Insurers’ exposure to the global financial crisis is being shielded by the length and complexity of class action claims in the US, a Moody’s report claims.

While directors’ and officers’ (D&O) liability claims are “front and centre” concerns for insurers amid a surge in securities class actions, payments are likely to be limited as liability for each case is allocated.

Moody’s VP Alan Murray says the “challenge of attributing liability given the complexity of the financial crisis and its multiple contributing causes” works in insurers’ favour.

Precedent-setting court decisions in recent years have clarified standards of proof, and will “likely mitigate total insured losses and the percentage of cases that reach the settlement or adjudication stage”, he said.

But Mr Murray says future enforcement action by the Securities and Exchange Commission against fraudsters could still hurt insurers.

“External influences, like the US Government’s response to the financial crisis, will to a large degree impact the potential losses D&O insurers will have to deal with,” he said. “This is likely to be a lengthy process.”

The warnings from Moody’s follow similar predictions from Zurich D&O liability expert Paul Schiavone, who told a conference in April that threats facing Australian directors and officers were growing amid shareholder activism and a clampdown by financial regulators in foreign jurisdictions.

Mr Schiavone described Australia as the “most challenging D&O market internationally” due to its high cost of claims and relatively low premiums.