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Key risk trends for Directors and Officers in 2025: insolvencies, geopolitical tension and “AI washing”: Allianz
- Increasing global insolvency levels heighten risks for executives.
- The febrile geopolitical landscape poses liability challenges for global corporations caught up in world events.
- “AI washing” is an emerging risk trend, leading to securities class action lawsuits.
- D&O market remains competitive but a step up in scrutiny of corporate conduct around the globe means loss potential is still high.
SINGAPORE – Media OutReach Newswire – 5 December 2024 – Directors and Officers (D&Os) have been operating in a highly complex environment throughout 2024, and further volatility can be expected during 2025. Executives face multiple exposures in an increasingly interconnected business world, confronted with risks arising from business insolvencies, geopolitical upheaval, climate change, digital transformation, economic uncertainty, shifts in public opinion, and an evolving legal landscape. These are the latest key risk trends in the D&O insurance space, as identified by Allianz Commercial’s annual Directors and Officers Insurance Insights report.
“The D&O insurance market has remained competitive for buyers over the past year, but loss potential is still high,” says Vanessa Maxwell, Chief Underwriting Officer, Allianz Commercial. “The global rise in business insolvencies is a particular focus of concern, with companies and leaders exposed to potential claims from lenders seeking to recover funds, or from shareholders who allege breach of fiduciary duty. At the same time, the litigation landscape and enforcement are increasingly stringent, and we are seeing regulatory bodies across the globe step up scrutiny of corporate conduct, making D&Os more vulnerable to investigations, penalties and lawsuits.”
Insolvencies as an emerging D&O risk
Global business insolvencies for 2024 are expected to rise by +11%, and countries accounting for more than half of global GDP will be hit by double-digit insolvency increases in 2024, according to Allianz Trade. Major insolvencies already increased by +26% year-on-year for the first three quarters of 2024 (344 cases). Western Europe leads the global count with 195 cases, a reflection of the region’s current economic instability, followed by Asia-Pacific (67 cases) and North America (66 cases). Rising bankruptcies typically lead to an increase in D&O claims, so this trend is a reminder to business leaders of the need to respond and adapt to the challenging environment.
“Many companies have faced higher interest expenses, inflationary pressures, and macro- and microeconomic headwinds that have impacted their business and resulted in a struggle to service their debt load,” says Dan Holloway, Head of Global Management Liability Commercial at Allianz Commercial. “Some sectors are particularly exposed, including real estate, construction, hospitality, tourism, and businesses in ‘consumer discretionary’, or non-essential purchases.”
Turbulent geopolitical environment and stringent litigation landscape
With war in Ukraine and the Middle East, the geopolitical landscape presents liability challenges to businesses as they find themselves caught up in world events with potentially significant consequences for their operations. Upheaval can lead to supply chain disruption, business interruption, and legal and regulatory scrutiny. Companies can face scrutiny for non-compliance with international sanctions, or for failing to adequately manage risks related to politically unstable regions. D&Os can be held accountable for misjudging the impact of geopolitical developments on their company’s operations, leading to shareholder lawsuits or regulatory penalties. At the same time, the litigation landscape and enforcement are increasingly stringent, with securities class actions proliferating not only in the US, but also in Europe (+10% year-on-year) and Australia (+43%).
“D&Os need to update their knowledge around geopolitical and regulatory changes more regularly than ever before,” says Jarrod Schlesinger, Global Head of Financial Lines and Cyber at Allianz Commercial. “A once-a-year review is no longer sufficient in the volatile era businesses are now operating in. These trends are driving the need for D&O policies that are responsive to multi-jurisdictional risks and can provide local coverage for legal defense costs, settlements and other liabilities.”
“AI washing” – the new “greenwashing”?
The transformative potential of artificial intelligence (AI) is huge, but it also means companies must adapt quickly to potential exposures around disclosure, regulation, shareholder scrutiny and litigation. AI-related litigation is increasing and exaggerated claims about firms’ technological capabilities – a trend known as “AI washing” – could lead to securities class action lawsuits and enforcement actions. Class action lawsuits have already been filed in the US, but the risk extends beyond North America, as any company that has its stock listed on a US exchange is subject to US securities law.
