London, UK (Oct.24, 2024) – Beazley, the leading specialist insurer, is pleased to announce it has published the first insights from its latest Risk & Resilience report: Spotlight on Boardroom Risk 2024.The report explores the risk concerns of 3,500 global business leaders in today’s era of accelerating risk, where a single misstep can have significant financial, legal and reputational consequences for a firm and its directors – no matter what size or sector it operates in.

Employer risk In an age of hybrid working, shifting workplace cultures, and a growing focus on misconduct, nearly a quarter (23%) of global executives believe that employer risk is the biggest threat they face this year, up from 18% in 2022.But, nearly a quarter (24%) feel unprepared to deal with this risk.Ambition to increase diversity and inclusion in global firms is highlighted by the report, with 26% of the executives surveyed saying that they plan to review hiring and retention policies to boost diversity and inclusion in the workplace.

Reputation risk Concern among executives around reputation risk is also growing.In an increasingly interconnected world, businesses face scrutiny from a host of stakeholders, including shareholders, regulators, the media and the general public.Executives are under the microscope like never before.

A fifth (20%) of global executives cited reputational damage, the risk of directors damaging brand value and customer trust, as their top business risk, up from 17% in 2023.This rises to 25% among executives in the financial and professional services industry.ESG risk The raft of ESG regulation across the globe is impacting businesses and their ability to operate in numerous jurisdictions.

Our data shows that 67% of global executives believe that ESG regulation is too complex, while 70% want more guidance from regulators.With competing regulations in different jurisdictions, executives are left to decide which rules to comply with and how much risk they are willing to carry.Anti-trust rules around ESG in a number of US states creates new challenges from a directors’ and officers’ (D&O) liability perspective.

And, as a result, some firms and investment funds are rolling back on public commitments around ESG.Bethany Greenwood, CEO of Beazley Furlonge Ltd and Global Head of Specialty Risks, Beazley said: “While macroeconomic conditions appear to be stabilizing, D&O risks are still front of mind for global business leaders.In the event of a company filing for bankruptcy, D&O litigation can quickly follow for executives.

Amid persistent inflation and the ongoing threat of recession, this has been a key threat in recent years.At the same time, businesses and their executives are feeling the heat, with D&O liability extending beyond the realms of financial performance, with litigation now being brought against executives following cyberattacks, supply chain disruption and employment-related issues.Failure to comply with ESG regulation has proven another key flashpoint for D&O risk.

Our latest report highlights how the threat landscape has fragmented and become increasingly multifaceted with executives left scrambling to protect themselves.Understanding the risks and enhancing resilience has never been more important.” View the first section of the Spotlight on Boardroom Risk report.About the Risk & Resilience research During January 2024, 3,500 business leaders and insurance buyers of businesses with international operations based in the UK, US, Canada, Singapore, France, Germany and Spain were asked about their views on insurers and insurance, as well risk and resilience concerns across four categories of risk: Of the firms surveyed there was a split across company sizes in each territory of: US$/CA$/SG$/GB£/EUR€ – 250,000 – 999,999 / 1m – 9.99m / 10m – 99.99m / 100m – 999.99m /1 billion plus.

With a minimum of 50 respondents per country per industry sector, respondents represented businesses operating in: This year’s survey was undertaken between 05.01.24 and 1517.01.24.In 2021 the survey was undertaken with respondents based in the UK and US only.In 2022 and 2023, the sample base also included respondents based in Canada and Singapore, and in 2024 the sample base was expanded to include respondents in France, Germany and Spain.

About Beazley Beazley plc (BEZ.L) is the parent company of specialist insurance businesses with operations in Europe, United States, Canada, Latin America and Asia.Beazley manages seven Lloyd’s syndicates and, in 2023, underwrote gross premiums worldwide of $5,601.4 million.All Lloyd’s syndicates are rated ‘A’ by A.M.

Best.Beazley’s underwriters in the United States focus on writing a range of specialist insurance products.In the admitted market, coverage is provided by Beazley Insurance Company, Inc., an A.M.

Best A rated carrier licensed in all 50 states.In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.Beazley’s European insurance company, Beazley Insurance dac, is regulated by the Central Bank of Ireland and is A rated by A.M.

Best and A+ by Fitch.Beazley is a market leader in many of its chosen lines, which include professional indemnity, cyber, property, marine, reinsurance, accident and life, and political risks and contingency business.For more information, please visit www.beazley.com.

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