The current difficult economic environment and changing working practices are driving increased commercial and employment litigation, making Commercial Legal Expenses insurance cover more vital for businesses than ever.
The collapse of Silicon Valley Bank has direct implications within the insurance industry. Karen Allen Managing Director of GRP’s London Market broker Lonmar examines the impact of the SVB collapse the D&O insurance market, and the exposure of company Directors to personal claims following an insolvency.
Low growth and inflation both have a significant impact on insurers as their claims costs increase while the value of their investments decrease. Insurers are passing this economic pain on to their customers as they strive to make a profit - focussing on rate strength, inevitability leading to an increase in premiums.