The United States’ litigation friendly legal climate combined with nuclear jury verdicts are leading to skyrocketing liability insurance costs according to the Marsh McLennan (MCC) President and CEO John Doyle. An article on MCC’s Q2 earnings call outlines how these factors impact costs.
Doyle cited data from the U.S. Chamber of Commerce that found over the past 10 years excess casualty insurance prices have risen by 150 percent and court cases exceeding $100 million jumped 400 percent.
An increase in third-party litigation funding, as well as nuclear payouts has created a strong incentive for plaintiffs’ attorneys to file cases. However, as Doyle noted on the call, “in many cases plaintiffs’ receive less than 50 percent of settlements.”
The United States already has the dubious distinction of having the highest liability insurance rates in the world. These rising costs, which are often passed on to consumers, send a major red flag to potential investors – driving jobs, economic growth and opportunities to other countries.
You can read the entire article here.