Shareholder Class Actions Shaping the Future of Australia’s D&O Insurance Landscape

With the average number of securities class action claims lodged per year rising by four-folds over the last 10 years – equivalent to a 300% increase¹, Australia has become the most likely jurisdiction outside of the United States where a corporation may face significant class action litigation.²

The rise in shareholder activism, surge in litigation funding, increased availability and flow of information have all contributed to shareholder class actions becoming an established element of the Australian legal landscape.  

The surge in shareholder class actions has notably made its mark on the Directors and Officers Liability insurance market and the management of such insurance programs in Australia. The future of the D&O market and corporate Australia hang in balance as availability dwindle and cost surge for D&O insurance products.

In this article, we examine some of the drivers behind the rise in shareholder class actions, their impact on both insurers and insureds, and some practical tips for the board.

Shareholder Class Actions Interactive Experience

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_{1. Marsh, Directors & Officers Liability Insurance Market Update, May 2018}

_{2. Allens, Shareholder Class Actions in Australia, February 2017}