Increasing class actions against companies and their boards are continuing to add pressure to directors’ and officers’ (D&O) insurance.

A report by law firm Mallesons Stephen Jacques says the continuing increase in class action cases and regulatory changes are key concerns for directors.

More than 125 directors from about 300 companies took part in the online survey.

Mallesons partner Meredith Paynter says as the global financial crisis recedes boards and directors are facing more challenges than ever before.

“Australian directors are in the firing line,” she said. “Increasing red tape, the risk of personal liability and the ‘gap’ between what is expected of directors and what they actually do are some of the key challenges they currently face.”

Vero Head of Casualty Alex Green says there is now much more awareness surrounding D&O cover thanks to an increase in class action lawsuits.

He told insuranceNEWS.com.au that four or five of the top 100 companies in Australia have been involved in class actions and increases could lead to pressure on pricing the product.

But he says the biggest issue facing directors and officers should actually be making sure they have enough cover.

Ms Paynter says directors “are having to turn their minds to addressing actual or potential class actions”.

She says this could lead to qualified people opting out of directorship roles.