US class action securities litigation, particularly around mergers, also remained a key concern despite a drop in new filings, the study found. Cryptocurrency companies and exchanges bucked the downward trend, seeing increasing activity.
“The recent decline in the number of filed securities and class actions in the US, coupled with an influx of new entrants, has created a more favorable market for corporate buyers of D&O insurance after double-digit percentage premium increases across key markets in 2021,” said Vanessa Maxwell, global head of financial lines at AGCS. “However, there is still a lot of risk facing insurers as macroeconomic issues and a potential slowdown loom – conditions which typically lead to an uptick in D&O claims. Inflation is likely to influence future claims through larger settlements. Cyber risk remains at an elevated level and is now seen as a core duty of D&O, with increasing scrutiny on how they respond. Meanwhile, ESG-related liabilities – whether it is inadequate action on climate change or diversity and inclusion issues – can potentially become significant exposures for D&O…
