Marsh highlights the four-fold increase in a report released today
UK professional and management liability insurance claim notifications have increased four-fold against pre-financial crisis levels, according to research by Marsh.
The sharp increase was noted in Marsh’s report, published today, ‘Professional and Management Liability insurance claims: Common pitfalls for unwary policyholders’. According to the report, between 2005 and 2007 Marsh recorded an average of 200-300 directors and officers (D&O) liability insurance claim notifications. The average rose by 75% to 500 with the onset of the financial crisis in 2008, and peaked at 1685 in 2012.
While the average fell slightly in 2013 to 1300 – an average that has been steadily maintained to date – this figure is still four times that of 2007.
Marsh claims leader, UK risk management practice Robert Lewis said: “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.”
He added: “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.”