Social inflation is the trend of significant increases in verdicts and costs associated with civil litigation – increases that exceed general economic inflation without a demonstrable change in legal or factual bases to substantiate it. Often, these increases are best characterized by large jury awards of $10 million or more, which have become known as “nuclear verdicts.” These rising litigation costs and unpredictable verdicts can have an enormous impact on businesses and industries, including higher insurance premiums.

Rising verdicts

Between 2016 and 2022, United States tort costs grew at an average annual rate of 7.1%. This far exceeded the average annual inflation rate of 3.4% and the average annual GDP growth of 5.4% over the same time period. [1]

According to a study published i

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