What Is the Evidence for Social Inflation?

What Is the Evidence for Social Inflation?

Trends in Trial Awards and Insurance Claim Payments

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"Social inflation is a term that has been used to describe social and behavioral trends that are said to expand the liability of parties allegedly responsible for harms and their insurers. Insurers and others have argued that social inflation creates a feedback loop in which rising levels of tort compensation fuel expectations of financial windfalls among potential claimants and the attorneys who represent them, which in turn stimulates the filing of new claims and associated lawsuits. Other observers take a different view, arguing that social inflation is a positive development, better enabli...