The phenomenon known as “social inflation” accounted for $20 billion in commercial auto liability claims between 2010 and 2019, a new study by Triple-I and the Casualty Actuarial Society (CAS) finds. Social inflation isn’t a new term. Warren Buffett used it in the 1970s to describe “a broadening definition by society and juries of what… Continue reading Triple-I, CAS Quantify Social Inflation’s Impact on Commercial Auto
Tag: social inflation
Los Angeles Jury Awards Fired Insurance Executive $155 Million
A Los Angeles Superior Court jury handed a fired insurance company executive a verdict totaling $155.4 million – including $150 million in punitive damages. Plaintiff Andrew Rudnicki worked for Farmers Insurance Exchange as a senior executive and lawyer in its Claims Litigation division. Farmers claimed it terminated Rudnicki’s employment after he made sexist and inappropriate… Continue reading Los Angeles Jury Awards Fired Insurance Executive $155 Million
Swiss Re Says Third-Party Litigation Funding Drives Social Inflation, Should Be Regulated
Swiss Re in a recent report warned that third-party litigation finance (TPLF) is a major contributor to the trend of social inflation in the United States, which is affecting the price and availability of many insurance policies. According to Swiss Re, the United States is the epicenter of the world’s TPLF industry, in which investors… Continue reading Swiss Re Says Third-Party Litigation Funding Drives Social Inflation, Should Be Regulated
Multi-Million-Dollar Award in CVS Shooting Continues Nuclear Verdict Trend
A Georgia court upheld a nearly $43 million verdict against CVS after a man was shot in a parking lot at one of the pharmacy’s Atlanta locations. On Nov. 1, the state Court of Appeals refused to overturn the $42.75 million verdict in favor of James Carmichael, who was shot multiple times by an unknown… Continue reading Multi-Million-Dollar Award in CVS Shooting Continues Nuclear Verdict Trend
Commercial Auto Insurers Face Inflation and Loss Severity, Impacting Positive Growth
According to a new AM Best report, a return to pre-pandemic norms in the nonstandard auto insurance segment in the United States, with higher loss-cost pressures, elevated inflation, and supply chain issues, may counteract recent positive market trends. According to Best’s Market Segment Report, “Inflation and Loss Severity Counteract Tailwind from Pandemic Recovery for Nonstandard… Continue reading Commercial Auto Insurers Face Inflation and Loss Severity, Impacting Positive Growth
AM Best Maintains U.S. Commercial Lines Insurance Outlook at Negative
AM Best has maintained a market segment outlook of negative on the U.S. commercial lines industry for 2021, citing the uncertainty regarding the impact of COVID-19 and its economic fallout, along with the re-emergence of social inflation as courts reopen, as well as other factors that were adversely impacting the segment prior to the pandemic.… Continue reading AM Best Maintains U.S. Commercial Lines Insurance Outlook at Negative
AM Best Maintains Global Reinsurance Market Outlook at Stable
AM Best has maintained its market segment outlook on the global reinsurance industry at stable for 2021, citing factors that include positive pricing momentum, combined with tighter terms and conditions, offset somewhat by uncertainty with regard to claims reserve development associated with previous years’ property catastrophe events; social inflation; and more recently, business interruption and… Continue reading AM Best Maintains Global Reinsurance Market Outlook at Stable
Traffic Eases Amid Pandemic, but Trucking Insurance Costs Still on Upward Trajectory
Reduced highway traffic during the ongoing COVID-19 crisis has lowered the risk of crashes, but this silver lining of the pandemic has provided only a temporary reprieve for trucking companies that have seen escalating insurance costs in recent years. When the coronavirus outbreak first took hold in North America, miles traveled by the general public… Continue reading Traffic Eases Amid Pandemic, but Trucking Insurance Costs Still on Upward Trajectory
Companies Face Five Liability Risk Trends in the Face of COVID-19: Allianz
Liability exposures for companies around the world are increasing. Factors such as rising litigation, collective redress and large court verdicts, costly and frequent recalls in the automotive and food sectors, the disruptive impact of civil unrest and riots in a growing number of countries, and environmental concerns such as indoor air quality and higher fines… Continue reading Companies Face Five Liability Risk Trends in the Face of COVID-19: Allianz