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The following content was first published in Commercial Risk on 25 September 2025.
The annual GVNW Symposium in Munich revealed a German corporate risk landscape in rapid transformation. Regulatory frameworks are tightening, cyber threats are intensifying and companies face increasing challenges that demand sophisticated risk management solutions.
Directors face unprecedented liability in Germany’s new regulatory era
Germany’s evolving risk environment is fundamentally transforming corporate approaches to D&O liability coverage, with organisations reassessing whether to expand limits or broaden coverage. The regulatory environment has become particularly demanding around ESG reporting, with board members now facing an expanded set of responsibilities and finding themselves accountable beyond traditional business decisions.
“Companies are not only facing increased risk exposure due to enhanced regulatory requirements; trade disputes and export barriers between the US and Europe, along with ongoing wars and geopolitical conflicts, are contributing to a highly stressed economic environment,” explains Sebastian Gemberg-Wiesike, Financial Lines Manager for Germany and Austria at TMHCC.
These pressures prove especially challenging for German companies with international operations that must navigate intricate global regulatory landscapes. Instead of expanding protection, however, many clients have responded by maintaining existing coverage, owing to tight budgets. This cautious approach underscores the critical importance of comprehensive D&O coverage designed to address both traditional governance risks and emerging regulatory exposures.
Cyber insurance: Finding stability while threats intensify
For Germany’s cyber insurance market, while market conditions have slightly stabilised, the threat landscape remains daunting. “Insureds with strong controls may access higher limits, while minimum cyber security standards to access insurance capacity have been effectively set across the market,” says Enzo Aguilera, Cyber Manager for CEE & Middle East at TMHCC.
Recent EU legislation – the DORA Act and the NIS2 Directive – is a major catalyst for the shift to a more standardised approach. NIS2 is expected to expand the cyber insurance market significantly by bringing roughly 29,000 additional companies into scope, spurring increased cybersecurity investment, as newly regulated entities seek compliance.
Intellectual property insurance (IPI): Protecting innovation assets
Beyond digital threats, Germany’s innovation-driven economy faces increasingly sophisticated intellectual property risks and a complex array of exposures for directors and officers, creating new opportunities in specialised insurance markets.
“With IP insurance, we are dealing with a complex cross-border risk that can entail six-figure litigation costs, so it is crucial for companies that rely on their IP to operate to get expert advice and tailored coverage to make sure their strategic assets have optimal protection,” commented Birgit Rummel, TRI Manager and IP Lead at TMHCC.
Transaction risk insurance (TRI): Supporting Germany’s M&A evolution
For Germany’s M&A activity, while the market has slowed due to economic and geopolitical pressures, major investments in sectors such as healthcare, energy, defence and AI are expected to drive future deal activity. Government support, a solid pipeline of succession and private equity exits, and strong inbound and outbound interest, particularly from North America, further reinforce the positive outlook for 2025/26, supported by stabilising inflation and improved debt market confidence.
German mid-market companies remain particularly active in cross-border M&A, using outbound strategies to diversify, scale and access innovation. This activity is supported by an expanding TRI market, with tax risk insurance in high demand. Claims activity is rising and confidence in the product continues to grow as more claims are paid.
Opportunities amid challenging conditions
Regulatory expansion and market stabilisation are creating significant opportunities that persist even as companies maintain disciplined spending amid economic uncertainty.
Global insurers with strong financial ratings like TMHCC are strategically positioned to capture this regulatory-driven demand while keeping underwriting standards tight. The market’s focus on robust cybersecurity controls as a capacity requirement ensures expansion is built on solid risk management – not just compliance checkboxes.
And success requires deep expertise in regulatory requirements – a critical differentiator is local market presence. Understanding the regulatory landscape is essential, but it’s equally important to be present in the market with claims experts who possess deep local expertise and can navigate cultural nuances.
Insurers that can show they are there for their clients, while balancing aggressive capacity provision with rigorous risk assessment, against a challenging economic environment, will capture the greatest opportunity.
Written by Sebastian Gemberg-Wiesike, Financial Lines Manager – Germany & Austria, Tokio Marine HCC; Enzo Aguilera, Cyber Manager – CEE & Middle East, Tokio Marine HCC; and Birgit Rummel, TRI Manager and IP Lead, Tokio Marine HCC.
