Directors’ and officers’ liability insurance and firm greenwashing: Supervision or opportunism?

Tuberculosis (TB) remains a major public health challenge in Indonesia and generates significant mortality-related risk for the life insurance sector. This study develops an integrated Susceptible–Infected–Recovered–Deceased (SIRD) model to analyze TB transmission dynamics in Southeast Sulawesi and to estimate related life insurance claims. The model is calibrated using regional TB data from 2021–2023 and validated against 2024 observations. Analytical results include equilibrium analysis and the basic reproduction number, while long-term dynamics are examined through scenario-based simulations. Epidemiological outcomes are translated into actuarial projections by converting cumulative TB-related deaths into annual incremental deaths and expected insurance claims under optimistic, baseline, and pessimistic scenarios. Parameter sensitivity is assessed using Latin Hypercube Sampling and Partial Rank Correlation Coefficients. The results show that the transmission rate is the most influential determinant of the present value of TB-related insurance claims, followed by the recovery rate, whereas TB-induced mortality has a smaller but significant effect. These findings highlight that reducing transmission and improving treatment effectiveness can simultaneously mitigate public health impacts and lower long-term insurance liabilities, demonstrating the relevance of integrating epidemiological modeling with actuarial risk assessment.

Teleradiology has evolved into an integral component of radiological care. Among approximately 1900 hospitals in Germany, only around 650 maintain their own radiological departments; patient care is increasingly provided through cooperative arrangements incorporating teleradiological expertise. However, the spatial separation between image acquisition and diagnostic interpretation presents specific liability-related challenges. This article examines the central liability risks in teleradiology and provides concrete recommendations for everyday radiological practice. The aim is to protect physicians from legal consequences and to guarantee the quality of patient care. The legal foundations are based on §§630a et seq. of the German Civil Code (BGB). Teleradiologists are subject to the same specialist standard as colleagues working on-site. Specific risks include technical transmission problems, time-critical emergencies, and organizational liability issues. Recommendations include adherence to technical standards (Digital Imaging and Communications in Medicine, DICOM), virtual private network (VPN) encryption, quality assurance prior to interpretation, redundant data transmission pathways, written cooperation agreements, and emergency protocols. Professional liability insurance must explicitly cover teleradiological activities. Legal jurisprudence has not yet provided definitive answers, particularly regarding technical transmission errors. Quality assurance, documentation, and clear allocation of responsibilities are central to avoiding liability. For cross-border activities, the territorial scope of insurance coverage must be verified. Furthermore, regular review of insurance coverage is recommended.

Variable annuities (VAs) are long-term insurance contracts that offer guaranteed minimum benefits for the purpose of retirement planning. The valuation of VA attracts increasing attention over the past decade. In this paper, we propose a dynamic drawdown-dependent fee structure for VA, under which fees are charged only when the underlying fund experiences a drawdown from its running maximum, that is, when the embedded guarantees are most likely to be exercised. By reducing the fee when the guarantee has little value, our fee design aligns fee collection with periods of policyholder's needs for guarantee and insurer's liability, as well as helps to reduce the policyholder's surrender incentive. Under this framework, we derive analytical expressions for the contract value of GMDB, which further allows the valuation for GMMB via a numerical approach. To illustrate the merit of the proposed fee structure, we analyze its impact on policyholder surrender incentives through a comparison with the constant fee structure. Numerical examples and sensitivity analysis are provided to illustrate our results.

