How Insurers Are Combating Legal System Abuse
Efforts are in progress to develop AI tools for use during trials.
Some ad campaigns suggest that insurance companies, rather than individuals, are responsible for paying large verdicts and settlements.
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.
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.