In this episode of AMBestTV, attendees at the 2020 PLUS D&O Symposium in New York said the fallout from cyber- and ransomware-related incidents increasingly includes lawsuits and other issues that could trigger coverage under directors and officers (D&O) policies. Click on http://www.ambest.com/v.asp?v=plusdandocyber220 to view the entire program.
"We are seeing it affecting the C-suite in that directors, officers and board members are being called on the carpet for maybe not having proper cyber policy or insurance, as well as not effectively disclosing when there is some sort of a cyber event, either in a timely manner or not disclosing it in total," said David Blades, associate director, AM Best Rating Services.
Kristin Kraeger, managing director, Aon, said, "Cyber is now a D&O risk. Not dissimilar from the #MeToo in that it tops the list of the type of event-driven litigation. We see the variety of those suits to be more of the derivative nature, although you could certainly have a stock drop and we have seen those types of cases where the impact of disclosing a breach could result in a stock drop. Seeing both derivative variety and class actions."
Other people that appear in this episode:
- Dan Hojnowski, vice president, TransRe;
- Bethany Greenwood, head of executive risk, Beazley; and
- Paul Manguson, D&O product manager, Travelers.
To access a copy of this market segment report, titled, "Expanding Risk Exposures Present D&O Insurers With Significant New Challenges," please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=294657.
Additional AMBestTV coverage from the PLUS D&O Symposium includes:
- AM Best: D&O Writers Race to Catch Up With Fast-Changing Market: Blades and Sridhar Manyem, director, AM Best Rating Services, said insurers writing coverage for the D&O sector are reversing a pattern of rate decreases at a time when litigation and exposure risks are expanding: http://www.ambest.com/v.asp?v=bladesmanyem220.
- #MeToo Movement Claims Spread Into C-Suite: Attendees say sexual harassment claims typically trigger employment practices liability insurance, but are now spreading to D&O insurance: http://www.ambest.com/v.asp?v=plusdandometoo220.
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