In the 5th session this autumn of AIG Academy Connected, the D&O insurance is in focus and the latest claims trends and cases surrounding the product. The webinar was hosted by Michael Jensen, General Manager AIG Nordics, while Nima Rafiee, Underwriting Manager Financial Lines Europe at AIG and Niklas Theter, Head of Financial Lines Nordics at AIG, presented the topic and insights from their points of expertise.
Nima kicks off his presentation by digging into D&O claims trends, explaining the use and background behind derivative claims, the latest developments and example cases. He points out that since March we have seen a wave of derivative claims in New York courts against non-US companies. These include Bayer, Deutsche Bank, StandardChartered, UBS, Credit Suisse and Societe Generale. A common denominator of the European cases are often that they consist of a big US shareholder base combined with major operations in the US. This type of companies will also most likely run the greatest risk for US claims in the future.
Niklas continues to discuss more of the effects for Nordic companies surrounding D&O. He mentions certain examples that have been brought to court, such as money laundering scandals and cases involving bribery and corruption. He mentions certain topics and business interruptions that have caused damage to company brands and goodwill, such as the me too movement, but also cyber exposure in the events of losing personal data.
Other D&O trends highlighted in the webcast are regulatory investigations and litigation funding. Nima explains that it has been an increase in the number of regulatory investigations regarding bribery and corruption. He also highlights that large sanctions has occurred during the last five years against large European companies. In terms of Litigation funding, there has been an increase in number of funds and companies that focuses on litigation funding, while it is a main contributor to the significant increase in US securities lawsuits, where the US stands for around 40%.
The webcast will also highlight what D&O insurers expect to be the consequences of the pandemic, such as a possible increase in bankruptcy claims.
Learn more about understanding the Changing Risks for Corporate Leadership by watching the full webcast through the link below.