In a March PropertyCasualty360 article, Claims magazine Editor-in-Chief Patti Harman wrote that "the rise of social inflation in the insurance industry or nuclear verdicts, as they are known in the legal industry, is creating a chilling effect for insurers." The trend has picked up steam over the past decade since the introduction of the 'reptile theory,' with jury verdicts against insurers increasingly surpassing the $10 million mark.

Nuclear verdicts have become such an issue for insurers that many are employing data tools, such as artificial intelligence and predictive analytics, to decide whether to settle claims or take them to court.

Related: Litigating with insurers can be an endless game of chicken