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Risks ahead for 2020

24 January 2020
Categories: Legal News , Insurance surgery
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Climate change will present the greatest insurance risk in the year ahead, as the ‘Greta Thunberg effect’ creates a global conversation around its impact and the need to act, insurance firm Kennedys has said

In its annual London Market forecast for the year ahead, published this week, Kennedys predicts a new wave of climate change litigation as climate science improves and extreme weather events become more frequent, resulting in potentially massive liabilities for the insurance sector and posing new challenges for the insurability of climate-related events. There may also be a rise in reputational damage claims as corporates are held accountable for their corporate social responsibility on the environment.

It warns of UK airlines moving their operations to the EU if the Department of Transport doesn’t devise a post-Brexit solution for access to ‘open skies’ in the EU. It also expects more high-profile corporate collapses with ensuing claims as creditors try to maximise their recoveries.

There may be an increase in sexual harassment claims, with employers’ liability insurers being most at risk. Data subject claims will increase in both volume and value. Issues may arise about construction insurance, with Kennedys already seeing numerous claims with issues about pods constructed off-site.

Deborah Newberry, head of corporate and public affairs at Kennedys, said: ‘As traditional risks look different and emerging risks demand traditional policies to be considered under a new lens, the London Market will need to reassert its ability to adapt and manage the constant evolution of global risk.

‘As has been evidenced in recent years, along with industry-led measures, an understanding of potential market disrupters is vital. Anticipating changing risk perceptions remains key to retaining the unique benefits of the London Market.’

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
The Court of Protection has ruled in Macpherson v Sunderland City Council that capacity must be presumed unless clearly rebutted. In this week's NLJ, Sam Karim KC and Sophie Hurst of Kings Chambers dissect the judgment and set out practical guidance for advisers faced with issues relating to retrospective capacity and/or assessments without an examination
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
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