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Trends and Insights: Social Inflation: What it is and why it matters | PA Benefits Advisors

“Social inflation” refers to the impact of rising litigation costs on insurers’ claim payouts, loss ratios, and, ultimately, how much policyholders pay for coverage. While there’s no universally agreedupon definition, frequently mentioned aspects include: Proliferation of class-action suits and other lawyer- and government-driven actions (“runaway litigation”); Growing awards from sympathetic juries (“nuclear verdicts”); “Litigation funding” … Continued

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