Third-party litigation funding a growing exposure
The global litigation funding industry is projected to grow rapidly in the coming years –by almost 10% CAGR up to 2028 – widening access to justice, but also potentially driving up the number of class actions and settlement costs and damages, as also highlighted in Allianz Commercial’s Five Liability Loss Trends To Watch report. And it is not only confined to the US – third-party litigation funding is also established in the UK, Netherlands, Germany, and Australia.
“D&Os will face increasing scrutiny from third parties ready to jump on cases and fund them. Claims are likely to become more complex because of funders’ aggressive litigation strategies and the experts they can afford to hire,” says Schlesinger. “Plaintiffs with little to lose financially could be tempted to make baseless claims. Even if the case doesn’t have legs, directors still have to defend it.”
Challenges persist in Asia D&O market
The price-driven Asia D&O market has experienced a drop in overall premium rates during 2024, due to factors including high competition from an abundance of capacity globally, and challenging economic environments resulting in some clients reducing limits purchased to save costs.
“We foresee the overall market size for D&O in 2025 will continue to retract, driven by rate erosion, smaller limits being purchased by customers, and very limited new opportunities given slow capital market activities. Despite this, D&O insurance remains crucial for companies due to the multiple exposures executives face, and as loss potential increases with higher severity for claims being resolved,” says Danielle An, Regional Practice Leader, Management Liability Commercial, Asia, at Allianz Commercial.
Hashtag: #Allianz
https://commercial.allianz.com/
financial strength, and network of the world’s #1 insurance brand, as ranked by Interbrand, we work together to help our customers prepare for what’s ahead: They trust us to provide a wide range of traditional and alternative risk transfer solutions, outstanding risk consulting and Multinational services, as well as seamless claims handling. The trade name Allianz Commercial brings together the large corporate insurance business of Allianz Global Corporate & Specialty (AGCS) and the commercial insurance business of national Allianz Property & Casualty entities serving mid-sized companies. We are present in over 200 countries and territories either through our own teams or the Allianz Group network and partners. In 2023, the integrated business of Allianz Commercial generated more than €18 billion gross premium globally.
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UU Wallet Secures U.S. MSB License, Embarking on a New Chapter of Global Compliance with Security at Its Core
Security and Compliance: Driving Global Strategy
The U.S. MSB license, issued by the Financial Crimes Enforcement Network (FinCEN) under the Department of the Treasury, is a critical entry requirement for international financial institutions to provide monetary services. Passing the license audit indicates that UU Wallet has met stringent U.S. regulatory standards in areas such as anti-money laundering (AML), risk control systems, and user asset protection.
Since its establishment in 2023, UU Wallet has rapidly grown into a Web3 payment ecosystem covering over 160 countries and regions, thanks to its technological innovation and commitment to security. With a team of over 100 professionals, UU Wallet focuses on four core businesses: digital currency and fiat exchange, prepaid cards, enterprise wallet services, and Web3 wealth management. Its daily transaction volume has surpassed $20 million.
Four Core Features Redefining Secure Payment Experiences
Instant Fiat Exchange, Secure and Frictionless
UU Wallet supports instant conversions between mainstream fiat currencies such as the Philippine Peso (PHP), South Korean Won (KRW), Japanese Yen (JPY), US Dollar (USD), Hong Kong Dollar (HKD), and Malaysian Ringgit (MYR), and digital currencies. Utilizing intelligent routing and multi-signature cold wallet technology, users can complete cross-border fund transfers within 5 seconds, with end-to-end data encryption and a zero-risk incident record.
Global Prepaid Cards: USDT Real-Time Circulation, Balancing KYC Efficiency and Security
Users can instantly recharge prepaid cards with USDT, which are accepted in over 160 countries and regions for both online and offline purchases. The platform supports both virtual and physical cards, as well as B2B client integration. UU Wallet’s unique “tiered KYC” mechanism allows basic consumption scenarios to complete identity verification in just 3 minutes, while larger transactions are secured through dynamic facial recognition and blockchain address tracking, striking a balance between convenience and security.
Enterprise Wallet Services: Comprehensive Fund Protection
For Web3 enterprises, UU Wallet offers payment and fund management solutions covering 50+ public chains and 10,000+ tokens. Through secure multi-party computation (MPC) technology, real-time risk warning systems, and monthly third-party audits, UU Wallet ensures transparent and traceable fund flows, mitigating risks of operational errors and hacker attacks.
