The LMA Academy’s Foundation for Underwriting Terrorism Insurance programme provides foundational knowledge for junior underwriters wanting to learn more about this class of business. The programme, developed by this committee, covers core concepts, market practices, wordings and global risk trends.

Mental health questionnaires assess the mental health risk associated with key individuals (for example, performers, speakers, athletes) whose health is critical to an event’s success. They help underwriters evaluate risk, ensuring appropriate coverage terms while complying with data protection regulations in each jurisdiction.

Strike, Riot, and Civil Commotion poses a significant challenge to the market due to its unpredictability, political sensitivity and potential for large-scale disruption. Coverage is often excluded or limited, particularly for events in politically or socially volatile regions.

The issue of CrowdStrike reflects the growing concern around cyber threats, particularly how they can impact event cancellation, ticketing platforms, venue systems and the non-appearance of key individuals. This has led the committee to review and refine wordings to achieve clarity around what is and isn’t included.

Communicable disease and Covid exclusions limit cover for event cancellations due to outbreaks. Introduced after massive pandemic losses, these exclusions leave insureds exposed and have caused uncertainty in the market. The Contingency Committee continues to review this issue.

The Perrigo judgment in Ireland emphasised the importance of aggregation clauses and specific matter exclusions in D&O insurance. In light of this, the committee continues to engage in discussions on the implications of these clauses, inviting legal experts to provide insights and explore their impact on coverage and claims.

The committee has been reviewing profit commission clauses, with members noting a trend of clauses lacking clawback provisions. As this is an area of growing interest and relevance, a general briefing session is being arranged to support member awareness and understanding of current approaches in the market.

The Shell derivative action decision case highlights the increasing legal scrutiny directors may face over climate-related governance and the evolving landscape of ESG litigation risks.

ESG is reshaping the D&O risk landscape, exposing directors to greater scrutiny, litigation and personal liability. For insurers, it introduces uncertainty, legal complexity and challenges in the underwriting process. As expectations around corporate responsibility rise, D&O underwriters must integrate ESG risk into their assessment models.

The E&O Committee regularly hosts guest speakers from legal and claims backgrounds to provide insights into emerging risks and industry trends. These sessions support the committee’s commitment to continuous learning and help ensure the market remains informed, prepared and responsive to evolving challenges.

Litigation trends in the US insurance market are evolving rapidly, driven by social inflation, nuclear verdicts and changes in technology and regulation. These trends directly impact claims frequency, severity and underwriting strategy for E&O insurers operating in the US.

A Cyber Working Group was established to review LMA5478 and LMA5479, following instances where cyber-related claims were brought under PI policies for alleged breaches of professional services. These cases raised concerns about the effectiveness of current clause wordings in reflecting underwriting intent. The group aims to ensure that cyber risks are either clearly covered or excluded, as intended by underwriters. 

The group have now published LMA5478B, an update to LMA5478A. This clause forms part of a suite of three Financial Institutions PI cyber clauses:

• LMA5477A: Cyber Risks Endorsement
• LMA5478B: Cyber Risks Endorsement – Limited Exclusion
• LMA5479A: Cyber and Data Exclusion

Please note that LMA5478A has been archived.

Class action lawsuits can lead to large-scale claims that involve numerous plaintiffs, potentially leading to high pay-outs for insurers. The committee is continually reviewing policy terms and coverage scenarios to address the unique challenges posed by class action lawsuits.

Litigation trends in financial institutions insurance are increasingly complex, global and fast-evolving. They reflect the shifting regulatory environment, technological risks and greater scrutiny from shareholders, regulators and customers.

The committee receives regular updates from legal representatives on key topics. Recent areas of interest include motor finance litigation, batch clauses and computer crime wordings, providing valuable insights into evolving legal and insurance challenges in these sectors.

