AGCS report identifies mega risk trends for directors and officers in 2021: Covid-19 pandemic and its economic fallout increase exposures for them to be held accountable for poor performance or management decisions
Nervousness in an already strained D&O insurance market about current risk environment compounded by “known unknowns” such as climate change, cyber and ESG challenges
Publicly-listed companies generally higher exposed, but litigation risk for private companies and their management increasing in the Covid-19 pandemic
New York (December 15, 2020) – The Covid-19 pandemic has created a highly volatile and uncertain environment for businesses resulting in a litany of new or heightened risks for directors and officers (D&O) as well as exacerbating the situation in an already strained D&O insurance market, according to the new report Directors and Officers Insurance Insights 2021 from Allianz Global Corporate & Specialty (AGCS).
Rising insolvency exposures, growing cyber security threats and persistent securities class action activity are among the key risks for which D&Os of companies could be held liable. In 2021, companies also need to be on guard against “event-driven litigation” which can be caused by different triggers such as inaction on diversity, poor…
