Core Viewpoint - The D&O insurance market in China is undergoing structural changes, with an increasing number of listed companies incorporating D&O insurance into their risk management practices, leading to a market penetration rate approaching 30% as of mid-July 2023, up from less than 8% in 2019 [1] Group 1: Market Trends - Over 300 A-share listed companies have disclosed D&O insurance plans as of July 2023, indicating a significant rise in adoption [1] - Ping An Property & Casualty reported nearly 1,000 inquiries for A-share D&O insurance in 2024, a year-on-year increase of 24.1% [2] - The new Company Law, effective July 2024, formally establishes the D&O insurance system, making it increasingly essential for companies [1] Group 2: Challenges and Issues - The current market lacks a comprehensive risk assessment mechanism, leading to significant pricing discrepancies and insufficient personalized coverage [2] - Many companies still misunderstand D&O insurance, viewing it as an additional cost rather than a necessary risk management tool [2] - The lack of continuous disclosure regarding coverage amounts, rates, and claims hinders market transparency and investor trust [3] Group 3: Future Outlook - There is a need for upgrading risk assessment methods in the A-share market, utilizing advanced technologies like machine learning for more precise evaluations [3] - Insurance companies are expanding their services beyond traditional coverage to include legal consulting, risk management training, and crisis management [4] - As regulations improve and companies become more aware of the benefits, D&O insurance is expected to play a more significant role in corporate governance in China [4]