The good news is that we still have a competitive US D&O insurance market for foreign IPOs, with an abundance of capacity in 2025. We are seeing more IPO activity, and companies have been able to build ample limits at competitive prices.

On the other hand, insurance carriers writing D&O insurance for foreign private issuers (FPIs) are concerned about litigation, geopolitical unrest, and AI adoption. With heightened tensions and conflicts around the world, companies that have direct exposure or face potential supply chain disruption may see more questions from D&O underwriters around their disclosures of these risks.

D&O underwriters are also paying close attention to companies’ adoption of AI given Europe’s developing posture when it comes to AI governance and technology oversight. We also see AI washing as a new source of litigation.

Another topic we are watching closely is any potential changes to the FPI disclosure regime. D&O insurance carriers underwriting FPIs may benefit from increased disclosure. On the other hand, as those of us who study the subject know, more disclosure requirements can also lead to more opportunities for the plaintiffs’ bar to bring frivolous but costly-to-defend securities class action suits alleging disclosure failures.