Construction PI insolvencies pose a major threat to the professional indemnity insurance market due to non-recoverable claims, heightened post-insolvency risks and legacy liabilities. This has reshaped underwriting appetite, particularly for high-risk construction sectors, and is an ongoing issue that the committee continues to monitor.

The Building Safety Act 2022 and the Grenfell Tower Inquiry have had a significant impact on PI insurance. For underwriters, this meant heightened exposure to historic claims, especially for cladding and fire safety. This has led to stricter underwriting, reduced appetite, higher premiums, exclusions for high-risk work and a greater focus on run-off cover and risk selection in the construction PI market.

The committee has a legal representative who updates on key legal trends. Recent topics of interest include prior known circumstances exclusions and ​The Court of Appeal’s judgement in Lonham Group Ltd v. Scotbeef Ltd [2025] EWCA Civ 203, which provides clarification on the application of the Insurance Act 2015, particularly concerning the classification of policy terms as warranties or representations.

The AI working group published a report in 2025 examining how artificial intelligence (AI) can impact the international errors and omissions (E&O) market. The report explores both the opportunities and risks presented by the rapid adoption of generative AI (GenAI) across professional services sectors.

The committee is currently addressing the issue of obsolescence, investigating ways to mitigate the effects of outdated equipment within industry. With technological advancements and the push towards more sustainable solutions, the committee is dedicated to staying ahead of emerging trends and ensuring that LMA members are equipped to navigate these changes effectively.

Insurers are important advocates of animal safety and welfare. The committee continues to engage with veterinary organisations and other stakeholders to ensure that animal welfare remains a top priority. The committee is currently review contractual language in model wordings relating to animal euthanasia and liaising with leading equine veterinary bodies to discuss the issues.

The committee is conducting a review of equine and livestock wordings to stay ahead of evolving regulations and emerging risks. These updates will also ensure coverage reflects technological advancements and new risk management practices, keeping policies relevant and effective in managing current and future risks.

Collaboration with the veterinary industry offers expert insight into animal health, ensuring market practitioners stay aligned with the latest veterinary practices. The committee works closely with veterinary professionals to enhance risk assessment accuracy, refine policy development and improve the effectiveness of claims management.

The Cyber Reinsurance Sub-Committee is a sub-committee of the NACR, dealing with cyber reinsurance treaty matters from an LMA committee perspective. The panel has addressed recent issues, such as the Y5433 Lloyd’s bulletin on state-backed cyber war compliance.

For reinsurers, these risks are complex and long-tail in nature, making it essential to closely monitor trends, ensure adequate pricing and manage exposure across diverse jurisdictions. As legal and medical landscapes evolve, so too must the strategies used to underwrite and structure risks in these classes.

The panel maintains relations with the National Council on Compensation Insurance – the most important rating and data bureau on workers compensation claims in the USA – and the Workers Compensation Insurance Rating Bureau (WCIRB) of California. This is important as the risk and the sector develops, judicial and regulatory changes are implemented and as medical technology and practice improve survivability and long-term care.

The panel stays ahead of complex regulatory developments in the US, where each state has its own legal framework, claims environment and approach to various issues. The variability between states demands careful underwriting and close monitoring to maintain performance. The panel is in regular dialogue with Lloyd’s America’s legal and regulatory team to ensure they are informed on the latest developments.

Exposure management in international casualty reinsurance is inherently complex due to the unpredictable and long-term nature of the risks. Managing it effectively requires robust data, global legal insight, effective underwriting and constant vigilance. The panel works closely with the LMA’s Exposure Management Working Group’s (EMWG) casualty panel to contribute to thinking and Lloyd’s RDS discussions.

The committee’s recent review of US consumer wordings aligns with broader initiatives aimed at promoting clearer and more customer-centric insurance documentation. The committee is undertaking a series of projects to update older wordings, with the goal of supporting the market with clear, compliant and accessible model wordings.

The committee continues to discuss the administration of group personal accident business, to assist the market in meeting the regulatory requirements.