The Unlikely Pressure for Accountability: The Insurance Industry’s Role in Social Change

Document Type

Article

Publication Title

Texas Journal on Civil Liberties & Civil Rights

Journal Abbreviation

Tex. J. on C.L. & C.R.

Abstract

The summer of 2020 witnessed a national reckoning: the murder of George Floyd and the resulting unprecedented Black Lives Matter (BLM) protests. As the BLM movement gained unsurpassed traction, corporate America jumped to show support: Nearly 70% of the 500 largest companies made statements in support of racial justice and more than a third provided financial donations to racial justice organizations/causes. Countless companies made public promises regarding their commitment to diversity, equity, inclusion, and justice (DEIJ) within their organizations. However, companies have largely failed to live up to those promises. The result—a frenzy of diversity driven derivative suits against boards and officers for that failure. Although Director and Officer (D&O) insurance has insulated board and officer’s personal assets, the D&O insurance industry has taken notice of the enduring nature of diversity driven derivative suits. Along with social unrest comes the D&O insurer’s unrest; as premiums increase, limits are lowered, and coverage is dropped, the possibility of a new catalyst for accountability arises—the D&O insurance industry.

First Page

139

Last Page

177

Publication Date

2022

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