How Insurers Are Combating Legal System Abuse
Studies and statistics indicate that certain age groups, specifically 18-29 and 50-59, are more inclined to award larger sums in verdicts.
Telling the defendant's story in a way that humanizes the corporation presents the case as a singular event to be judged on its own facts, rather than as part of a larger systemic issue.
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.
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.
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.
