DAC Beachcroft believes insurers will come under pressure in the months ahead from an uptick in deteriorating workplace safety and fraudulent claims.
The law firm said: “A global recession will inevitably lead to more cost-cutting, insolvencies and greater business uncertainty. We predict that in some industries this will mean reduced investment in plant and training, resulting in some employees being asked to fulfil roles for which they do not have the requisite competence or equipment.
“This will in turn lead to an increased risk of workplace incidents and a subsequent rise in claims and HSE enforcement action.
“Casualty claims fraud is also expected to rise. The correlation between casualty claims fraud and recession is well documented. Exaggerated and fabricated claims in particular will rise as a result of the increased proportion of people motivated by financial hardship.
“Claimants will take advantage of the lockdown measures and data tells us claimant solicitors’ behaviour is already changing in response.”
Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks. Published June 2021
Manufacturing: An industry at risk amid great technological change
Of the many sectors of business, manufacturing companies are among the most at risk from cyber threats. How has the sector evolved to make it so vulnerable and what does the task of managing cyber exposure in a manufacturing company look like? CIR’s latest podcast with Tokio Marine HCC sought to answer all these questions and more. Published April 2021
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