The firm published more than 150 insurance predictions, including that the ‘exponential growth in group litigation and collective redress in recent years is here to stay’. This is fuelled by the expansion of the litigation funding market, increased awareness of access to justice and media campaigns. DAC’s Predictions state: ‘Antitrust infringements, environmental damage, data privacy breaches, financial stock-drop and corporate scandals are fertile hunting grounds for claimant law firms and funders hungry to build their next lucrative claim.’
It also anticipates an imminent wave of class actions linked to PFAS (per- and polyfluoroalkyl substances) compounds, also known as ‘forever chemicals’ because they do not degrade in the environment. Exposure to PFAS can have a seriously adverse impact on health, and DAC expects litigation to be brought forward targeting industries that have used PFAS in their products.
DAC expects more climate change activists to take companies to court if they do not comply with emissions regulations.
It also highlights ESG concerns, which will ‘drive transnational litigation with parallel proceedings in multiple jurisdictions’. It states: ‘We see a growing recognition by courts and legislators across the world of the need to promote access to justice and to enable citizens to obtain compensation comparable with what would be received elsewhere, namely the US.’
Helen Faulkner, Global Head of Insurance at DAC Beachcroft, said: ‘There is a significant overlap in environmental, social and governance (ESG) issues that we are seeing emerge, which highlights a sweet spot on which to focus our attention in the year ahead to create a resilient industry of which we can all be proud.’
The predictions can be found at: insurance.dacbeachcroft.com/predictions.
