March 29, 2022

Most Financial Institutions in Ireland will have their own In-House legal team/Counsel. However, there are often circumstances where they will need to work very closely with their broker or enter into legal/insurance claims management arrangements on the insurance side given the range of financial and professional lines claims that can arise against them.

Financial Institutions need a suite of insurance cover as they are particularly vulnerable to such a variety of insurance claims ranging from civil liability, professional liability, Directors & Officers, Allegations of Fraud, Funds etc.

We have seen many large-scale claims in Ireland against large Financial Institutions and banks in areas involving funds and investment. In the current economic climate, it remains vital that the appropriate advisers within the chain come together to embrace the most sensible approach.

Although Ireland does not yet have the procedural mechanism in place for the equivalent of “Class Actions”, we have seen various test type court cases before the Commercial Courts involving an outcome for many litigants. Given the scale of the services provided by Financial Institutions and banks there is always the possibility of large-scale action against them. It is likely that there may well be developments in the coming years in Ireland relating the ability to lodge “Class actions”. This is an area that many such Institutions should keep an eye on and stay aware through their internal insurance managers, brokers and legal team/advisors.