The number of professional and management liability insurance claims in the UK has risen steadily over the last decade and remains four times higher than pre-financial crisis levels, according to a new report by Marsh
In its latest research, the major global insurance broker and risk adviser revealed that it recorded an average of 200 to 300 directors and officers (D&O) liability insurance claim notifications between 2005 and 2007.
With the onset of the world financial crisis in 2008, claim notifications rose by 75% to nearly 500. The number peaked at 1,685 in 2012.
Since 2013, Marsh
has received around 1,300 D&O claim notifications in the UK every year, a four-fold increase on previous levels before the financial crisis.
“The increasing volume and complexity of regulatory activity in the UK and the European Union is a major driver of this upward claims notification trend,” said Robert Lewis, Marsh
UK risk management practice claims leader.
“There is also an increasing level of cross border co-operation among regulators and a shift towards class or collective actions across EU member states,” he added.
According to Marsh
, insurers declined only less than 1% of financial lines claims made by its UK clients between 2011 and 2015.
However, 39% of the declined claims resulted from a failure to notify in accordance with policy requirements or timeframes.
“Organisations should review the terms and conditions of their policy wordings as soon they are received, not simply when a claim is first made, or worse, once it has developed or settled,” Lewis said.