Each year the American Tort Reform Association (ATRA) publishes a list of “Judicial Hellholes” — places where ATRA says laws and court procedures are applied in an “unfair and unbalanced” way in civil cases, usually to the disadvantage of defendants. Since the issue of social inflation has been trending in recent months, it’s no surprise … Continue reading Florida Dropped From 2020 “Judicial Hellholes” List
Never heard of “social inflation”? It’s a fancy term to describe rising litigation costs and their impact on insurers’ claim payouts, loss ratios, and, ultimately, how much policyholders pay for coverage. While there’s no universally agreed-upon definition, frequently mentioned aspects of social inflation are growing awards from sympathetic juries and a trend called “litigation funding”, … Continue reading Florida’s AOB Crisis: A Social-Inflation Microcosm
On December 11, 2018 the Insurance Information Institute (I.I.I.) published a report documenting Florida’s assignment of benefits crisis – what the crisis is, how it’s spreading and how it’s costing Florida consumers billions of dollars. You can download and read the full report, “Florida’s assignment of benefits crisis: runaway litigation is spreading, and consumers are … Continue reading Florida’s assignment of benefits crisis: PowerPoint slides now available
Two bills proposed in Illinois this year illustrate yet again the need for lawmakers to better understand how insurance works. Illinois HB 4767 and HB 4611 – like their 2023 predecessor, HB 2203 – would harm the very policyholders the measures aim to help by driving up the cost for insurers to write personal auto … Continue reading New Illinois BillsWould Harm — Not Help — Auto Policyholders
The increasing frequency and severity of claims costs beyond insurer expectations continue to threaten insurance coverage and affordability. Triple-I’s latest Issue Brief, Legal System Abuse – State of the Risk describes how trends in claims litigation can drive social inflation, leading to higher insurance premiums for policyholders and losses for insurers. Key Takeaways What we … Continue reading New Triple-I Issue Brief Takes a Deep Dive into Legal System Abuse
By Max Dorfman, Research Writer, Triple-I Louisiana continues to be the least affordable state for personal auto and homeowners insurance, according to a new report by the Insurance Research Council (IRC). The average annual expenditure for auto insurance in Louisiana was $1,495 In 2020, more than 40 percent above the national average, the report finds. … Continue reading Louisiana Still Least Affordable State for Personal Auto, Homeowners Insurance
Ten states – Louisiana, Florida, Idaho, Kentucky, Mississippi, Montana, North Dakota, South Carolina, Texas, and Virginia – as well as additional plaintiffs, are suing the Federal Emergency Management Agency (FEMA) over its new methodology for pricing flood insurance, Risk Rating 2.0. On Sept. 14, a federal hearing lasted six hours as the plaintiffs sought a … Continue reading It’s Not an “Insurance Crisis” — It’s a Risk Crisis
Louisiana Insurance Commissioner Jim Donelon last week issued a cease-and-desist order against a Houston-based law firm, accusing it of fraud involving potentially hundreds of hurricane-related claims in his state. “The size and scope of McClenny, Moseley & Associates’ illegal insurance scheme is like nothing I’ve seen before,” Donelon said in a press release. “It’s rare … Continue reading Louisiana Insurance Regulator IssuesCease & Desist Orderto Texas Law Firm
Among the themes running through Triple-I’s 2022 Joint Industry Forum (JIF), a dominant one was the growing importance of predicting and preventing losses, versus the property/casualty insurance industry’s traditional emphasis on transferring risk from policyholders to insurers and assessing and paying claims when they arise. Increasing severity of weather- and climate-related events, compounded by rising … Continue reading JIF 2022 Wrap-Up:From Risk Transferto “Predict & Prevent”
Litigation costs could add between $10 billion and $20 billion to insured losses from Hurricane Ian, adding to the woes of Florida’s already struggling homeowners’ insurance market, says Mark Friedlander Triple-I’s corporate communications director. Early estimates put Ian’s insured losses above $50 billion. “Based on the past history of lawsuits following Florida hurricanes and the … Continue reading Lawsuits Threatento Swell Ian’s Price tag