In this week's Legal Speak episode, James Whittle with the American Property Casualty Insurance Association dives into the impact of what the organization has dubbed "legal system abuse" as social inflation—the belief that large corporations are "bad actors with deep pockets"—helps fuel "nuclear" verdicts.

The 2018 incident caused several pelvic fractures and premature birth of the infant. The lawsuit alleges defective design, negligence and consumer fraud.

Declining premium revenues, lower rates, underwriting volatility and litigation led to this hardening, Fitch Ratings says.