Insurance companies are the number one target for civil litigation, far exceeding any other industry, according to a study produced by the Fulbright Jaworski law firm in Washington.
The concern's research for 2006 found that there are approximately 1,700 cases pending by the average insurer, more than five times the 364 average recorded by industry, the next highest sector.
Retail averaged 333 cases and financial services averaged 300, the law firm found.
Its report said insurers also appear to be involved in cases with the highest stakes. In fact, 17 percent of carriers reported they had more than 50 suits pending with at least $20 million at issue.
Fulbright found the average litigation expenditure for the 311 U.S. companies participating in its study was $12 million. The report said the figure did not include ultimate case settlement or judgment payments.
According to Fulbright, the $12 million figure represents more than 70 percent of overall legal spending by the average American business.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
