Juries share a common view that defendants can pay out larger sums of money to a plaintiff. Much of this is based around daily exposure to larger sum verdicts in the media, further desensitizing the public and making it appear more common and acceptable. (Photo: niroworld/Shutterstock)
Social inflation is a term you frequently hear in risk management these days. It refers to the phenomenon of a general anti-establishment sentiment that exists publicly today, which has a far-reaching impact on businesses and the insurance industry as a whole. Last year, "Out Front Ideas with Kimberly and Mark" discussed the impacts of social inflation with a panel of experts. Our guests were:
- Mark Bennett, vice president of large casualty claims at Safety National
- Oliver Krejs, partner at Taylor Anderson
- Aref Jabbour, senior consultant at Trial Behavior Consulting
- Andrew Pauley, government affairs counsel at the National Association of Mutual Insurance Companies (NAMIC)
Jury trials
While only 5% of lawsuits ever result in a jury trial, knowing the potential outcome for a defendant shapes the future of underwriting and pricing risks in the industry. Because of its impact on rising costs, it is critical to explore what is causing the public to shift sympathy in support of the plaintiff.
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