Social Inflation: Navigating the evolving claims environment
Author: Darren Pain
In recent years, the number of liability claims pursued has been increasing along with the amount of compensation awarded to plaintiffs. This is most acute in the U.S. but starting to spread to other jurisdictions as well. COVID-19 only adds to the uncertainty about the future claims and litigation environment.
This report examines the changes in the litigation landscape that are driving social inflation, urging insurers to safeguard their role in protecting people and businesses against liability risk, namely by strengthening their claims management processes, focusing on better understanding and measuring new liability exposures, and prioritising new products and risk-absorbing mechanisms.