Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • Former Ironshore, Lexington CEO Kevin Kelley Dies
  • Lemonade Posts Another Quarterly Loss
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

Allianz D&O Outlook: ESG Claims ‘Here to Stay’ and AI Rapping at the Door

By Chad Hemenway | December 14, 2023
Email This Subscribe to Newsletter
  • Article
  • 1 Comment

While everyone may be talking about potential risks associated with generative artificial intelligence, a new directors & officers report from Allianz highlights a range of current concerns associated with environmental, social, and governance issues.

Agree or not with the premise of, or attention to, ESG as a part of corporate management, companies’ leadership are considerably exposed to investigations, enforcement actions, and potential fines and penalties as ESG reporting mandates grow in number, said Allianz Commercial in its D&O insurance report.

“Not every stakeholder holds the same view on an issue or the same view as to what actions directors should take,” says David Ackerman, head of global financial lines claims at Allianz Commercial, in a statement. “In a world that is becoming increasingly polarized, politically and socially, the very need for directors to evaluate and address the impact of various ESG factors on corporate value creates risk that claims will be made, by activist shareholders or other motivated stakeholders, on either or both sides of any given issue.”

Allianz acknowledged the frustration from organizations and stakeholders regarding the definition of an ESG issue. One example, Allianz said, is whether privacy lands within ESG as a social concern. Furthermore, critics have argued the issues within ESG are already a part of director’s duties, and no alternative governance is warranted. The lack of clarity and the multiple interpretations open D&Os up to significant risks, prompting Allianz to conclude ESG claims are “here to stay.”

Interestingly, some of the brainstormed risks surrounding the legal and ethical use of generative AI could be seen as having overlap with ESG. The use of the AI could indeed positively effect an organization’s business models and processes. However, challenges include the responsibility of managing bias and misinformation, privacy concerns, and proper governance.

Litigation against AI companies has already focused on privacy risks and copyright law violations, and additional litigation could include securities claims, intellectual property claims, breach of fiduciary duty claims, misrepresentation claims, and shareholder and derivative lawsuits, Allianz said.

“AI’s potential to create competitive advantages is exciting but there are also challenges with its adoption that companies should consider, such as threats to cybersecurity, increased regulatory risk, unrealistic investor expectations about its capabilities, as well as managing misinformation,” said Hannah Tindal, a regional head of commercial D&O at Allianz Commercial.

Overall, the 2024 D&O market outlook will likely remain competitive but that could change, Allianz concluded. Litigation settlements have been rising, as has the cost to defend claimants. Additionally, inflation, regulatory scrutiny, and litigation funding are among factors that can impact the line of business. New carriers that have entered the market may not have the means to withstand these issues, Allianz added.

Topics Trends InsurTech Claims Data Driven Artificial Intelligence Allianz

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Tesla Must Pay $243 Million Over Fatal Autopilot Crash
Progressive Could Soon Breach Excess Profits in Florida Auto, Triggering Refunds
‘Soft Market Under Stress’ Offers Unique Window of Opportunity for Insurance Buyers
Hiscox Agrees to Acquire US Specialist Insurtech

Written By Chad Hemenway

Chad is National News Editor at Insurance Journal. He has been a journalist since 2000, with a focus on the insurance industry since 2007, reporting on trends and coverage in most lines of insurance as well as natural catastrophes, modeling, regulation, legislation, and litigation. Chad can be reached at chemenway@wellsmedia.com

Latest Posts:
  • Former Ironshore, Lexington CEO Kevin Kelley Dies
  • Federal Judge Stops FEMA From Diverting Infrastructure, Disaster Mitigation Grants
  • Lemonade Posts Another Quarterly Loss but Car Growth Continues
  • Parrish Named CEO of Howden US, Is Sued by Former Employer Marsh
More From Author

Interested in Ai?

Get automatic alerts for this topic.

Email This Subscribe to Newsletter
  • Categories: National NewsTopics: AI risk, Allianz, D&O, Directors & Officers, environmental social governance (ESG
  • Have a hot lead? Email us at newsdesk@insurancejournal.com

Latest Comments

  • December 15, 2023 at 10:38 am
    Tiger88 says:
    ESG is here to stay! DEI is the way it is so get used to it! Nope and no...

Add a CommentSee All Comments (1)Add a Comment Cancel reply

Your email address will not be published. Required fields are marked *

*

*

More News
Minnesota Cities Consider Government-Run Marijuana Shops
Tesla Secures Texas Rideshare Permit for Robotaxi Operation
Why Experts Say States Need to Get in the Business of Floodplain Buyouts
Zurich Insurance Reports Record H1 Profit of $4.2B, Driven by Middle Market, Specialty
More News Features

Read This Next

  • Allianz D&O Outlook: ESG Claims 'Here to Stay' and AI Rapping at the Door
  • AIG General Insurance Underwriting Income Up 46% in Q2
  • Insurer Can't Sue for Unjust Enrichment by Deceptive Insured, Appeals Court Says
  • Florida Judge Blocks State Agency for Citizens Claims Disputes, But Insurer Appeals
  • Trump Set to Outline AI Priorities in Speech Asserting US Edge

Insurance Jobs

  • Insurance Account Executive/Manager Wanted Flexible Hours, Potential Equity - Dix Hills/Deer Park, NY
  • Sales Agent - Encino, California
  • Auto General Liability Senior Counsel - San Antonio, TX
  • Commercial Lines Underwriter – REMOTE - Remote
  • Account Executive Officer, Commercial Accounts Underwriter - Albany, NY
MyNewMarkets
  • DIY Home Inspections Are Taking Over, Firms Say
  • Six Things to Know About Umbrella Insurance
  • What to Know About Construction and Environmental Liability
  • How Embedded Insurance Supports Real Livelihoods in the Growing On-Demand Economy
  • How to Keep Third-Party Events from Becoming First-Party Losses
Claims Journal
  • California Blaze Burning for Week Chars Thousands of Acres
  • France Contains Wildfire But Heat Wave Set to Intensify
  • Lemonade Posts Another Quarterly Loss But Car Growth Continues
  • Missouri's 2025 Insured Losses From Severe Weather Approaching $2 Billion
  • Prudential in $100M FTC Settlement Over Unit's Healthcare Promises
Academy of Insurance education
  • August 7 EPLI Basics
  • August 14 Managing and Insuring Reputational Risk
  • August 19 How To Write: Flood
  • August 21 Workers' Comp Crash Course

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map