Litigation

Insurers should watch for several factors that could be red flags for fraudulent claims: opportunity, incentive and rationalization.

The event will focus on helping insurers prevent, prepare and prevail when handling a range of complex claims.

A key issue raised had to do with whether damages were consequential or direct — something not well defined in Texas caselaw.

Allianz Global Risks US Insurance Co. argued the claims at issue do not meet the policy definition of 'securities claims.'

While less than 1% of cases end up in trial, the percentage of insurance claims that went into litigation rose 47% over a four-year period.

The case law on this topic is divergent, a trend that will likely continue with different courts applying different interpretations of insurance policies.