How Insurers Are Combating Legal System Abuse
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.
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.
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.