The world has been witnessing a growing and accelerating expansion in the use of artificial intelligence (AI) systems, as leading worldwide technology businesses compete to develop systems and software that can simulate the human mind, produce technological solutions, and accomplish activities that previously needed human mental effort. This has given rise to a host of new and unfamiliar legal challenges, including those connected to errors and ‘hallucinations’ that may produce inaccurate or misleading outputs. This paper examines the technical and practical risks associated with the use of AI, with a focus on the phenomenon of hallucinations that has recently become widely discussed, and its potential effects on users and third parties. This study adopts a comparative, analytical legal approach by analyzing the current legal framework to determine the extent to which the law protects the injured party, assessing the adequacy of existing civil-liability rules, and emphasizing the difficulties associated with proving fault and causation, as well as identifying the responsible party within the complex smart-transactions ecosystems. Accordingly, the objective of this paper is to determine how civil liability arising from the use of AI systems in numerous fields may be attributed, and to identify the future legal implications of such systems in light of the general rules of the UAE Civil Transactions Law and the substance of the EU regulation. Accordingly, the study presents a contemporary legal perspective on conventional culpability to safeguard the harmed person against AI faults and hallucinations. It concludes by proposing innovative legal mechanisms, such as strict (objective) liability, transparency obligations, and compulsory insurance, to compensate the injured party for ‘digital harm’ caused by AI technologies. The research indicates that legal responsibility and technical innovation must be balanced to safeguard the damaged party.

The world has been witnessing a growing and accelerating expansion in the use of artificial intelligence (AI) systems, as leading worldwide technology businesses compete to develop systems and software that can simulate the human mind, produce technological solutions, and accomplish activities that previously needed human mental effort. This has given rise to a host of new and unfamiliar legal challenges, including those connected to errors and 'hallucinations' that may produce inaccurate or misleading outputs. This paper examines the technical and practical risks associated with the use of AI, with a focus on the phenomenon of hallucinations that has recently become widely discussed, and its potential effects on users and third parties. This study adopts a comparative, analytical legal approach by analyzing the current legal framework to determine the extent to which the law protects the injured party, assessing the adequacy of existing civil-liability rules, and emphasizing the difficulties associated with proving fault and causation, as well as identifying the responsible party within the complex smart-transactions ecosystems. Accordingly, the objective of this paper is to determine how civil liability arising from the use of AI systems in numerous fields may be attributed, and to identify the future legal implications of such systems in light of the general rules of the UAE Civil Transactions Law and the substance of the EU regulation. Accordingly, the study presents a contemporary legal perspective on conventional culpability to safeguard the harmed person against AI faults and hallucinations. It concludes by proposing innovative legal mechanisms, such as strict (objective) liability, transparency obligations, and compulsory insurance, to compensate the injured party for 'digital harm' caused by AI technologies. The research indicates that legal responsibility and technical innovation must be balanced to safeguard the damaged party.

Introduction The rapid expansion of electronic banking has significantly increased exposure to cyber risks, including phishing attacks and unauthorized electronic payment transactions. These developments raise complex legal questions concerning civil liability, loss allocation, and compensation mechanisms, particularly within legal systems that lack specialized regulatory frameworks. Methods This study employs a doctrinal and comparative legal methodology. It analyzes the applicable provisions of Jordanian civil, commercial, and banking law, alongside relevant regulatory instruments, and compares them with selected foreign legal frameworks, including European payment services regulation, South African jurisprudence, and U.S. consumer protection laws governing electronic fund transfers. Results The findings reveal that Jordanian law relies primarily on general fault-based liability principles under the Civil Code and Commercial Code, without establishing a specific legal regime for unauthorized electronic transactions. This approach imposes a substantial evidentiary burden on customers, despite banks' superior technical control over digital payment systems. In contrast, comparative legal systems increasingly adopt risk-based or hybrid liability models that favor consumer protection and institutional responsibility. The analysis further demonstrates that cyber insurance, while recognized internationally as a key mechanism for risk allocation and compensation, remains underdeveloped and insufficiently integrated into the Jordanian legal and regulatory framework. Discussion The study concludes that the current Jordanian legal framework is inadequate to address the systemic risks associated with electronic banking. It proposes the introduction of a statutory regime governing unauthorized electronic payment transactions, including presumptive bank liability, clearer allocation of risk between banks and customers, and the integration of cyber insurance as a complementary compensation mechanism. Such reforms are essential to enhance consumer protection, ensure effective compensation, and maintain financial system stability.

