How Insurers Are Combating Legal System Abuse
Some ad campaigns suggest that insurance companies, rather than individuals, are responsible for paying large verdicts and settlements.
Public perception is shaped by various factors, such as seeing high earnings in professional sports, corporate executive compensation, and large corporate financial events.
The theory suggests that jurors are influenced by their instinctive desire to protect their community or family, and thus may render large awards in cases as a deterrent for future misconduct.
Factors such as Reptilian Theory, social inflation, litigation funding, and advertising are influencing juries, contributing to the surge in nuclear verdicts—defined as verdicts exceeding $10 million.
Litigation funding can provide plaintiffs with resources that exceed the actual value of the claim, which could encourage them to pursue higher settlement numbers that may not be realistic or reasonable.
