White Paper

Legal System Abuse Is Rampant — What Insurers Can Do and How Reinsurers Can Help

Both the amount of litigation and verdict sizes are increasing, causing insurers to look at how they can adjust their books of business to address it.

White Paper Summary

To understand the state of the American legal system today, all you need to do is go for a drive or turn on your television. You’ll find plaintiffs’ attorneys aggressively trying to recruit clients on billboards and television commercials throughout the country.

The United States is widely considered one of the most litigious countries in the world. Approximately 40 million lawsuits are filed every year in the U.S., making it the country with the largest number recorded each year. Over the last few years, businesses have been hit with numerous nuclear verdicts (verdicts that surpass $10 million) and have faced increasing costs for defending claims. According to Statista, large U.S. companies spent $22.8 billion in 2020 due to litigation.

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