Insights / D&O

International Trends in D&O

Directors and Officers (D&O) Landscape Overview
Directors and officers are facing increasing risks due to rapidly evolving global issues such as AI, cybercrime, and ESG (Environmental, Social, and Governance). These challenges are making their roles more complex across different jurisdictions. Regulators, activist lawsuits, and new social pressures are adding to their exposures, with boards struggling to keep up. This situation can be described as “exposures without borders.”

US: DEI Shake-Up
Following the George Floyd incident, Diversity, Equity, and Inclusion (DEI) initiatives became highly valued in corporate America. However, Trump's 2025 executive order reversed this trend by eliminating federal DEI programs and targeting private policies. This has left directors and officers uncertain about what constitutes “illegal discrimination.” Companies are quickly removing DEI references from their filings, but directors are in a difficult position— abandoning DEI could lead to lawsuits, while maintaining it risks federal backlash.

Canada: Cyber Fraud Surge
In 2024, cyber losses in Canada amounted to $638 million, putting directors and officers under pressure to prevent cyberattacks and demonstrate robust plans. Failure to do so could result in shareholder and regulatory scrutiny. Even unusual targets like public libraries have been hacked, highlighting that no one is safe. D&O policies alone are insufficient without comprehensive cyber coverage.

Netherlands: Activist Litigation
Activist litigation is gaining momentum in the Netherlands.Notable cases include Shell’s 2021 climate case, which initially mandated a 45% emissions cut (later overturned), and a $10 million nitrogen emissions penalty on the state. These cases demonstrate activists' increasing influence against companies and governments. Although over 100 class actions have stalled in court since the new regime, insurers, particularly those in excess layers, are concerned about the unknown reserves.

Australia: Private Credit Risks
Private credit defaults are rising in Australia following the Global Financial Crisis (GFC) rules that pushed borrowers away from banks. The Australian Securitiesand Investments Commission (ASIC) is cracking down, with several recent claims related to thisissue. The High Court’s recent approval of contingency fees in class actions suggests more plaintiff-friendly litigation ahead, increasing pressure on directors and officers.

France: Social ESG Twist
A Supreme Court ruling in France held France Telecom executives accountable for “institutional moral harassment” after a restructuring led to over 30 suicides. This ruling did not require direct acts, only a toxic framework. Insurers are advised to thoroughly examine social policies now and ask tough questions upfront to avoid significant payouts later.