Increased regulatory, shareholder and media scrutiny combined with volatility in the global economy means that serving on the board of a company has never been so risky.
So says Willis in its latest boardroom guide to executive risk, while explaining that directors of large firms are facing a backdrop of “almost unparalleled financial instability, corporate crises, increasing regulation and public resentment over the perceived power of business executives”.
The guide explores the range of risks that accompany the role of a director, focusing on legal developments in key jurisdictions around the world, plus the risks posed for board directors by serious data breaches.
However, overall, Willis says that the global Directors & Officers (D&O) insurance market has grown in capacity, while a number of new insurers have entered the market for international excess.
The effect of this has been to keep pricing of D&O relatively stable in most areas, despite the economic turmoil and the heightened threat of litigation.