{"id":12323,"date":"2022-12-14T07:33:00","date_gmt":"2022-12-14T13:33:00","guid":{"rendered":"https:\/\/www.shieldagency.com\/blog\/?p=12323"},"modified":"2022-12-13T09:59:16","modified_gmt":"2022-12-13T15:59:16","slug":"5-key-specialty-lines-insurance-trends-affecting-businesses","status":"publish","type":"post","link":"https:\/\/www.shieldagency.com\/blog\/5-key-specialty-lines-insurance-trends-affecting-businesses\/","title":{"rendered":"5 key specialty lines insurance trends affecting businesses"},"content":{"rendered":"\n

Liberty Mutual <\/a>| Published 12\/07\/2022 | Specialty Lines Insurance<\/a><\/p>\n\n\n\n

It\u2019s no secret that the COVID-19 pandemic has had a devastating effect on many businesses. What began with supply chain issues soon transformed into even more complicated challenges, including labor market difficulties, an economic recession, and fraught geopolitical obstacles.<\/p>\n\n\n\n

These changes left risk managers and other business stakeholders looking for innovative ways to help protect their specific and sometimes unusual risks \u2014 something they could only find in the specialty lines market.<\/p>\n\n\n\n

Kristin McMahon, senior vice president, Global Risk Solutions North America specialty claims for Liberty Mutual and Ironshore, outlines five trends affecting the specialty lines market that businesses should be aware of and prepare for in the current risk environment.<\/p>\n\n\n\n

1. Cyberattacks continue to loom. | Specialty Lines Insurance<\/a><\/h3>\n\n\n\n

As businesses increase their reliance on video platforms, continue to store more data in the cloud, and adopt remote and hybrid working models, the danger of cyberthreats looms larger<\/a>.<\/p>\n\n\n\n

\u201cCyber is one of the only risks that has the capacity to impact every company and industry,\u201d said McMahon.<\/p>\n\n\n\n

And while any industry size and type can be affected, businesses with fewer than 100 employees are currently experiencing 350 percent more attacks<\/a> than larger companies.<\/p>\n\n\n\n

\u201cHistorically it was the larger accounts in the crosshairs,\u201d McMahon said. \u201cBut this year, we are seeing small- and medium-sized businesses suffer ransomware events more frequently than larger operations.\u201d<\/p>\n\n\n\n

Why? According to 2022 research by CNBC<\/a>, small businesses are ill-prepared to handle cyberthreats. Less than half of small businesses have installed antivirus software or backed up their files externally, while only a third have implemented basic security measures like automatic software updates and two-factor authentication. Noted McMahon, \u201cWithout the proper digital \u2018hygiene\u2019 and contingency plans in place, organizations will increasingly place themselves in harm\u2019s way.\u201d<\/p>\n\n\n\n

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\u201cCyber is one of the only risks that has the capacity to impact every company and industry.\u201d
-Kristin McMahon, senior vice president, Global Risk Solutions North America specialty claims for Liberty Mutual and Ironshore.<\/p>\n<\/blockquote>\n\n\n\n

This doesn\u2019t mean that larger organizations can be complacent. According to a 2021 Accenture survey<\/a> of senior executives, the average number of cyberattacks experienced per company increased 31 percent compared to 2020.<\/p>\n\n\n\n

\u201cFor larger companies, cyber hygiene is certainly critical. What\u2019s also important is having the board of directors take an active role<\/a> in protecting the business from cybercrime. Getting support from the top helps an organization prioritize cybersecurity and take active steps to stay on top of trends, conduct due diligence of third-party vendors, and more,\u201d said McMahon.<\/p>\n\n\n\n

2. A backlog of civil jury trials results in \u201crocket dockets\u201d. | Specialty Lines Insurance<\/a><\/h3>\n\n\n\n

As businesses closed their doors to mitigate the spread of COVID-19, so, too, did the courts. While some innovations, such as holding trials in stadiums or over Zoom, allowed for the necessary social distancing, many cases were outright delayed. In Texas, for example<\/a>, courts processed only 200 trials in 2020, compared to their normal 10,000 annual average.<\/p>\n\n\n\n

Noted McMahon, \u201cSince the return of in-person trials, the courts continue to navigate a significant case backlog. To get caught up, some judges are employing \u2018rocket dockets,\u2019 an approach that encourages plaintiffs and defendants to either settle or try their cases on an accelerated schedule.\u201d<\/p>\n\n\n\n

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\u201cSince the return of in-person trials, the courts continue to navigate a significant case backlog. To get caught up, some judges are employing \u2018rocket dockets,\u2019 an approach that encourages plaintiffs and defendants to either settle or try their cases on an accelerated schedule.\u201d
-Kristin McMahon, senior vice president, Global Risk Solutions North America specialty claims for Liberty Mutual and Ironshore.<\/p>\n<\/blockquote>\n\n\n\n

One side effect of this phenomenon: plaintiffs\u2019 attorneys in some cases will settle in pretrial for a reasonable amount, opting to only try cases with juror appeal for which they could receive large jury awards.\u202f\u202f\u202f\u202f\u202f <\/p>\n\n\n\n

\u201cIt\u2019s the older pre-COVID-19 cases accruing prejudgment interest where you have aggressive plaintiffs\u2019 attorneys who believe in their high-damages cases \u2014 they\u2019re going to hold out and try it to a jury,\u201d McMahon said.\u202f\u00a0\u00a0<\/p>\n\n\n\n

3. Societal and legal trends continue to drive social inflation and nuclear verdicts.<\/h3>\n\n\n\n

Read the full story here…<\/a><\/p>\n\n\n\n

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Discover more great blogs by Shield Insurance Agency!<\/h2>\n\n\n