Australia is witnessing a significant rise in business insolvencies, (opens a new window) which has important ramifications for directors and officers (D&O) and the financial lines insurance sector.
This increase highlights the vulnerabilities present in the corporate landscape and emphasises the urgent need for robust D&O insurance policies to help safeguard business leaders against potential liabilities.
Rising insolvency rates in Australia
Recent data from the Australian Securities and Investments Commission (ASIC) indicates a sharp uptick in company insolvencies.
From 2023 to 2024, 7,742 businesses entered external administration, marking a 36.2% increase compared to the previous year.
Sectors such as construction, accommodation and…
