We anticipate a sharp rise in claims as regulatory scrutiny intensifies across multiple fronts. Heightened focus by the Australian Securities and Investments Commission on general insurers’ obligations as Australian Financial Services Licensees - particularly in response to severe weather events - may prompt businesses to seek recovery of compliance costs under professional indemnity and management liability policies. Concurrently, the Australian Taxation Office’s pursuit of over A$35 billion in unpaid taxes from small businesses is expected to trigger a wave of D&O claims, as directors face personal liability and legal action. The overhaul of the anti-money laundering regime by AUSTRAC (Australia’s anti-money laundering and counter-terrorism financing regulator), with new obligations commencing in 2026, will likely lead to increased investigation-related claims as entities seek coverage for legal representation and regulatory response costs. Insurers must prepare for broader liability exposure and reassess policy wording, exclusions, and limits to ensure clarity and resilience in the face of evolving regulatory risk.