social inflation News

What Is the No. 1 Emerging Litigation Risk? ‘Forever Chemicals,’ Says Praedicat

The top emerging litigation risk identified for the year ahead is PFAS, the so-called “forever chemicals” used in a wide variety of products such as Teflon, Scotchgard, food containers, firefighting foam and ski wax, said the co-founders of Praedicat, the …

Casualty Reinsurance Demand Rises in N. America Despite Hardening Primary Rates

Although there is a significant market correction taking place in the North American liability insurance market, demand for casualty reinsurance is increasing, said Chirag Shah, executive vice president, Casualty Reinsurance, at Willis Re. Low interest rates, economic volatility, social inflation …

Coronavirus Pandemic Will Have Severe Impact on Social Inflation: Fitch’s Mazzuoli

Claims inflation for the commercial liability business will increase through 2020, although it was accelerating even before the coronavirus pandemic hit. This trend, known as social inflation, has led the insurance industry to reduce capacity and increase prices to try …

Social Inflation, Low Interest Rates, Rising Catastrophes: Recipe for a Hard Market

Even before the coronavirus crisis hit, the re/insurance industry was in a period of significant rate hardening, which will likely continue over the next two years, or even longer, according to Munich Re. Such price increases became necessary after 10-plus …

How COVID-19 Court Lockdowns May Turn the Social Inflation Tide

Defense attorney Ellen Greiper reported receiving more than the usual number of phone calls from plaintiffs attorneys earlier this month, suggesting that the call dynamics could be signaling a COVID-driven change in social inflation trends. “I have had a flurry …

Travelers, W.R. Berkley CEOs Sound Alarm Over Coronavirus Lawsuits, Workers’ Comp

During an earnings conference call Tuesday, the leader of Travelers insurance alerted listeners to the possibility that frivolous lawsuits by plaintiffs lawyers could slow down the economic recovery from COVID-19 shutdowns. Alan Schnitzer, whose company reported net income of $600 …

How Social Inflation May Affect Coronavirus Business Interruption Losses

COVID-19 could produce a big increase in social inflation, according to A.M. Best. The reason: expectations that businesses will sue their insurers in an attempt to access their business interruption coverage for losses relating to the coronavirus pandemic. A.M. Best …

Bills in Congress, States Seek to Curb Litigation Funding

Lawmakers in three states and in Congress have introduced bills to impose more controls on litigation funding companies, which insurers contend are one of the factors leading to an increase in “nuclear verdicts” that have pushed up claims costs and …

Judge Triples Award for Hewlett Packard Against Quanta in Price-Fixing Scheme

HP Inc. was awarded $439 million in damages against Quanta Storage Inc. and its U.S. subsidiary after a federal judge tripled a jury’s 2019 award for damages caused by a widespread scheme to inflate the price of optical disk drives. …

The Lowdown: Innovation, Social Inflation, Hot Markets and More…

I recently had the benefit of attending the Society for Insurance Research 49th annual conference, where I was immersed in discussions about data, research, artificial intelligence, machine learning and more. This intimate conference included 200 attendees from 48 carriers and …