International law firm DAC Beachcroft has today launched its 2025 predictions for the global insurance market with the impact of social issues, in the UK and internationally, featuring as a dominant theme.
The 150+ predictions not only highlight potential opportunities and challenges facing the insurance industry in the year ahead but raise broader social issues that materially affect the public at large. They can be accessed on Informed Insurance, the home of DAC Beachcroft's thought leadership for the insurance industry: https://dacb.law/insurance-predictions-2025.
"Looking at our predictions through an ESG lens over the last few years, we have seen the spotlight move from environmental to governance issues," explains Helen Faulkner, Global Head of Insurance at DAC Beachcroft. "As we enter 2025, the weighting of predictions this year underlines an emphasis on social issues."
Rt Hon Sir Robert Buckland KBE KC, former Lord High Chancellor and Secretary for State for Justice, a consultant at DAC Beachcroft, comments, "I am delighted to see the ESG pendulum at last swinging towards social issues. As DAC Beachcroft's predictions for 2025 make clear, businesses should continue to focus on neurodiversity.
"It is not just a matter of social responsibility but a key opportunity to access diverse thinking and untapped talent for the industry. While there may now be better awareness around 'green-washing', businesses should similarly be cautious to avoid both 'social-washing' (exaggerating their diversity credentials) and its backlash counterpart 'social-hushing' (keeping silent on positive initiatives) as they responsibly and transparently address neurodiversity issues in the year ahead."
Among the social issues covered in the predictions are: climate activist litigation; climate change driving political unrest; Martyn's Law protecting the public from terrorist threat; the duty of candour proposed in the Hillsborough Law; increasing focus on neurodiversity; wider challenges to diversity and inclusion from AI; the need for Chief AI Officers; social inflation; and intensifying biometric class actions.
Helen Faulkner adds, "These examples serve as a good reminder of the ever more evident interconnectivity of risks and solutions. They also illustrate that you cannot put E, S and G in discrete silos, as many of the issues combine two or all three of those topics."
On the duty of candour, Sir Robert Buckland notes, "The duty of candour could potentially have a dramatic effect on the risk profile of public bodies. Insurers need to engage with government on this vitally important question, sooner rather than later, to help ensure any legislation achieves its desired outcome, without unforeseen and undesirable side effects."
The full suite of predictions is categorised under six new themes on Informed Insurance:
The predictions are also broken down under 20 different lines of insurance business, and include the Bermuda Market for the first time. International jurisdictions include Asia, Europe and The Americas.
