Litigation is now a structural pressure, not a cyclical one
Another major issue is social inflation and abuse of the legal system, which has led to continued claims inflation, particularly in liability lines, making profitability difficult at current pricing levels. As a result, insurers are raising rates in areas such as auto, excess liability and healthcare; tightening terms and conditions; adjustment range; And becoming more selective about geographic exposure. At the same time, insurers are investing more heavily in claims strategies to better manage litigation outcomes, including advanced pre-trial preparation techniques such as mock juries.