Compounding these risk factors for businesses, particularly when allegations lead to litigation, is shifting public sentiment. The trend of social inflation, particularly in the US, whereby jury sentiment towards the plaintiff results in much higher than anticipated damages awards, means that litigation outcomes and costs are difficult to predict.
The healthcare sector in particular is feeling the squeeze of stronger jury sentiment towards claimants, with more than a third (34%)[1] of executives surveyed reporting they do not feel prepared to face escalating boardroom risks. As hospitals struggle to secure the level of insurance they require for professional indemnity, the risk management industry has a major role to play in ensuring they are aware of the risks and have all the appropriate risk management mechanisms in place.