Parametric Reputation Insurance

August 16, 2025

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Insurance for reputation: risk is a misalignment between what a company does and says to which stakeholders respond financially." 

“In practical terms, reputation risk reflects the misalignment between what a company does and says, what various stakeholders expect and how they respond in financially relevant ways.  The choices and response of those stakeholders — buying, investing, advocating, protesting, regulating, criticizing or leaving — carry consequences for a business and its operating environment, and sometimes entire industries. These are the under appreciated and tangible costs of reputation risks worth considering with more ongoing foresight”…and financial solutions like reputation insurance and board-level Side R protections.

August 4, 2025

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Mission-critical risks have become intertwined with boards' fiduciary duties … reputation can be a mission-critical risk for many companies, according to Nir Kossovsky, CEO of Steel City Re

Facebook recognized the reputational risk associated with its users’ privacy, and the shareholders homed in on this in their lawsuit. […] “Facebook is in the business of collecting user data, and if its reputation is damaged such that users lose their trust, it has the potential to damage the company’s and its investors’ long-term interest beyond the fines and penalties already paid” […] Mission-critical risks have become intertwined with boards’ fiduciary duties … reputation can be a mission-critical risk for many companies, according to Nir Kossovsky, CEO of Steel City Re, an insurance provider for reputational risk.

June 26, 2025

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Reputation risk management and governance with insurance is now a best practice recommended by governance and legal authorities.

Reputation risk management and governance with insurance is now a best practice recommended by governance and legal authorities.

Sophisticated prospective/captive owners intent on launching a captive, or jumpstarting an expanded remit for an existing captive, may successfully overcome corporate inertia with a parametric cover for reputation risk. Reputation insurance is now a recommended best practice—Principle #9—for Reputation Risk Governance according to recently released landmark guidelines from the DCRO Institute. Reputation insurance and insurers are also recognized for their value in reducing compliance risk in America Law Institute’s March 2025 release of Principles of the Law, Compliance and Enforcement for Organizations. 

June 25, 2025

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DCRO Institute Guiding Principles for Reputation Risk Governance: Essential principles for Boards of Directors

The Guiding Principles from the DCRO Institute is a governance tool—for directors navigating complexity, convergence, and scrutiny. More than crisis management, these principles are a call to clarity—to governing reputation as both a mission-critical asset and a potential source of material risk. These Principles help directors avoid claims of culpability from activists, institutional investors and litigators that can create costly personal reputation losses that are not covered by D&O liability insurance.

June 5, 2025

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Two recent lawsuits alleging director and officer liability have also called for board refreshment because of culpability.

Two recent lawsuits alleging director and officer liability have also called for board refreshment because of culpability. This emerging strategy to pressure directors to settle exposes directors to going-forward personal financial and reputation loss that is rarely covered with conventional liability insurance and is not yet widely covered with reputation insurance.

June 2, 2025

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Another Liability Lawsuit Seeks to Tarnish Directors’ Reputations

Plaintiffs suing Wells Fargo, pointing to firm’s history of reputation-damaging scandals, have asked the judge for permission to nominate three members of the bank’s board. Demands for board refreshment in shareholder lawsuits could become “a standard pressure strategy because it exposes directors to uncovered personal financial loss,” Kossovsky said, adding that such a loss would not be covered with conventional liability insurance because it is likely out of scope, “and not with parametric reputation insurance, because most boards still don’t carry it.”

April 28, 2025

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DEI-linked stock price drop lawsuits may lead to painful board exit conversations and impair board member's' personal reputations.

DEI-linked stock price drop lawsuits may lead to painful board exit conversations and impair board member’s’ personal reputations. “Companies are going to be scrutinized for the statements and positions that they’ve taken in these areas,” said Troy Harder. “I wouldn’t be surprised to see a lot more lawsuits like this.” […] “(H)ow companies monitor risk matters just as much as how they disclose it,” Jennifer Wu, an assistant professor of finance at the University at Buffalo’s School of Management, told Agenda. That’s why Steel City Re developed a comprehensive reputation risk monitoring, management, and insurance solution.

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