17 April 2023Analysis

Marsh opens Asian D&O options

Marsh has announced that companies in Asia can now be considered for preferred directors and officers (D&O) liability insurance policy terms and conditions, based on the strength of their environmental, social, and governance (ESG) risk frameworks.

On completion of Marsh’s ESG Risk Rating or another approved third party rating methodology – and subject to their risk score meeting minimum underwriting criteria – insurers on Marsh’s panel will consider Marsh clients based in Asia for preferred D&O policy terms and conditions on their ESG-related exposures.

Launched globally in March 2022, Marsh’s Asian clients can also use the results of the ESG Risk Rating to identify their most critical sustainability and climate-related risks and opportunities to further develop their ESG strategies.

“As clients transition to a lower-carbon economy, robust frameworks that assess businesses’ ESG commitments, actions and performance will increasingly be required,” said Marshall Lee, head of climate & sustainability strategy, Marsh Asia. “Prior to the launch of Marsh’s ESG Risk Rating, the lack of standardised ESG disclosure obligations and the resulting data gaps made this evaluation challenging in Asia. We are pleased that Marsh’s clients in Asia can now be rewarded for their efforts in managing the liability risks associated with ESG-related exposures, a key risk covered in D&O insurance.”

Sharanjit Chaggar, D&O practice leader, Marsh Specialty Asia, added: “The risk of claims arising from ESG-related issues such as breach of duty, disclosure obligations, and misleading statements is a growing concern for directors and company boards in Asia. Marsh's collaboration with our panel insurers in Asia is a key step in recognising – and rewarding – the increasingly prominent role robust ESG risk management plays in evaluating D&O liability risk profiles.”