The Perrigo judgment in Ireland emphasised the importance of aggregation clauses and specific matter exclusions in D&O insurance. In light of this, the committee continues to engage in discussions on the implications of these clauses, inviting legal experts to provide insights and explore their impact on coverage and claims.

The committee has been reviewing profit commission clauses, with members noting a trend of clauses lacking clawback provisions. As this is an area of growing interest and relevance, a general briefing session is being arranged to support member awareness and understanding of current approaches in the market.

The Shell derivative action decision case highlights the increasing legal scrutiny directors may face over climate-related governance and the evolving landscape of ESG litigation risks.

ESG is reshaping the D&O risk landscape, exposing directors to greater scrutiny, litigation and personal liability. For insurers, it introduces uncertainty, legal complexity and challenges in the underwriting process. As expectations around corporate responsibility rise, D&O underwriters must integrate ESG risk into their assessment models.