According to the Wall Street Journal, the record number of securities class action lawsuit filings is increasing the cost of D&O insurance for foreign businesses in the U.S. market.
The story says the 217 securities lawsuits filed against domestic and foreign businesses in 2018 is the highest amount in 20 years. The number of those lawsuits against foreign-based businesses increased 39 percent last year. That jump has come with an increase in premiums for directors and officers insurance for foreign business leaders. One insurance executive said premiums have increased between six and 30 percent, which she characterized as “dramatic.”
Chief Operating Officer John Keogh of Chubb Ltd., a leading insurance carrier, said “[s]omething needs to be done, because it’s not sustainable.” The record number of lawsuits is “driving costs and expenses.”