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, errors, negligence, or mismanagement. While Asia is generally still a low-risk environment compared to other regions, D&O claims are increasingly subject to disputes — or at least a protracted and inefficient claims process — especially 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) Policy exclusions

Coverage innovation in Asia has been slow compared to some other regions. D&O policies often include more exclusions than elsewhere. This creates more scope for different coverage interpretation 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 claim experience. Traditional D&O policies often have very specific triggers, and even when there is an allegation of wrongdoing, coverage may not respond due to policy technicalities. 

3) Defence counsel costs dispute

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

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

How Marsh Risk’s Blue Series D&O wording 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 wording is one of these initiatives, initially available to organisations headquartered in Hong Kong and Singapore 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.

With compulsory business liquidations in Singapore reaching a five-year high in the first half of 2025, greater certainty over how D&O policies respond has become increasingly important, as directors and officers face greater scrutiny during periods of financial difficulty.

Built on our experience of managing D&O claims across Asia, our wording 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 wording provides broader coverage compared to most D&O products in Asia, including:

• Fewer exclusions: Structured with two exclusions compared to the 10 to 12 exclusions typically found in standard D&O wording, 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.
• Claims protocol: Replacing the usual claims conditions, the protocol provides more buyer-friendly, pre-agreed defence counsel panels and structured bilateral approval processes to enable timely and appropriate legal representation.

Click here to explore D&O insurance coverage options.