially available to organisations headquartered in Hong Kong, Singapore, and Malaysia with more complex risk profiles or a stronger focus on coverage quality. It is designed to provide greater clarity, consistency and confidence in how coverage responds. Many of its features and principles will also be made available to Marsh Risk clients in other Asian markets, subject to local insurance market regulatory frameworks.

In Malaysia, continued regulatory focus on corporate misconduct has reinforced the importance of clarity over how D&O insurance responds when directors and officers face investigations or claims.

Built on our experience of managing D&O claims across Asia, our policy addresses key areas that influence claims outcomes, helping organisations and their leaders to reduce uncertainty and achieve smoother, more predictable claims resolution.

Exclusively available through Marsh Risk, the Blue Series D&O policy provides significantly broader coverage compared to the usual D&O products in Asia, including:

• Fewer exclusions — structured with two exclusions compared to the long list of inappropriate exclusions found in standard Asian D&O policies, thus supporting more consistent interpretation and improved claims certainty.
• All-inclusive coverage triggers — designed to allow quicker and more reliable policy responses and payments in the event of a D&O claim.
• Company investigation protection — built-in as standard core cover for the company in the event of an investigation. A standard D&O policy would typically provide investigation cover for directors only, not the company.
• Claims protocol — replacing the usual claims conditions, the protocol provides more client-friendly conditions, pre-agreed defence counsel panels and structured bilateral approval processes to enable timely and appropriate legal representation.