A growing body of evidence points to the way legal system abuse — or the misuse or exploitation of the legal system in ways that drive excessive litigation, inflated damages, or unfair outcomes — inflates insurance rates by exaggerating claim payouts, increasing extreme verdicts, and ultimately forcing insurers to raise premiums, limit coverage or exit difficult markets.
These urgent issues facing the insurance sector inform the agenda and peer-to-peer networking that happens at PropertyCasualty360's Complex Claims & Litigation Forum happening March 9-11, 2026 at the Red Rock Resort & Spa in Las Vegas.
Consider the September 2025 report from Swiss Re that outlines how "skyrocketing legal payouts" in the U.S. trickle down to everyday consumers. The report pointed to a fundamental shift in public sentiment as more people get comfortable with idea of pursuing legal action instead of other settlement avenues: Fifty-six percent of survey respondents in 2025 believed there were too many lawsuits in the U.S. compared to 90% in 2016.
Some of the report's other findings include:
- Injury severity, not company size, is the main factor driving juror sympathy and high compensation expectations.
- Americans increasingly support litigation and nuclear verdicts regardless of whether corporations are at fault.
- Approximately 25% of respondents would support these verdicts even against small and mid-sized businesses.
- The growing litigiousness is supported not just by facts but also psychology. Plaintiff anchoring and setting high initial demands greatly skews judgments upward, especially when unchallenged. And, Younger, lower-income jurors are significantly more supportive of litigation and larger awards.
- Increased litigation risks raise costs for everyone and can hurt families and small businesses by driving up the costs and accessibility of protection.
"We're seeing growing strain on the civil justice system, with more lawsuits yielding damages that often outpace the actual harm," Monica Ningen, CEO of P&C Reinsurance US at Swiss Re said in a statement about the report. "Jury awards in the tens of millions are becoming more frequent, shaped by emotion, not just evidence. This trend isn't limited to large corporations. Small and mid-sized businesses face similar outcomes when serious injuries are involved."
Dive deeper into the issues
PropertyCasualty360's Complex Claims & Litigation Forum is where insurance leaders, claims innovators, and legal experts come together to tackle business challenges and strategize solutions.
This year's keynote speakers include Insurance Information Institute CEO Sean Kevelighan and renowned insurance litigators Bob Tyson and Brian Panish, who will share insights from the plaintiff's table. The event also will host the first Future Claims Leaders recognition to spotlight up-and-coming claims professionals who are helping shape the future of insurance.
Don't miss the opportunity to help shape the industry's response to legal system abuse. Register and plan to attend the 2026 Complex Claims & Litigation Forum!
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