Governing innovation: The role of D&O insurance in curbing R&D opportunism

Promote or Inhibit? Director and Officer Liability Insurance and Corporate Excess leverage

Abstract What should be done when the contribution base for employers’ liability insurance associations erodes due to structural change, yet the pension liabilities from past decades still need to be met? To prevent financial imbalances, the Accident Insurance Modernisation Act was passed in 2008, drastically reducing the number of employers’ liability insurance associations and introducing a burden-sharing mechanism. Now is the time for an initial assessment. Has the reform met expectations for greater stability? This analysis shows, on the one hand, that the burden-sharing mechanism means that traditional industrial sectors in particular are among the beneficiaries or are on the way to becoming so. On the other hand, it is clear that the new system ensures the solidarity-based and stable financing of pension liabilities within statutory accident insurance.

This commentary analyses Spanish Supreme Court Judgment (Civil Chamber, First Section) No. 1581/2025 of 5 November, delivered in a medical-healthcare liability dispute, in which the Court addresses the legal nature and enforceability against third parties of a per-victim sub-limit in a liability insurance policy where it coexists with a per-occurrence limit. Building on the Court’s settled case law on the insured sum in liability insurance, the judgment reiterates that the per-occurrence limit, as the quantitative coverage cap, normally operates as a risk-defining clause and is enforceable against the injured third party. However, it introduces a criterion of particular practical importance. Where the per-victim sub-limit operates as an internal reduction of the general per-occurrence limit, it “conditions and diminishes” the economic scope of coverage and, therefore, is classified as a limitation of rights clause, subject to the requirements of Article 3 of the Spanish Insurance Contract Act (LCS). This classification leads to the judgment’s central consequence. For the sub-limit to be enforceable against the injured party, it must be specially highlighted and specifically accepted in writing; failing proof that these requirements are met, the clause is unenforceable and coverage reverts to the higher per-occurrence limit. The paper links this criterion to the case law on specific acceptance, incorporation of general terms and evidencing consent, emphasising its particular relevance in group policies and in digital contracting, where traceability of the signature or a differentiated acceptance becomes decisive. It also examines how the criterion operates in the context of the injured party’s direct action and draws on related precedents concerning internal coverage reductions and temporal delimitation clauses in liability insurance (Article 73.2 LCS), as well as the regime of default interest under Article 20 LCS. Finally, the paper reflects on the scope of the “conditions and diminishes” criterion from both a market-practice perspective and the standpoint of protecting the victim’s claim. It underlines that the judgment shifts the focus from mere interpretation of the limits schedule to proof of incorporation and specific acceptance of the reduction, with direct implications for insurers and intermediaries in drafting, formalising and evidencing sub-limits.

The authors of the study investigate institution of independent directors in BRICS state members (Brazil, Russia, India, China, South Africa) as a transplanted element of Anglo-American corporate governance. A goal of exploration is to test the widespread assumption that increasing a number of “independent” directors automatically improves corporate oversight in jurisdictions with concentrated ownership and strong state participation. Methodologically the research relies on comparative doctrinal analysis of legislation, stock exchange rules and soft law codes, complemented by a critical review of empirical studies and statistics on corporate board composition and liability trends. The argument develops in three main parts. First, the legal framework section maps how independence requirements are formulated and enforced in BRICS, highlighting differences in the level, form and strictness of regulation. Second, the “fundamental issues” section links the independent director to contested corporate governance goals (shareholder value versus stakeholder welfare) and to the agency problem under capital concentration, showing why the classic U.S rationale does not straightforwardly apply here. Third, “contemporary challenges” section examines a gap between formal and real independence, specific tensions of independent directors in state-owned or state-influenced companies, incentive structures shaped by reputation, remuneration and liability insurance, and Russia’s anti-sanctions regime as an experimental suspension of board level independence. The authors conclude formal independence criteria and numerical quotas are neither sufficient nor context neutral. In the field of BRICS members the performance of independent directors depends on clarifying whose interests they are meant to protect and on aligning incentives so that genuinely autonomous judgment is possible despite concentrated ownership, state influence and rising personal liability risks.

