Kathmandu. The abuse of the global legal system (LSA) has significantly affected liability insurance.
The new study was conducted by the Insurance Information Institute (Triple-I), an organization that provides data and analysis on insurance issues, and the Casualty Actuarial Society (CAS), a professional group of actuaries specializing in property and casualty insurance. The study found that these factors pushed the liability insurance deficit between $231.6 billion and $281.2 billion over the past decade. That’s much higher than what standard economic inflation can explain.
The study, titled “The Impact of Inflation on Liability Insurance: 2015-2024,” revealed that factors such as large jury awards, case financing, and changing legal practices have significantly increased claims costs and defense expenses in personal auto, commercial auto, other liability incidents, and product liability incident insurance lines.
“This analysis shows that the significant increase in liability insurance claims losses far outstrips general economic inflation,” said Sean Cavellighan, CEO of Triple-1. As a result, the cost of both the insurance company and the insured has increased continuously. ’
According to the report, the largest share of these losses is due to rising claims costs rather than an increase in the number of claims.
