How Insurers Are Combating Legal System Abuse
Gen Z's close connection to technology might influence their attention spans and persuasion in the context of jury duty.
Insurers need to handle claims strategically, without being deterred by the possibility of a nuclear verdict, which can lead to inflated settlement values and hesitation to proceed to trial.
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.
Public perception is shaped by various factors, such as seeing high earnings in professional sports, corporate executive compensation, and large corporate financial events.
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.
