According to GDV figures, the number of claims in the area of manager liability insurance rose by almost seven percent to 2,200 in 2023. Benefits climbed by 9.4 percent to 216 million euros. The average amount of damage per case was 98,182 euros.
Premium income also grew by five percent to 458 million euros (based on the insurers participating in the study, whose market share is around 73 percent). However, they could soon be caught up in the development of claims. Because the GDV links the increasing D&O loss figures with the increase in corporate insolvencies in 2023. These would often result in high claims for damages from insolvency administrators against those responsible. A trend that continues. According to various statistics, the number of bankruptcies in this country rose by 25 to 30 percent in the first half of 2024 compared to the previous year.
Great potential
Another problem: Many managers or managing directors apparently have not yet set up functioning compliance systems in their companies. This would protect you from personal liability. A Forsa survey commissioned by GDV showed that around a quarter of the companies surveyed have not yet set up such a whistleblower system. This has been mandatory for companies with 50 or more employees since the end of 2023, based on the Whistleblower Protection Act. According to GDV projections, almost 19,000 medium-sized companies in Germany could be affected.
But even if more and more companies will soon be fulfilling their obligations here, it may be worthwhile for brokers to focus more on D&O. Apparently, significantly more companies are eligible as customers for manager liability policies than, as is sometimes assumed, just the large corporations.
