Willis flags geopolitical and AI risks as top D&O concerns

Geopolitics and artificial intelligence (AI) related risks top the list of concerns for directors and officers worldwide, according to Willis.

The broker’s latest “Directors and officers liability insurance survey”, conducted with Reed Smith, found that 59% of directors and officers now consider geopolitical risks very important or extremely important to their organisation.

Willis said that geopolitical risk has entered the top seven global risks for directors’ and officers’ liability (D&O), up from 15th place last year out of 30 risks surveyed.

AI has also moved higher up the risk agenda, with 56% of respondents globally ranking it as a very or extremely important risk, up five percentage points.

The concern is most pronounced in North America, where 71% of respondents cited AI as a very or extremely important risk for directors and officers.

Willis said the main AI-related concerns globally are AI-generated errors and misinformation, cited by 50% of respondents, AI-enabled fraud and social engineering, cited by 40%, and strategic failure to adopt AI, cited by 38%.

Only 55% of respondents said they believe their board members have the necessary skills and knowledge to provide effective oversight of AI implementation.

Angus Duncan, global directors and officers coverage specialist at Willis, said: “This year’s survey results confirm what we often hear from clients: corporate decision makers are facing an increasingly complex and layered risk environment.

“While traditional exposures such as regulatory compliance, health and safety issues and financial management remain front of mind, new risks are being added to the mix.

“Cyber threats, data loss and artificial intelligence have been named as top concerns across various industries and geographies, and for the first time so have geopolitical risks.”

Health and safety remains a leading concern, particularly in the industrial, transport and energy sectors, where between 82% and 89% of respondents cited it as a key risk.

Willis said organisations broadly believe their D&O insurance coverage is adequate, although confidence is stronger on scope than on financial limits.

Some 77% of respondents expressed confidence in the scope of their D&O cover, compared with 73% who were confident in their financial limits.

The survey also found that 62% of organisations indemnify their directors and officers to the fullest extent allowed by law, down slightly from 64% last year.

Supply chain and third-party risks remain central operational resilience concerns.

Willis said 39% of respondents identified increased risk exposure caused by third parties or supply chain constraints as their top operational resilience challenge.

Supply chain issues ranked among the top seven concerns for organisations in healthcare, industrial, energy and utilities, transportation and retail.

Climate change has fallen out of the top seven risk ranking in most regions.

Diversity, equity and inclusion has also dropped down the global risk agenda, with 52% of respondents describing it as very or extremely important, compared with 59% in 2025.

Duncan said that interconnected risks are making risk management and protection more important for boards.

“As risks become more interconnected and harder to predict, robust risk management and adequate protection are key to enable organisations to navigate uncertainty, make informed strategic decisions and sustain growth.

“In this context, a proactive and integrated approach to risk becomes a competitive advantage,” Duncan added.

The report can be downloaded here.