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Prediction: Insolvencies are likely to impact D&O claims across the region

Economics
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Prediction

An expected increase in business insolvencies across the region will drive claims from stakeholders challenging management accountability and general fiduciary duties. Research indicates an average rise of 6% in the next calendar year, with the construction, real estate and retail-focused sectors among the most vulnerable. Pressure on boards of directors will come from multiple directions, including inflation surges, interest hikes, geopolitical uncertainty and, closer to home, supply chain disruptions/collapses. We also anticipate growth in cyberattacks, causing an unwelcome knock-on effect for the purchasing company. One solution to managing the risks will mean a likely increase in interest in trade credit insurance. More generally, there will be an ongoing increase in regulatory regimes in the region and greater scrutiny of business compliance.  

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