One of the factors driving social inflation is the phenomena of third-party litigation funding and litigation lending, according to Triple-I, which noted lawsuit funding from hedge funds and other financial third parties has become a $17 billion industry worldwide. (Credit: jamesteohart/Adobe Stock)
Social inflation alone was responsible for commercial auto claim payouts increasing by more than $20 billion between 2010-2019, according to a study by the Insurance Information Institute (Triple-I) and the Casualty Actuarial Society.
Further, legal costs make up 40% of losses in commercial auto, according to CLARA Analytics, Inc. During 2018, the average verdict in lawsuits exceeding $1 million and involving a truck accident was $22.3 million.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
