Paulita Pike Discusses AI's Impact on D&O Insurance in BoardIQ

In a BoardIQ article, asset management partner Paulita Pike discussed the evolving landscape of directors and officers (D&O) insurance in the context of artificial intelligence (AI) and its implications for mutual fund boards.

Paulita highlighted the potential impact of AI on policy pricing rather than structural policy changes, stating, "The use of AI could impact how much directors are charged for their D&O policies." She emphasized that the types of claims directors face are unlikely to change significantly due to AI. "D&O policies broadly cover lawsuits related to securities law and fiduciary duties, which differ from the types of claims brought against, say, investment advisors," she explained. "So I think that the coverage for directors under D&O policies is likely not to change a great deal, because the kinds of claims that would be brought against the director will continue to be securities-law based claims."