Unpredictable geopolitics and growing cyber events key D&O risks – Allianz Commercial

An erratic geopolitical landscape, persistent macroeconomic uncertainty and ever growing cyber risks are piling pressure onto corporate boards of all sizes, according to Allianz Commercial’s latest Directors’ and officers’ (D&O) insurance insights report.

The report, released today (3 December 2025), highlighted how these factors were driving firms to make “significant changes” in financial, legal and regulatory environments, which in turn increased the likelihood of exposure to “operational failings, financial loss and reputational harm”.

In particular, the report suggested that failures to adapt to legal or regulatory requirements in overseas territories, as well as “higher expectations for board level oversight of cyber security”, were driving claims against board members.

Bankruptcies also remained a persistent source of D&O claims and a separate report from Allianz Trade predicted global insolvencies to increase by 5% in 2026. Should the prediction come to pass, it would mark the fifth year of bankruptcy growth, leaving the rate 24% above pre-pandemic levels.

Increasingly complex

Jarrod Schlesinger, global head of financial lines and cyber at Allianz Commercial, said: “D&O liability continues to develop at pace, with an evolving regulatory and litigation environment, an increasingly complex risk landscape and an uncertain geopolitical and economic outlook.

“Against this backdrop, there has been a continual increase in the frequency of new claims against directors, now approaching or exceeding pre-pandemic levels in most regions around the world. Meanwhile, claims severity continues to be an issue in North America in particular.”

Dan Holloway, head of management liability commercial and professional indemnity at Allianz Commercial, added: “It’s important that directors understand their expanded fiduciary duties in the event of an insolvency, seek expert advice and keep detailed records of all key decisions. Such information will prove critical if D&Os face claims of mismanagement or allegations of conflicts of interest.”