Dan Bailey Provides an Update on Recent D&O Claims Developments
The D&O claims environment is now in an unusually uncertain state. The COVID-19 pandemic created aberrational D&O claims data, so it is difficult to predict future claims activity based on that data. It appears much of the recent claims data is gradually returning to the pre-pandemic trends, although other factors are likely to impact D&O claims. For example, record high inflation, interest rate increases, supply chain disruptions, tight labor market and higher fuel costs, as well as the prospects of a recession, will likely create a material increase in D&O claims activity in a wide variety of industries.
Added to this uncertainty is the Biden administration, which is proposing and implementing an increasing number of important regulations, is more aggressively pursuing regulatory enforcement proceedings, and is supporting wide-ranging social reforms. Those initiatives seem likely to directly or indirectly impact, at least to some extent, the nature, frequency and severity of D&O claims in various contexts.
The following summarizes many of the more important recent legal developments involving D&O claims. During these uncertain times, it is especially important for those who advise and insure directors and officers to carefully monitor and react to these and other developments.