Social Inflation: Defining and Mitigating an Emerging Risk
Considered a significant emerging risk for the insurance industry, social inflation refers to the trend of rising insurance costs resulting from increased litigation, plaintiff-friendly judgements and higher jury awards, which are ultimately fueled by social trends.1 Specifically, anti-corporate sentiment and significantly increased jury awards against corporate policyholders (i.e. “nuclear verdicts”). More broadly, social inflation is the term used to describe growth in liability risks and costs related to litigation trends.2 In 2019, there were 74 class action settlements totaling $2 billion and four mega-settlements greater than $100 million, representing 45% of all settlement dollars …
https://www.epicbrokers.com/insights/social-inflation-defining-and-mitigating-an-emerging-risk/