Debevoise & Plimpton’s 2022 Year-In-Review and Outlook for 2023: Insurance Coverage Disputes and Trends

(l-r) Eric Dinallo, Partner and Chair of the Insurance Regulatory Practice; Marshal Bozzo, Counsel; Michael Gramer, Associate; and Samuel Rosh, Associate, with Debevoise & Plimpton. Courtesy photos.

For the U.S. insurance industry, 2022 was a demanding year. Insurers and insureds alike face a multitude of challenges, including natural disasters (such as Hurricane Ian), the war in Ukraine and related seizures and sanctions, an increase in cybersecurity attacks, including ransomware, increased interest rates shifting investment opportunities, novel theories of liability from the plaintiffs’ bar contributing to social inflation, and regulatory developments. We are continuing to watch litigation of COVID-19 pandemic-related claims, where the insurance industry has continued to prevail in most cases under business interruption policies, though several more cases remain pending.

Looking ahead to 2023, we expect increasing focus on how insurers use artificial intelligence (AI) to underwrite and price insurance policies, examine claim trends, and for claims handling and settlements. We also expect continued litigation over whether or to what extent insurers must cover losses arising from cyberattacks.