Cybersecurity is the top directors and officers (D&O) liability concern for organizations today, while claims brought by employees, including claims for harassment or discrimination, and regulatory enforcement risks are also critical D&O exposures. According to Willis Towers Watson’s 2018 Management Liability (Directors and Officers) U.S. Survey, the top D&O risks “in the coming year” include cyber incident/cyber claims (80%), claims by employees (55%), and regulatory and enforcement risks (48%).

Meanwhile, concern over investor claims ranked seventh among the top concerns, a finding the report said was “surprising” given the rise in shareholder activism and trends in securities class action filings. Respondents also said D&O premium rates and any insurance program cost changes over the past year were primarily driven by company financial performance (39%) and industry risk profile (37%). Meanwhile, less than 30% of company respondents felt that cost changes were due to insurance market competition, “suggesting that market competition in pricing is less of a factor than it has been the last few years.”