3.0
Underwriters Weigh InTM Survey
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Q1
Is D&O risk going up?
2025 Survey Results:
For yet another year, no underwriters think D&O risk is decreasing.
Woodruff Sawyer Commentary
While some underwriters believe that, broadly speaking, 2024 and 2025 are similar, an overwhelming majority of underwriters believe that increasing complexity and global volatility will inevitably lead to more D&O claims. AI is a named driver for underwriter anxiety, with concerns ranging from AI washing to being the cause of M&A and bankruptcies.
Underwriter Comments
I think this question could be taken a few different ways. [If you are asking from a D&O perspective,] I don’t think the risk of being litigated against will change much at all. If you’re asking from an UW point of view, I think D&O risk will go up in the sense that rates have fallen dramatically, so the same amount of claims will lead to greater losses or [less] profit, thus making D&O risks higher when compared to that metric.
Litigation funding [is] increasing the SCA filing rate.
We are in an era of accelerating risk, with an ever-evolving landscape of exposures covering geopolitical tensions, the AI boom, tariffs, increased cyber threats, social inflation, [and] supply chain disruption. The list of exposures that are front and center for boardroom discussion continues to grow.
Same trends as last year—no new catalyst
Complexity of many business models [combined] with the growth of AI will increase exposure.
“AI washing” is increasingly becoming a significant exposure, especially as the proliferation of AI in business grows.
Large new tech (AI) exposures/expectations and lack of funding in the biotech sector, causing more bankruptcies and M&A.
It seems plaintiff firms will be able to find anything to hang their hats on in this environment.