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Report

UK financial institutions claims insights 2022 year-end review

To read more about what claims have arisen and where, as well as our outlook for the remainder of 2023, please download our report.

Financial Institutions City Building

In 2022, Marsh Specialty financial institutions (FI) clients filed more claims notifications than in 2021, with errors and omissions (E&O) the most common, followed by directors and officers (D&O) liability. Whilst total claims and the frequency of claim types in 2022 remained broadly similar to 2021 our more granular data reveals variations which this report explores.

Following several years of declines, 2022 showed a small (2%) increase in claims ratios — the number of claims notified by clients compared to the number of policies placed. The COVID-19 pandemic, the Russia-Ukraine conflict, rising inflation, and increased borrowing costs all combined to shape the 2022 litigation and regulatory landscape. Despite these factors, the modest increase in recorded claims in 2022 suggests that a significant increase in claim notifications has been avoided, at least temporarily.

As well as reflecting on 2022, this report also looks ahead to 2023 and beyond. We discuss claim trends which might emerge including the “E” in ESG (environmental, sustainability, and governance), a hazardous sanctions environment for FIs, fallout from recent volatility in the cryptocurrency industry, and the UK Government’s autumn 2022 ‘minibudget’.

To read more about what claims have arisen and where, as well as what we anticipate for the remainder of 2023, please download our report.