Social Inflation is a topic that every client should have at the top of their list before, during and after the renewal process with their insurance carriers. Specifically, what guidance can an insurance carrier provide as to how an organization can address their potential exposure to social inflation? Are there specific steps a company can take that could mitigate their risk?
Unfortunately, as risks go, social inflation is one of the most elusive concepts to nail down quantitatively. That is in part because nuclear verdicts are so difficult to predict. Social Inflation has been a concern for our clients even before the pandemic. For example, .
Such jury awards make it extremely difficult to predict a jury’s reaction to a claim or to quantify a client’s potential exposure for most matters currently being litigated. Clients and carriers experienced a brief pause from such nuclear verdicts due to court closures and slowdowns during 2020 and much of 2021 because of the Covid pandemic. Even though this was a welcome reprieve from what appeared to be a concerning trend in jury verdicts pre-pandemic, these closures further strained an insurance company’s ability to accurately quantify and/or predict trends in verdicts. As such, it is likely that the insurance industry will look for more normalized trends before making any predictions in 2023, which can be unsettling for an insured who is attempting to put clarity and definition around what they can expect going forward.
The importance of the carrier relationship
The courts fully reopened toward the end of 2021 and the number and size of jury verdict awards recorded since that time make clear that Social Inflation will continue to be an ongoing issue for both clients and their insurance carriers. But, each client will have specific considerations as to how Social Inflation may impact their organizations and questions and strategies will vary based on individual businesses.
However, important to note is that you are not alone in this journey. Regardless of your experience with Social Inflation, a continuous dialogue and partnership with your insurance carriers, specifically their respective claim teams, is in our experience an effective way to help you manage your exposure to this concerning trend. Chances are an insurance carrier’s claims team has handled various matters involving issues related to Social Inflation and could provide helpful suggestions on how to help you potentially avoid some of the issues that proved problematic for other insureds.
Combatting social inflation together
As discussed above, Social inflation, is still a concern and continues to put undue pressure on insureds. As jury awards climb and societal pressures build, organizations rightfully are looking for ways to mitigate their risks. An open dialogue with your insurance carriers’ underwriting and claims teams is a great way to understand the current litigation environment and the issues surrounding it.
Your insurance carrier should be used as a resource for not only any claim you currently are handling but used as a tool to help you hopefully avoid any adverse effect on your business because of Social Inflation.
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US- and Canada-Issued 尤物视频Policies
In the US, the 九色视频insurance companies are: Catlin 尤物视频Company, Inc., Greenwich 尤物视频Company, Indian Harbor 尤物视频Company, XL 尤物视频America, Inc., XL Specialty 尤物视频Company and T.H.E. 尤物视频Company. In Canada, coverages are underwritten by XL Specialty 尤物视频Company - Canadian Branch and AXA 尤物视频Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA XL.
US domiciled insurance policies can be written by the following 九色视频surplus lines insurers: XL Catlin 尤物视频Company UK Limited, Syndicates managed by Catlin Underwriting Agencies Limited and Indian Harbor 尤物视频Company. Enquires from US residents should be directed to a local insurance agent or broker permitted to write business in the relevant state.
