A survey of directors and officers has identified data loss, regulatory breaches and cyberattacks as the top risks facing the insurance and finance sectors.

A joint Willis and Clyde & Co report says 79% of respondents consider data loss a “very important” or “extremely important” risk to their companies.

Regulatory penalties and cyber risks rank equal second on 78%, while 70% rate sanction breaches and systems and controls issues as notable threats.  

The results differ slightly from those across all industries, which put health and safety first, followed by data loss, cyber threats and regulatory breaches.

Cybersecurity is the most common reason for obtaining directors’ and officers’ liability insurance, with 76% of insurance and financial sector respondents rating it important; 72% say widespread jurisdiction cover is important to their purchase, while 68% point to cover for fines.  

Among all respondents, 64% indemnify their D&O policies to the maximum extent, up from 62% last year, with 13% saying they would if approved by a shareholder vote.  

Cost is the key factor in the amount of coverage taken (58%), followed by perception of risk (48%) and broker advice (41%).  

Willis Pacific executive risks head Patrick Beckett says the results highlight the “breadth and weight of the challenges faced by directors and officers today. Increasing legislative reform, regulatory and shareholder scrutiny and individual accountability are driving companies and their leadership to prioritise holding the best possible protection, at an appropriate cost.  

“By integrating expertise, insight and analytics into D&O insurance programs, businesses can move forward with confidence.”