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…

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Guy Carpenter recently published insights on the critical issues shaping the reinsurance industry to coincide with the 2020 APCIA Annual Meeting. Topics covered in the articles center around the changing nature of risk, specifically the evolving landscape for cyber, wildfire and broader casualty risks.

The Changing Nature of Risk: There is an old adage that “adversity builds character.” However, before adversity builds character, it reveals character, and the numerous catastrophes that have occurred over the last several years combined with the ongoing pandemic have clearly revealed the character of the insurance industry, according to John Trace, CEO, North America, Guy Carpenter, and Jay Dhru, Global Head of Business Intelligence, Guy Carpenter.

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Why 2020 Has Made the Ever-Evolving Cyber Landscape Even More Dynamic: The insurability of systemic cyber risk will be one of the defining issues of the next decade for the (re)insurance sector. Rapid technological changes and digitalization in particular have already transformed the characteristics of risks assumed by the (re)insurance market, according to Guy Carpenter colleagues Will Garland, President,…

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The insurability of systemic cyber risk will be one of the defining issues of the next decade for the (re)insurance sector. Rapid technological changes and digitalization in particular have already transformed the characteristics of risks assumed by the (re)insurance market.

Businesses continue to embrace technological innovation despite the fact that doing so may lead to the emergence of new and unforeseen risks, according to Guy Carpenter colleagues Will Garland, President, Centers of Excellence, and Erica Davis, North America Cyber Center of Excellence Leader, Guy Carpenter. As cyber risk is one of the most swiftly evolving perils in the industry, carriers should carefully manage the exposures – and not only for competitive advantage. As regulators formalize capital requirements and qualitative measurements of risk appetite in this rapidly evolving market, companies will be required to enhance cyber underwriting and reinsurance strategies, leverage innovative modeling capabilities and develop technical and underwriting risk talent to continue offering clients the best security possible.

As companies depend more on technology to conduct business, they are also increasingly…

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Summary

When COVID-19 hit, both insurers and the insured had to grapple with policy claims and whether a product responded to the crisis. This was no different in the construction industry where parties had to examine their policy language to understand if the damage sustained by the pandemic was the same damage they could claim for under insurance. This article takes a look at how some typical construction insurance policies have responded and further, how the insurance market may evolve post-pandemic and how stakeholders can re-look their risk management approaches and insurance solutions.

A. Introduction 

When COVID-19 unleashed its fury, global business operations and supply chains were severely affected. The construction industry was no exception. The industry was held hostage by its ties to heavy on-site requirements and operations, supply of materials and equipment and labour continuity.

In Singapore, the pandemic stopped most construction works and we are only seeing a gradual resumption in recent months. Even so, it’s been a slow return and the Government announced the S$1.36bn Construction Support Package on 27th June 2020 to give financial support to construction…

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The specialty marketplace for cannabis operators and the broader insurance market as a whole are tightening, and policy language is being revised as insurers respond to COVID-19, speakers said during a Business Insurance webinar Wednesday.

Despite the challenges, there are steps cannabis operators can take to make themselves more insurable, they said.

From a coverage standpoint, one of the key changes since COVID-19 arrived is that insurers are “not so zealous about writing business that they would usually write,” said Summer Jenkins, Sacramento, California-based senior product development manager at Cannasure Insurance Services.

“Underwriting guidelines are tightening up, and insurers are also responding with coverage form changes. Clarity in the coverage language is always helpful for the insured and the carrier during the claims process. We’ll continue to see things like that develop,” Ms. Jenkins said.

Business income insurance, also known as business interruption insurance, is one area of change since COVID-19, panelists said.

Insurers are not necessarily looking to write business income on all accounts, Ms. Jenkins said.

“We need…

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