Social inflation remains a top challenge facing insurers in the realm of claims. Social inflation is, at its core, a shift in societal mentality; and is often driven by generational perceptions of fairness, including how jurors view litigants and their ability to absorb the attendant risk and cost of litigation.
With a changing demographic (jurors) motivated and informed by new experiences, access to information, and evolving views on social and economic matters, the potential for nuclear verdicts driven by social inflation continues to impact the foundation of litigation and, consequently, claims.