Data breaches, Brexit and the US/China trade war are the top legal risks for insurers, according to law firm RPC’s annual insurance review.
The firm’s report, published last week, warns that data breaches are increasingly likely to result in large group lawsuits backed by litigation funders, with potentially thousands of people affected. The impact of Brexit on supply chains and product liability insurance is another major concern—RPC advises product liability insurers to update policies as the final Brexit deal becomes clear because, if tariffs or border delays make EU products more expensive, manufacturers may source alternative components and product standards may suddenly change.
Third, RPC warns that politically-driven imposition of taxes and tariffs can be a grey area for political risk policies; therefore, both insured and insurers will need to keep on top of developments in the escalating US/China trade wars in 2019.
Simon Laird, global head of insurance at RPC, said: ‘Unpredictable developments in international politics could have a widespread effect on cross-border trade.’