Web3 Asset Wealth Management: Balancing Returns and Risk Control
The platform provides a variety of value-added services, including flexible staking, structured products, and compliant stablecoin wealth management. All products are executed automatically via smart contracts, with code security verified by top-tier auditing firms. Historical annualized returns range from 3% to 15%, ensuring users’ assets grow steadily and securely.
“Security is the lifeline of financial services,” said a UU Wallet spokesperson. “With the MSB license, we will accelerate collaboration with global regulators and traditional financial institutions, driving deeper integration of Web3 payments with mainstream economic systems.”
Hashtag: #UUWallet
The issuer is solely responsible for the content of this announcement.
About UU Wallet
UU Wallet is a security-focused Web3 payment infrastructure provider dedicated to lowering the barriers to digital asset usage through technological innovation. The company has obtained financial licenses in the United States and the Philippines, serving over 500,000 individual users and 2,000 enterprises with a zero-security-incident record.
About Followme
Followme is an open community trading platform where traders and investors worldwide share experiences, exchange ideas, and publish trading strategies in real-time. Their real accounts have been connected to more than 4,300 brokers worldwide via Followme. Users who join as followers can get help from the information posted to enhance their advantages in trading. To date, more than 900,000 users worldwide have joined Followme.
A Commitment to Excellence
KVB’s achievement is a testament to its unwavering commitment to providing traders with an unparalleled trading experience. The company stands out for its dedicated customer support, ensuring that clients receive timely assistance and expert guidance whenever needed.
In addition, KVB offers a versatile platform for traders of all levels. Whether using Actstrade, its advanced desktop platform, or the KVB App for mobile trading, clients benefit from powerful tools, intuitive interfaces, and real-time market insights. KVB also offers some of the lowest spreads in the industry, creating optimal trading conditions for both new and experienced traders. Combining low-cost trading with a feature-rich platform and exceptional customer service, KVB remains a top choice for traders worldwide.
2025 and Beyond
Looking ahead to 2025, KVB is set to expand its reach into new markets, bringing its top-tier trading services to a broader global audience. With a strong commitment to continuous improvement, the company is also focused on enhancing its systems, ensuring a more seamless, efficient, and secure experience for traders.
In addition, KVB plans to launch exciting new promotions, providing traders with greater value and incentives while enhancing its customer service program with faster response times and more personalized support. With these initiatives, KVB aims to deliver an even better trading experience and strengthen its global presence in 2025.
For more information, please visit www.kvbplus.com.
Hashtag: #KVB
The issuer is solely responsible for the content of this announcement.
The 2025 QS World University Rankings by Subject rated six local degree courses among the world’s top 10, up from three last year, while 68% of 231 programmes from nine Hong Kong institutions rose in the rankings.
In the field of data science and artificial intelligence (AI), five Hong Kong universities are ranked among the world’s top 50, the highest number in Asia and second-highest globally.
This demonstrates the city’s immense potential and competitiveness in technological innovation, providing crucial support for the city’s future economic transformation and upgrading. The Government has also rolled out various supportive policies and initiatives to attract talent and businesses to Hong Kong to participate in driving related products to market and engaging in innovation.
The surge up of Hong Kong’s rankings was contributed by the comprehensive three-pronged approach involving the HKSAR Government, the efforts by universities in teaching and research, as well as social resource collaboration.
The leap up the rankings also further enhanced the “Study in Hong Kong” brand, helping world-leading academic disciplines in the city attract top-tier students for advanced studies.
“The Education Bureau will also continue to collaborate with institutions to attract more students from around the world to build Hong Kong into an international hub for high-calibre talent,” said Secretary for Education Dr Choi Yuk-lin.
According to the QS release, about 80% of subjects of the city’s universities had shown improvement in academic reputation, with significant progress across most indicators. This highlighted Hong Kong’s continued leadership in the field of higher education, serving as a global model of success.
This year’s ranking compared over 21,000 academic offerings, taken by students at more than 1,700 universities across 100 countries and territories in 55 subjects.
Hashtag: #hongkong #brandhongkong #asiasworldcity #QS #Talents
https://www.brandhk.gov.hk/
https://www.linkedin.com/company/brand-hong-kong/
https://x.com/Brand_HK/
https://www.facebook.com/brandhk.isd
https://www.instagram.com/brandhongkong
The issuer is solely responsible for the content of this announcement.
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