Actuaries: Social Inflation Increased Commercial Auto Claim Costs by $20B Over 10 Years

By | February 24, 2022

  • February 24, 2022 at 1:59 pm
    jimbo says:
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    Love how they say social inflation instead of legal costs.

    Def. “Social inflation” is an important issue to understand, as it has a direct effect on claims-related losses and insurance costs, especially for businesses. The term refers to rising litigation costs and their impact on insurers’ claim payouts, loss ratios and, ultimately, how much policyholders pay for coverage.

  • February 24, 2022 at 2:58 pm
    Tiger88 says:
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    Not being cynical but $20 billion sounds a little short of the real impact of this insidious problem. It has destroyed the Florida homeowners business completely.

  • February 25, 2022 at 10:28 am
    Chris says:
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    “______________ recovered $X for me after I was rear ended”
    *Results my vary*

  • February 25, 2022 at 12:21 pm
    Rich Bren says:
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    ‘Social inflation’ describes increased insurance losses resulting from the growing phenomena of for-profit litigation funders, higher jury awards, more generous workers’ compensation claims, legislated compensation increases, and new tort and negligence concepts.
    -rb

  • February 25, 2022 at 4:35 pm
    Hector Projector says:
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    I guess we’ll just have to wait until the California DOI rate filing templates add a social inflation trend factor.



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