Cyber and Health and Safety Lead D&O Concerns, as Geopolitical Risk Breaks Into Rankings

Why It Matters

Boards must recalibrate risk oversight to address emerging geopolitical and cyber‑AI threats, while insurers face pressure to broaden coverage amid low confidence levels. The shift also signals intensified regulatory scrutiny and a more active M&A environment that could reshape liability landscapes.

Key Takeaways

• Health and safety tops 2026 D&O risk rankings globally
• Cyber, data loss, and AI rise as top concerns for boards
• Geopolitical risk enters top seven for first time
• Only 30% of firms trust current D&O coverage limits
• M&A D&O policies up 42% quarter‑over‑quarter

Pulse Analysis

The latest WTW and Reed Smith survey underscores a fundamental reshaping of boardroom risk priorities. Health and safety, traditionally a compliance checkbox, now dominates D&O concerns, reflecting heightened scrutiny of workplace well‑being after a series of high‑profile incidents. Close behind, data loss and cyberattacks remain perennial threats, but the rapid ascent of artificial‑intelligence risk—especially within banking—signals that directors must now grapple with technology governance, model bias, and the potential for AI‑related securities litigation, which accounted for roughly 8% of U.S. filings in 2025.

Regulatory momentum compounds these challenges. The EU’s Digital Operational Resilience Act (DORA) and the Corporate Sustainability Reporting Directive (CSRD) are forcing boards worldwide to adopt a controls‑centric approach, elevating data integrity and reporting accuracy to board‑level responsibilities. This regulatory pressure dovetails with the emergence of geopolitical risk in the top‑seven, as global instability forces directors to balance growth ambitions against supply‑chain disruptions, sanctions, and geopolitical volatility. The confluence of cyber, AI, and geopolitical factors creates a complex risk matrix that demands proactive resilience strategies rather than reactive crisis management.

On the insurance side, confidence in D&O coverage remains low, with just 30% of surveyed companies believing their policies are sufficient. The soft D&O market, combined with a 42% quarter‑over‑quarter surge in policies tied to M&A activity, suggests boards are seeking additional limits to hedge against heightened litigation exposure. As macro‑economic variables—interest rates, inflation, and growth volatility—loom, insurers and brokers must navigate pricing pressures while delivering tailored solutions that address the evolving risk landscape, ensuring directors are protected as they steer companies through an increasingly uncertain world.