Introduction:This review provides an overview of Roland R. Griffiths’ history of research, and his mentoring and collaborating approach to science that contributed to his impact in behavioral and neuropsychopharmacology and psychedelic medicines development.Approach:The approach was to summarize studies in his major domains of research, including preclinical and clinical abuse liability assessment science, alcohol, benzodiazepines, caffeine, tobacco, and psychedelics. All the authors of this review were mentored by and collaborated with Griffiths—some over several decades—and were able to provide personal perspectives and insights into Griffiths’ approach to science and scientific collaborations, including insights into how major research initiatives were conceived and evolved with personal anecdotes and quotes.Overview:Roland Griffiths is widely described as a “scientist’s scientist,” driven by his powerful curiosity to explore new frontiers in behavioral biology and neuropharmacology, with a passion to pursue humanity-serving science. His methodical approach to research development and then systematic extension and assessment of the generalizability of findings contributed to the evolution of thinking and scientific methods for abuse liability assessment, policy, and regulation of alcohol and other sedatives, tobacco and nicotine, caffeinated products and other stimulants, and in his last 2 decades, psychedelics. His inclusive and collegial approach to science, mentoring, and collaborating fueled his creativity and productivity and a fountain of innovation and research that will go on in perpetuity. Nowhere is this more evident than at the Johns Hopkins Center for Psychedelic and Consciousness Research established in the last few years of his life, in part because of his remarkable scientific life.

Insuring the green transition: the impact of D&O liability insurance on corporate green innovation

Type of the article: Research ArticleAbstractThe integration of AI-enabled medical robots into the medical field has increased the potential risks to which patients may be exposed. To protect patients’ rights, this study aims to explore and analyze the need for mandatory insurance against civil liability of medical robots operating with AI technologies in the United Arab Emirates. Such insurance is intended to ensure adequate compensation, reinforce legal protection, and uphold confidence in medical practice, while also contributing to societal stability and supporting the growth of the insurance sector. The study employed a combination of descriptive and analytical methods. It concludes that smart medical robots are neither inanimate objects nor irrational beings. It recommends legislative regulations granting them digital legal personality under specific controls, recognizing their independent financial status, and enabling them to bear civil liability for actions causing harm. The study showed an upward trend in the number of insurance companies providing liability coverage for damages caused by AI-operated medical robots, increasing from two in 2020 to ten in 2025, and expected to rise further if full legal personality is granted. The research findings suggest amending the UAE Civil Transactions Code and the Medical Liability Law to codify civil liability provisions for autonomous smart medical robots and to mandate liability insurance. Furthermore, as insurers’ obligations depend on establishing the insured’s liability, UAE law should grant the injured party a direct right of action against the insurer.

The article is devoted to the analysis of problems related to the introduction of information systems based on artificial intelligence into the activities of law enforcement agencies. The positive aspects of using artificial intelligence systems to solve official tasks by law enforcement officers are emphasized. The directions for the application of AI systems in law enforcement activities are described. At the same time, a range of current and potential problems related to the use of intelligent systems that already serve the law enforcement sphere and may be used in the future are outlined. It is emphasized that artificial intelligence systems developed for law enforcement officers have a high degree of risk, threatening the protection of human rights. It is assumed that the actions of law enforcement officers as a result of the use of AI systems may not comply with the principle of proportionality. The emphasis is on the issues of the quality of AI developments and the data on which they are trained, and the related problems of liability and transparency policy of the manufacturer, as well as the problems of intellectual property protection. It is emphasized that the use of inappropriate AI systems in procedural actions is unacceptable, as it may violate the human right to protection and a fair trial. The opinion is affirmed that artificial intelligence systems designed for law enforcement agencies must be accurate and reliable; their intellectual work must be transparent, understandable, and safe. Attention is drawn to the need to develop high-quality AI systems with narrow specialization, designed to help law enforcement agencies perform certain tasks: risk assessment, detection of disinformation, detection of deepfakes, profile creation, for analytics of crimes against individuals, etc. It is proposed to classify not only AI systems for law enforcement agencies, justice, and border services, but also those developed for customs and tax authorities as high-risk. The problem of using intelligent systems to combat crime in the metaverse is outlined. The problem is identified as the absence of regulatory acts in national legislation regulating the implementation and use of information systems based on artificial intelligence in law enforcement and other areas of life.

