Litigation now a structural pressure, not a cyclical one
Another key issue is social inflation and legal system abusewhich have driven sustained claims inflation, particularly in liability lines, making profitability difficult at current pricing levels. As a result, insurers are increasing rates across sectors such as auto, excess liability, and healthcare; tightening terms and conditions; adjusting limits; and becoming more selective about geographic exposure. At the same time, insurers are investing more heavily in claims strategies, including advanced pre-trial preparation techniques like mock juries, to better manage litigation outcomes.
