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 has created aberrational D&O claims data, so it is difficult to predict future claims activity based on that data. It appears much of the inconsistent 2020 and 2021 claims data is gradually returning to the pre-pandemic trends, although it seems likely the pandemic will, to some extent, leave a longer-term legacy which could materially impact D&O claims.
Added to this uncertainty is the new Biden administration (aided by a Democratic-controlled Congress), which is implementing increased 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.