2022 could bring new types of risk to the forefront
A crackdown on corporate dishonesty, a rise in aviation security incidents and a harder look at air pollution could be in the cards for 2022.
Throughout the month of December 2021, Clyde & Co. shared predictions and insight from their global insurance group in order to shine a line on trends and challenges that could impact the industry in 2022. While these predictions cover a wide range of issues, many of them pinpointed rising risks that insurers should keep an eye on over the next year.
In 2022, companies will begin to see the consequences of greenwashing
A piece from Clyde & Co. partners Dean Carrigan and Jacinta Studdert examines how companies can open themselves up to liability issues by not adhering to environmental standards and promises while greenwashing the way they present themselves to consumers.
Greenwashing happens when companies make misleading or false claims about how environmentally friendly their operations or products are. According to the piece, cases regarding this type of deception are beginning to gain traction in Australian courts and this, combined with increasing scrutiny from shareholders, regulators and activists, means it is imperative all statements made by companies can be substantiated in order to protect their liability.
A focus on false nutrition claims could land some companies in hot water
Not only are global laws on the offense when it comes to environmental responsibility, but they’re also beginning to crack down on false nutritional claims and negligent marketing in the food and beverage industry. Clyde & Co. partner Emma Ager predicts neuroscientific research about sugar’s impact on the brain and whether food and drink companies are altering their products to be more addictive, could open the door to litigation against companies who aren’t being forthright about what they’re feeding consumers.
Ager says in the piece that an increase in this kind of litigation will open insurers to challenges with product liability, product recall and D&O liabilities.
Air pollution and air quality will become significant exposures for organizations
A 2020 inquest into the 2013 death of nine-year-old Ella Kissi-Debrah of London found air pollution played a material role in her death. This made her the first person in the United Kingdom to have air pollution listed as an official cause of death and drew a new wave of attention to the severe effects of pollution. It has also forced debate over who is responsible for pollution-related injuries and conditions.
A piece from Clyde & Co. partner Toby Scott examines the claimant’s challenge of establishing who is responsible for the pollution; whether it be an employer, the government or some other entity. 2022 could see an emphasis on pollution-related litigation as headlines related to the dangers and illnesses associated with exposure continue to increase.
Increasing airline passenger incidents could lead to costly litigation
The pandemic has generated a never-ending supply of tales of unruly airline passengers who have resorted to physical violence in response to the enforcement of COVID-19 safety precautions.
A piece by Clyde & Co. partner Jeffrey Ellis cites statistics from the Federal Aviation Administration that show a 500% increase in unruly passenger incidents in 2020, following the induction of pandemic-related restrictions. The Transportation Security Administration also reported the number of guns confiscated at checkpoints doubled in 2020. Both of these statistics have only continued to tick upward in 2021.
Ellis hypothesizes in the piece that this data suggests an “underlying atmosphere of defiant opposition to government-imposed mandates.” Pandemic-related safety mandates have been a wildly politicized issue and, with no clear end to the pandemic in sight, it’s likely we’ll continue to see an increase in incidents involving volatile airline passengers.
Insurers must monitor these kinds of incidents, as they can lead to civil litigation and workers compensation claims.
You can view Clyde & Co.’s full list of predictions here.