Since this year, the “enthusiasm” of listed companies to buy directors' liability insurance has once again picked up. According to the reporter's incomplete statistics, in the first three quarters of this year, a total of 314 listed companies announced plans to purchase directors' liability insurance, an increase of 53.2% over the previous year, already exceeding the number of listed companies planning to purchase directors' liability insurance for the whole of last year. The reason for this is that Xu Yuchen, a founding member of the China Association of Actuaries, said that this is mainly affected by two factors: on the one hand, in recent years, due to issues such as misrepresentation in information disclosure, etc., their directors and senior managers have increased the risks they may face in the course of business. Combined with the usually large amount of such compensation, the listed companies have the need to spread risk; on the other hand, the “Company Law of the People's Republic of China”, which came into effect in July this year, raised the potential risk of compensation for directors and supervisors due to improper performance of duties. Increased, and directors' liability insurance is a better way to mitigate risk.

Since this year, the “enthusiasm” of listed companies to buy directors' liability insurance has once again picked up. According to the reporter's incomplete statistics, in the first three quarters of this year, a total of 314 listed companies announced plans to purchase directors' liability insurance, an increase of 53.2% over the previous year, already exceeding the number of listed companies planning to purchase directors' liability insurance for the whole of last year. The reason for this is that Xu Yuchen, a founding member of the China Association of Actuaries, said that this is mainly affected by two factors: on the one hand, in recent years, due to issues such as misrepresentation in information disclosure, etc., their directors and senior managers have increased the risks they may face in the course of business. Combined with the usually large amount of such compensation, the listed companies have the need to spread risk; on the other hand, the “Company Law of the People's Republic of China”, which came into effect in July this year, raised the potential risk of compensation for directors and supervisors due to improper performance of duties. Increased, and directors' liability insurance is a better way to mitigate risk.