Liability exposures for companies are increasing globally, according to a recent report carried out by Allianz.
Rising litigation, collective redress and large court verdicts are among the multiple factors set to impact businesses and insurers in the near future.
The report also identified the growing civil rest and riots in the US, as well as other countries, and rising environmental concerns during Covid-19, such as indoor air quality, as two unique factors affecting insurers.
Ciara Brady, global head of Liability at Allianz Global Corporate and Speciality (AGCS) said: ‘‘Pricing in the liability insurance market may have turned in recent months, however social inflation trends and large court verdicts continue in the United States.
‘‘This combined with expanded exposures for non-US companies doing business in the US and an increase in automotive part recalls are putting pressure on liability insurers.”
She added: “Overlay this with the uncertain economic outlook, political instability and unknown impacts from coronavirus and this is creating a challenging market for clients, brokers and insurers alike.
‘‘While we have to react to new loss trends in underwriting, AGCS remains committed to supporting our clients with solid risk transfer solutions and capacity to address today’s liability exposures.’’