fbpx
News
January 3, 2020

“Social Inflation” Has Led to a “Deteriorated” Litigation Environment, Insurer Says

Travelers Insurance company Chief Executive Officer Alan Schnitzer told the Wall Street Journal that a “challenging level of social inflation” has created a “tort environment that has deteriorated beyond our elevated expectation.”

The concept of social inflation, insurance executives told the Journal, has led to larger jury awards against big companies. According to the article, the frequency of verdicts worth at least $20 million was 300 percent higher last year than the annual average between 2001 and 2010. Insurance executives attributed this to changing social attitudes, and some economists have also linked the growth of litigation finance to the heightened verdict totals.

 

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Review Settings