Insurance broker and risk advisory firm Marsh has launched a directors and officers (D&O) liability insurance initiative to recognise US-based clients with robust and resilient ESG frameworks. As a global captive manager, Marsh provides a variety of in-house actuarial services, including certification of loss reserves, an initial captive feasibility study, and due diligence reviews. Marsh also provides management services (ranging strategic management, accounting, claims management and regulatory compliance) and advisory services (encompassing feasibility studies, strategic reviews, domiciles reviews and exit strategy studies) for its captive clients. The D&O initiative is introduced as ESG-related activism and litigation takes on growing importance in the context of a changing global regulatory environment. Participating Marsh clients will collaborate with international law firms (including Norton Rose Fulbright and Orrick, Herrington & Sutcliffe) to complete an independent review and evaluation of their ESG framework. Clients will then be taken into consideration for preferred D&O coverage terms and conditions on specific ESG-related exposures, including climate change disclosures and representations, subject to underwriting. The policies will be provided by four participating D&O carriers: American International Group, Berkshire Hathaway Speciality Insurance, Sompo International, and Zurich North America. Maureen Gorman, managing director at Marsh’s US financial and professional liability practice, explains: “As clients continue to invest in ESG initiatives, it is right that they be recognised as a better risk by underwriters.” “By working with these select law firms, we are ensuring clients have access to leading independent ESG expertise that can help validate and elevate their ESG efforts, becoming eligible for more favourable coverage.” Amy Barnes, head of climate and sustainability strategy at Marsh, adds: “Marsh is proud to introduce D&O coverage enhancements that recognise organisations taking a proactive approach to managing the risks associated with ESG, including the transition to a low-carbon economy.” Barnes concludes that Marsh plans to replicate the initiative in London and other parts of the world over the coming months.
