January 24, 2020

“Social Inflation” Is Fueling Litigation, Insurer Says

The CEO of Travelers Insurance said “social inflation” is driving litigation and higher jury verdicts, the Wall Street Journal reports.

Alan Schnitzer said social inflation “is an environmental issue driven primarily by a more aggressive plaintiffs’ bar” and is leading to more lawsuits against insurers and bigger asks from juries. Previous reporting from the Journal found these “nuclear verdicts,” or verdicts of $10 million or more, have skyrocketed in recent years and are leading to higher insurance rates.

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