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Report

UK Management Liability 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.

Management liability (ML) claim notifications increased by 23% in 2022 from the prior year, driven primarily by commercial clients. Similarly to previous years, more than half of these notifications were directors and officers (D&O) liability insurance losses. However, EPL claims increased compared with notifications made in 2021.

From a high of 48% in 2017-2018, our claims ratio analysis revealed a dip in notifications during the hard market conditions experienced from 2019 to 2021. However, as the D&O market started softening, the rate of notifications rebounded, climbing to 36% for policies placed throughout 2021. We expect this upward trend to continue for policies placed in 2022.

Our industry review focuses on six key sectors: energy and utilities, healthcare, professional and business services, media and entertainment, information technology, and transportation.  Overall, these industries experienced slightly less claims activity than in 2021 but still account for 41% of the total ML claims recorded in 2022. 

For the year ahead, it is expected current macroeconomic conditions will create difficulties for companies attempting to hit already challenging financial, social, and environmental goals. Directors and officers continue to face heightened personal accountability, and regulators will continue scrutinising companies’ actions both at home and overseas. Additionally, activist investors will target companies they judge as not behaving as they should.

To read more about the main types and causes of ML claims experienced in 2022, as well as our outlook for the remainder of 2023, please download our report.