Demand for D&O insurance covers in India is growing at 25%-35% and is driven by greater board accountability, investor pressure and regulatory interventions. According to data collated and analysed by Policybazaar Business there is a clear shift from compliance-driven purchases to proactive risk management - boards now view D&O coverage as essential, not optional.
The analysis of the collated data reveals that around 85% of the D&O policyholders have renewed their insurance policies. This high renewal rate reflects sustained confidence in the value of D&O coverage as a core risk management tool.
The policy discontinuation remains minimal, with non-renewals primarily linked to changes such as mergers and acquisitions, shifts in shareholding patterns or company closures.
A few other noteworthy trends observed were:
i. D&O policy uptake and coverage limits are rising among IPO-bound companies.
ii. ESG failures (e.g., environmental negligence, DEI lawsuits) and cyber security lapses are emerging as key drivers of D&O exposure.
The analysis found that between 10% – 15% of D&O policyholders have reported claims, highlighting the real-world implications of leadership liability. The major reason for the claim trigger are:
• Alleged breach of fiduciary duty
• Litigation costs
• Regulatory investigations
• PR and crisis management
Also, more businesses are opting for non-rescindable side A-only excess policies, especially for independent directors, offering broader protection in cases of insolvency or lack of indemnification.
It was also observed that directors are increasingly requesting D&O policy reviews before accepting board positions, reflecting heightened caution around personal liability.
Policybazaar for Business head of liability insurance Evaa Saiwal said, “It is clear that the business landscape is undergoing a significant transformation. What once started as a compliance-driven necessity has now evolved into a cornerstone of proactive risk management.
“As IPO-bound companies embrace D&O coverage more than ever, we are witnessing a surge in its value—a direct response to the growing prominence of board accountability and the very real threat of leadership liability in today’s fast-paced, litigious environment."