The trend known as 'social inflation' reflects a societal shift in the ideas about who should absorb risk. In general, social inflation drives higher insurer claim payouts and loss ratios. (iStock)
Social inflation accounted for between $2.4 billion and $3.5 billion of all medical malpractice losses between 2011 and 2021, according to new research released by The Doctors Company, the largest physician-owned medical malpractice insurer in the U.S.
"Our research shows that the pace of settlements larger than $1 million has accelerated, and large settlements are a significant driver of social inflation," Robert E. White, Jr., president of The Doctors Company parent corporation TDC Group said in a prepared statement. The research further indicated that the amount of medical malpractice losses attributed to social inflation during the study period accounted for between 8% and 11% of all losses in that vertical.
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