This year, A-share listed companies have continued to purchase directors' and officers' liability insurance. According to a review by the Securities Daily, in the first three quarters of this year, 434 listed companies have announced their D&O insurance procurement plans, representing a year-over-year increase of 28%.
Experts say the rising number of listed companies planning to purchase D&O insurance is driven by increased履职 risks for directors and senior executives, lower D&O premiums, and stronger compliance and disclosure requirements.
Directors' and officers' (D&O) liability insurance protects directors, officers, and senior executives of publicly listed companies from legal costs and other civil liabilities arising from negligence or misconduct in the course of their duties.
In recent years, the number of listed companies planning to purchase D&O insurance has shown steady growth. According to the "China Listed Company Directors' and Officers' Liability Insurance Market Report (2026)" jointly released by Shanghai Jianwei Law Firm, Xianlv Technology (Beijing) Co., Ltd., and Mingya Insurance Brokerage Co., Ltd., 643 A-share listed companies announced their plans to purchase D&O insurance in 2025, representing a year-over-year increase of 19%.
Wang Min, a partner at Shanghai Jianwei Law Firm, told The Securities Daily that the year-over-year increase in the number of listed companies planning to purchase D&O insurance in the first three quarters indicates that D&O insurance is evolving from an optional coverage for high-market-cap and high-risk firms to a standard requirement for more companies.
Wang Min noted that the increase in listed companies planning to purchase D&O insurance stems from three factors: First, on the risk side, the normalization of representative litigation and heightened responsibilities for independent directors have significantly elevated履职 risks for directors and senior executives.
Second, on the cost side: directors and officers (D&O) insurance premiums have declined steadily in recent years, allowing you to secure higher coverage limits within the same budget.
Third, at the governance level, growing demand from listed companies to enhance compliance and ESG (environmental, social, and governance) disclosures has led to wider adoption of directors' and officers' liability insurance as a governance tool.
As the directors' and officers' liability insurance market continues to grow, claim cases have increased year over year. In 5, Guangdong Guangzhou Daily Media Co., Ltd. (hereinafter referred to as "Yue Media") announced that it had previously purchased liability insurance from an insurer. Following a securities misrepresentation lawsuit triggered by its acquisition of Shanghai XieXie Advertising & Media Co., Ltd., Yue Media filed a claim with the insurer. The company received insurance proceeds totaling 1894.61 million yuan. This marks the first publicly disclosed D&O insurance payout in China's A-share market related to fraud during a merger or acquisition.
Looking ahead, regarding the development trends of D&O insurance, Wang Min stated that products will evolve from mere availability to adequacy of coverage and smoothness of claims settlement. He forecasts five key changes: first, broader product coverage extending from large-cap and blue-chip companies down to small- and mid-cap firms.
Second, increased coverage with most policies upgraded to 1 billion yuan or more.
Third, the product is more professional, customized based on industry risk characteristics and extended to scenarios such as pre-IPO and M&A.
Fourth, claims management is moving to the forefront. As securities class actions become routine, defense costs and civil compensation will become key indicators of policy value.
Fifth, as the market develops, domestic underwriting may increasingly rely on international reinsurance. Amidst accumulating risks, product premiums could hit a floor and begin to rise.
