In the realm of insurance’s impact on Intellectual Property (IP) litigation, Stephen Kyriacou Jr., a managing director and senior lawyer in Aon’s Litigation Risk Group, continues to carve his own path. Kyriacou, the pioneer of judgment preservation insurance, began his work in the litigation and contingent risk insurance market in 2019 and has twice been awarded the “Power Broker” designation by Risk & Insurance Magazine.
Over the past 18 months, the litigation and contingent risk insurance market has seen rampant “hockey stick” growth. Insurance brokers are continually seeking formal coverage quotes from insurers, with Aon’s submission flow being an excellent indicator of market activity. The submission flow across the board has increased significantly, with leading insurers reporting they anticipate receiving between 100 and 120 submissions for 2023.
The market’s growth has also led to more insurers writing coverage, previous excess-only insurers offering primary coverage on deals, and an insurgence of litigation and contingent risk-focused underwriters at insurance companies. These shifts are helping to facilitate more complex and inventive deals that may have previously been passed over due to a lack of underwriting expertise.
At Aon, the team has managed to close two judgment preservation insurance policies exceeding $500 million, indicating increased insurer interest in smaller, sub-$50 million policies. The hard work of the team is also leading to the rise of insurance as a tool to ringfence contingent risks, helping to release capital tied up due to pending litigations, disputes, or regulatory inquiries.
In the upcoming article, we will delve into the challenges that have emerged in this space and Kyriacou’s perspective on the future of this sector of the profession. Refer to his past conversation, where he had given a comprehensive primer on the litigation and contingent risk insurance market in two parts – Part I and Part II.