Europe’s financial institutions are navigating a rapidly evolving D&O landscape shaped by regulatory scrutiny, geopolitical instability, and softening market conditions. Capacity continues to grow as insurers expand line sizes and new entrants intensify competition, pressuring prices and prompting calls for greater underwriting discipline.
Speaking to trade publication Insurance Business, Alta Signa’s Ingo Trede highlights how regulatory investigations, especially around anti-money laundering (AML) and know-your-customer (KYC) rules, are driving liability, while cyber-related and financial crime exposures are rising. Despite heightened risks, market softness has led to broader coverage and even the removal of some AML exclusions.
ESG and Cyber Resilience
Ingo also highlights growing concerns around ESG and cyber resilience. While greenwashing claims are yet to materialize in Europe, evolving frameworks such as the Digital Operational Resilience Act (DORA) are reshaping risk management expectations. Meanwhile, emerging issues - from AI governance to cross-border regulation - remain difficult to quantify, raising questions about market sustainability amid continued softening.
Eastern Europe stands apart, with political instability and differing governance structures creating unique D&O exposures. Misaligned global sanctions and compliance regimes further complicate matters for multinational boards.
Trede warns that without greater caution, a sudden market correction could follow any surge in claims or capital losses.