The insurance industry could be forgiven for appearing like a headless chicken since the US mortgage crisis sparked the global credit crunch. The market is waiting with bated breath to see what impact the collapse of the sub-prime mortgages will have in the insurance world.
There is an expectation that as companies continue to fold in the US and globally, insurers will be drawn into massive insurance litigations as a result of irregularities in companies’ housekeeping leading to insurance claims becoming invalid.
The directors’ and officers’ (D&O) policies are expected to be hit the hardest. Although often seen as a US phenomenon, will the UK be hit by D&O issues too?This Insurance Special Report also discusses whether the climate change bandwagon is impacting on the insurance industry and whether the current Law Commission review of insurance contract law is bringing us closer to the possible Insurance Contracts Act 2010.