Does directors’ and officers’ liability insurance lend governance credibility? Evidence from share repurchase in Taiwan

This study examines the Ec of extreme weather events in Europe on stock market returns for European insurance companies. Using event studies and multivariate regression analysis on the stock prices of 23 European insurance companies in the aftermath of the 10 largest possible climate-related natural disasters in Europe between 2000 and 2024, the study addresses the question of how these returns are affected by the disasters. The results indicate only moderate and unsystematic responses. Furthermore, the study suggests that stock markets distinguish between property and liability insurers (P&L) and reinsurers and that their stock prices react differently to extreme weather events in Europe. Additionally, no systematic variation was discerned in the impact of different climate-related natural disasters on the performance of insurance companies. • This paper investigates the effect of ten major, possibly climate-related natural disasters in Europe (2000–2024) on stock market returns of 23 European insurance companies using event studies and regression analysis. • The results show only modest and unsystematic responses of insurance stock returns to climate-related disasters, with no consistent pattern across different event windows or disaster types. • The study suggests that stock markets distinguish between property and liability insurers (P&L) and reinsurers, and that their stock prices react differently to extreme weather events in Europe. • Regression analyses show that the magnitude of the disaster or the size of the insurer has only a limited impact on abnormal returns. However, reinsurers tend to react more negatively to extreme weather events in Europe. • Compared to studies based on data from the U.S., the European insurance sector appears more resilient or less reactive to climate-related financial risks, suggesting differing market dynamics or expectations.

Co-opted boards and directors' and officers' liability insurance

The 1975 Civil Code of Algeria governs tort liability through Articles 124–140, establishing a fault–based regime (responsabilité pour faute) supplemented by strict liability for damage caused by “things” (responsabilité du fait des choses, Article 138). However, this framework predates artificial intelligence (AI) systems that exhibit autonomous decision–making, algorithmic opacity, and unpredictable outcomes. As Algeria advances its National AI Strategy (2020–2030) and deploys AI across healthcare, finance, and public administration, victims of algorithmic harm confront evidentiary barriers proving faute (fault) and lien de causalité (causation) given the “black box problem.” This article examines whether the Algerian Civil Code adequately addresses AI related damage or requires legislative reform. It evaluates three doctrinal pathways: (1) extending Article 138 strict liability to autonomous algorithmic systems, (2) adopting presumption of causality for high–risk AI (modeled on EU AI Act Article 6), and (3) introducing mandatory liability insurance for AI providers (EU AI Act Article 28). A comparative doctrinal analysis of the Civil Code Articles 124, 138–140 is done in this article against the European Union’s AI Act (Regulation 2024/1689) and AI Liability Directive (Proposal COM/2022/496), and then triangulated with South African delictual liability frameworks and Maliki jurisprudence principles (qawa’id fiqhiyya: la darar wa la dirar). Article 138 “things” (choses) liability does not accommodate AI systems hybrid software–hardware nature, algorithmic autonomy ruptures traditional causation chains, and Algeria lacks statutory AI insurance mandates. This creates compensation adequacy gaps. This article proposes three Civil Code amendments: (1) Article 138 expansion by defining AI systems as choses dangereuses (dangerous things) triggering strict liability, (2) new Article 124–ter introducing rebuttable presumption of causality for high–risk AI (healthcare diagnostics, credit scoring, administrative decision–making), and (3) Insurance Law No. 95–07 amendment mandating minimum coverage thresholds for AI providers. Algerian AI Council should convene a Civil Code Reform Working Group (2025–2026) to draft implementing decrees, drawing on EU AI Act operational experience and African Union Digital Transformation Strategy regional harmonization efforts.