2026-07-21 · Source: Risk & Insurance Magazine
Summary in 3 Points • Employment litigation is returning to pre-pandemic levels • AI in hiring processes raises potential bias concerns • New regulations are expanding litigation opportunities --- Mike Sisk of Philadelphia Insurance has highlighted several key factors influencing the professional liability landscape. Employment litigation is returning to pre-pandemic levels, driving a heightened focus on Employment Practices Liability Insurance (EPLI). Additionally, AI-driven workplace liability concerns are emerging, as artificial intelligence becomes more integrated into business operations, raising new questions about accountability and risk. These elements, combined with ongoing regulatory changes, are shaping a growing EPLI market that is anticipated to firm modestly by 2026. For the London Insurance Market, particularly in the EPLI line of business, these trends present both challenges and opportunities. The rise in employment litigation suggests a need for Lloyd's syndicates and other London underwriters to reassess their coverage offerings and pricing strategies to remain competitive. The integration of AI in workplaces necessitates the development of new products and services that address these novel risks. Furthermore, adapting to regulatory changes will be crucial for maintaining compliance and capitalising on the evolving market dynamics. As the EPLI market continues to grow, insurers must stay informed and agile to effectively navigate these shifts. Underwriters, brokers, and risk managers should consider several factors in response to these developments. Understanding the implications of increased litigation is essential for accurately assessing risk and setting premiums. The emergence of AI-driven liabilities requires a proactive approach to policy development and risk assessment, ensuring that coverage remains relevant and comprehensive. Additionally, staying abreast of regulatory changes will be vital for maintaining compliance and advising clients effectively. By addressing these considerations, insurance professionals can better position themselves to meet the demands of a changing EPLI market.
For the London Insurance Market, particularly in the EPLI line of business, these trends present both challenges and opportunities. The rise in employment litigation suggests a need for Lloyd's syndicates and other London underwriters to reassess their coverage offerings and pricing strategies to remain competitive. The integration of AI in workplaces necessitates the development of new products and services that address these novel risks.