Crime insurance premium rates are on the rise as criminals exploit new opportunities created by the COVID-19 pandemic. Businesses need to make sure that appropriate security measures are in place and are followed by staff across the organisation not least because the expected economic downturn following the outbreak is likely to drive crime insurance premium rates up further.
The COVID-19 outbreak is affecting the risk of litigation against Directors and Officers as potential plaintiffs scrutinise the way the board manages the company through the coronavirus crisis. While US courts have received the first securities class actions against company directors, the majority of lawsuits for UK companies are likely to focus on alleged mishandling of insolvency procedures.
Faced with significant losses from financial crime policies, insurers are now taking further measures to address rising claims trends in addition to adapting premiums and retentions.
Amid an uptick in claims, underwriting stringency is increasing and some insurers have left the market. Companies’ strong internal controls could make all the difference.
By Anne Davies, Partner at Gunnercooke LLP, and Michael Lea, Head of Management Liability, Lockton Companies.
Fraudsters’ manipulation of workers is becoming ever smarter, and now artificial intelligence is getting more involved.
The fast-changing US whistleblowing landscape might affect UK-based companies more than was previously supposed.