Foran Glennon, newest member of Global Insurance Law Connect (GILC), has recently been featured in the sixth edition of GILC’s Risk Radar report, discussing the multifaceted challenges facing the U.S. insurance industry.
In the May 2024 report, Foran Glennon’s Peter Billis, John Eggum and Olivia Roberts examine how the insurance industry has responded to climate change and discuss the need to further address infrastructure vulnerabilities and explore how to effectively respond to increased cybersecurity threats.
The group shared infrastructure-related liabilities are particularly concerning; the ongoing deterioration of U.S. crucial infrastructure, from bridges to refineries to power grids, paired with the increasing frequency of climate change-induced natural disasters, suggests that preparation for future disaster is imperative for insurers. Insurers will need to navigate complex regulations and revise their approach to underwriting lest they risk providing insufficient coverage or charging higher premiums.
Foran Glennon Shareholder Peter Billis, highlights the need for insurers to refine their strategies, stating, “Climate change requires insurers to adapt, integrating science into underwriting for sustainable and accessible insurance solutions amid evolving risks.”
Additionally, insurers face the complexities of assessing and mitigating cybersecurity risks while still ensuring adequate coverage. The lack of standardized risk assessment frameworks and the interconnected nature of digital infrastructure between countries and businesses paired with the inability to effectively track this level of growing enmeshment increases insurers’ exposure to potential claims and liabilities in ways that they may struggle to effectively appreciate.
Addressing these issues calls for a multifaceted approach, requiring collaboration with policymakers, creating new risk management strategies and investing in resilience-building measures.
Read more here and find GILC’s 2024 brochure here.
GILC represents a diverse group of boutique insurance law firms spread across 23 countries on five continents. The network’s extensive reach provides invaluable local insights crucial for navigating complex cross-border legal challenges within the dynamic global marketplace.
Since 2001, Foran Glennon has represented clients around the globe, offering sophisticated legal services in a cost-effective manner. The firm’s solution-oriented attorneys represent insurance companies and other businesses in coverage, defense and subrogation matters, as well as in commercial litigation, bankruptcy, insolvency and creditors’ rights cases.