Legal system abuse, known within the insurance industry as social inflation, is contributing to the rising impact of litigation costs and claim payouts. The presentation will start from its definition and underlying drivers, then transition to an actuarial approach to quantify its impacts, and close with an overview of what the industry is doing to reduce the adverse impact of future legal system abuse.
Learning Objectives:
Learn the definition and underlying drivers of legal system abuse.
Understand one actuarial approach to quantifying the impact of social inflation in commercial auto, personal auto, and medical malpractice.
learn industry efforts to reduce future legal system abuse.
