Recent data released by the Superintendence of Private Insurance (Susep) shows an increase in demand for the so-called D&O (Directors and Officers) insurance. The growth was 25% when comparing the years 2020 and 2021, with an increase in the collection from BRL969 million to BRL1.290 billion the following year.

In fact, this is a global trend. A report published by the consultancy Next Move Strategy identified that the global D&O insurance market generated USD 21.70 billion in 2020, and is expected to reach USD 53.76 billion by 2030, registering a Compound Annual Growth Rate (CAGR) of 11.7% from 2021 to 2030.

What is the reason for this increase? One of the hypotheses, and perhaps the strongest, is the entry into force of the Brazilian General Data Protection Regulation (GDPR), which regulates the treatment of personal data. It is worth mentioning that fines for violations of the law are already being applied to the companies that have incurred in the misuse and leakage of personal data, for example. 

Among other things, GDPR provides for a fine of up to 2% (two percent) of the turnover of the private legal entity, group, or conglomerate in Brazil in its last fiscal year, excluding taxes, limited to a total of BRL 50,000,000.00 (fifty million reais) per violation. The potential financial damage for companies that incur in acts against the law can ruin a business. It is in this context that taking out D&O insurance comes in handy.