According to a recent survey from Trusted Choice, nearly 3 in 5 independent agents said their customers are unaware of how legal system abuse impacts their premiums, deductibles and coverage options. (Credit: Adobe Stock)
Legal system abuse costs families in the U.S. an extra $5,000 per year, the Independent Insurance Agents & Brokers of America (the Big “I”) reports. To combat this, the organization has released a toolkit to help independent insurance agents educate their clients on how legal system abuse influences insurance costs.
Many of these inflated claims, the Big “I” says, are fueled by third-party litigation funding. This allows investors to fund a lawsuit in exchange for a large portion of the settlement. This adds billions to insurance costs.
According to a recent survey from Trusted Choice, nearly 3 in 5 independent agents said their customers are unaware of how legal system abuse impacts their premiums, deductibles and coverage options.
“Legal system abuse erodes the integrity of the U.S. court system and unfairly forces families and businesses to pay the price,” Charles Symington, Big “I” president & CEO, said in a release. “Yet few Americans know about how these predatory practices negatively impact their insurance rates. That's why it's so important for the independent agency channel to lead the way in educating their clients and communities about this issue, and the Big ‘I’ is providing the perfect resources to do just that."
Materials in the new toolkit include information about the costs of legal system abuse and how the plaintiff side in these lawsuits operates. It also includes advice on combating legal system abuse and provides agents with an assortment of social media graphics and posts that they can share to spread awareness.
“The Legal System Abuse Toolkit equips agents with the tools to explain a complex issue in simple and digestible ways, solidifying their role as a trusted advisor to their customers,” Kevin Brandt, executive director of Trusted Choice, said in a release. “We're committed to empowering Big ‘I’ members with the information they need on this issue so they can help customers understand and navigate this challenging insurance landscape.”
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