Core Viewpoint - The introduction of new regulations for the supervision of company secretaries is expected to enhance risk awareness and catalyze the demand for directors and officers liability insurance (D&O insurance) among listed companies in China [1][3]. Group 1: D&O Insurance Market Trends - As of the end of 2025, over 1,750 A-share listed companies are expected to disclose their D&O insurance purchase plans, reflecting a rapid increase in penetration rates [2][3]. - In 2025, 643 A-share listed companies announced their D&O insurance plans, marking a 19% increase from the previous year [2]. - The manufacturing sector leads in the number of new D&O insurance policies, particularly in the computer, communication, and other electronic equipment manufacturing industries [2]. Group 2: Regulatory Impact - The implementation of the new Securities Law and Company Law has significantly driven the rapid increase in D&O insurance penetration in the A-share market [3]. - The upcoming regulations for company secretaries are expected to clarify responsibilities and enhance risk awareness, further stimulating the demand for D&O insurance [3][6]. Group 3: Pricing and Market Dynamics - The average D&O insurance premium is currently below 0.5%, with actual rates potentially being even lower due to increased competition among insurers [4][5]. - Factors influencing D&O insurance pricing include industry environment, company size, and individual risk profiles, leading to significant variations in rates among different companies [4][5]. - The market is currently in a "soft cycle," characterized by an oversupply of insurance capacity, which is expected to change as more claims are reported [5]. Group 4: Future Development and Challenges - For the D&O insurance market to mature, it is essential to address issues such as market misconceptions, lack of transparency in claims data, and irrational pricing competition [5][6]. - Recommendations include establishing mandatory disclosure of D&O insurance details by listed companies to enhance governance and risk management [5][6]. - The industry must focus on improving underwriting and pricing capabilities while educating stakeholders about the true value and limitations of D&O insurance [6].

Group 1 - The core viewpoint of the news is that the demand for Directors and Officers Liability Insurance (D&O Insurance) among listed companies in China is increasing significantly, reflecting a growing recognition of its importance in risk management [1][2] - In 2025, 643 A-share listed companies announced their plans to purchase D&O Insurance, marking a 19% year-on-year increase, with 256 companies disclosing their plans for the first time [1] - By the end of 2025, the proportion of listed companies that purchased D&O Insurance increased by 4 percentage points compared to the end of 2024, indicating a sustained upward trend in adoption [1] Group 2 - The rise in D&O Insurance adoption is attributed to stricter regulations and an awakening of investor rights awareness, driven by the implementation of new securities and company laws, alongside an increase in administrative penalties and civil compensation cases for listed companies [2] - The demand for D&O Insurance is highly correlated with the litigation risks faced by companies and their executives, with state-owned and foreign enterprises showing higher levels of interest in purchasing such insurance [2] - The average premium rate for D&O Insurance has shown an overall upward trend from 0.3% in 2017 to 0.5% in 2022, but has started to decline since 2023, reaching below 0.5% by the fourth quarter of 2025 [3] Group 3 - The number of listed companies under investigation that have purchased D&O Insurance has increased significantly, reaching 173 companies by the end of 2025, which often triggers the insurance coverage for legal expenses related to regulatory investigations [3] - The D&O Insurance market is expected to continue growing, with an anticipated increase in the insurance purchase rate among A-share listed companies, particularly in the private and medium-sized enterprise sectors [4] - Short-term premium rates may remain low due to market competition, but a long-term rational upward trend is expected as more claims are exposed and risks become more apparent [4]