Advisen loss data show that the frequency of management liability claims has tripled during this century, though the growth has slowed somewhat since the end of the financial crisis in 2011. The claims include those for directors and officers, employment practices and fiduciary liability.
Fiduciary liability claims (below right) brought against companies in the finance, insurance and real estate sector eclipsed all others toward the end of the crisis. Much less volatility has been seen in employment practices liability, where the services industry consistently accounts for about 30 percent of claims–though that proportion has begun to grow since 2011. Services and manufacturing also account for a growing share of D&O claims, while the finance, insurance and real estate sector has seen activity recede since the financial crisis.
Advisen data show that, at least since the 1960s, D&O and fiduciary liability have been closely aligned in terms of loss severity. These claims outstrip those for employment practices liability.
