Rising D&O damage: A look at the current situation in Essen

Rising D&O damage: A look at the current situation in Essen

An alarming trend is evident in the world of D&O insurance: The GDV statistics are waving, because the number of damage and the compensation paid has already increased in the second year in a row. This drama is considered by the overall association of the insurance industry (GDV) as a result of the tense economic situation and stricter legal requirements.

Finlex, a key player in the insurance sector, confirms that the numbers may not depict the full truth, since not all providers in Germany participate in this critical statistics. But the own experiences of Finlex coincide with the comprehensive data of the GdV.

alarming numbers from the D&O world

In a booming press release dated October 1st, 2024, the GDV has published the current figures: The contributions to D&O insurance have risen by 5 % to a whopping 458 million euros. At the same time, insurers increased their benefits by 9.4 % to an impressive 216 million euros. The result? A damage rate that shows with 39.4 % how urgently many companies need to support their insurers.

The reports are alarming: About a quarter of all cases at Finlex result from insolvencies from insured companies or their subsidiaries. This number is clear in connection with the forecast insolvency bends for 2024, where a 30 % increase is already recorded compared to the first half of 2023. For many companies, the situation is existential!

growing risk landscape and new challenges

In the current situation, managers are confronted with unprecedented challenges: the regulatory requirements are constantly increasing, and new liability risks lurk at every corner. The upcoming changes by the NIS-2 directive, which also exerts pressure on those responsible, are particularly explosive.

Despite all the dark forecasts, the Finlex's damage experience shows that many feared risks, especially in the ESG area, have so far resulted in no massive damage. Cyber ​​incidents have not yet become overwhelming despite an ubiquitous topic. Nevertheless, the number of classic damage reports remains significant, provoked by the tense economic situation.

An interesting turn: The majority of the damage arises arises from internal conflicts, but also allegations of legal nature that are associated with criminal investigations. This shows again that those responsible rely on a massive assumption of defense by their insurers, which is increasingly complicated to complicated exam scenarios.

for 2025 will continue to be expected with a large number of D&O damage cases. The constant threat of “new” liability risks, such as violations of the delivery chain duty law, does not fail. Again, it becomes noticeable that the topic of IT compliance is becoming increasingly important.

The focus of these developments is Finlex, a pioneer in the digital insurance business, which operates the requirements of the market with the latest technology and innovative products. With its state -of -the -art platform, Finlex offers a central point of contact for insurance brokers and the necessary infrastructure to operate your customers as best as possible.

Where does this trend lead? A race against the time in which companies and insurers are equally challenged to be able to master the challenges of today. The uncertainty remains, but one thing is clear: the D&O insurance landscape will continue to change drastically!