As 'Social Inflation' Helps Fuel 'Nuclear' Verdicts, Insurers Address 'Legal System Abuse'
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.
James Whittle with the American Property Casualty Insurance Association believes nuclear verdicts fueled, in part, by social inflation, or the belief that large corporations are “bad actors with deep pockets,” can lead to “legal system abuse.”
While speaking with ALM’s PropertyCasualty360 Group Chief Editor Elana Ashanti Jefferson, Whittle detailed how a recent uptick in “runaway verdicts” reflects what he considered the growing power of the plaintiff’s bar to influence juries and secure record-setting wins. Whittle outlines why the trend has far-reaching implications for the insurance industry, which he said often shoulders the cost of such lawsuits along with the verdicts and settlements they produce.
In this podcast episode, Whittle also explains implications for the average consumer, noting mounting lawsuit expenses as one of the reasons that insurance rates are inching ever higher. Whittle adds that insurance carriers must defend against their fair share of lawsuits.
Listen to the podcast above or subscribe on Apple Podcasts, Google Play, Spotify or Libsyn.