The range of exposures facing corporation, as well as subsequent loss and claims scenarios, have increased significantly in recent years. There are rising court costs, disruptive recalls, political risks and environmental problems – all in the face of a challenging global pandemic.LitigationLiability
Allianz Global Corporate & Specialty (AGCS) experts highlight five loss mega trends in a new report that may affect risk managers and their broker partners, reflecting the state of the liability insurance market.
1. Drivers of social inflation, such as litigation funding and class actions challenging businesses and moving into new jurisdictions
“Social inflation” describes rising insurance losses due to the growing emergence of litigation funders, higher jury awards, more liberal workers’ compensation claims, legislated compensation increases and new tort and negligence concepts – a phenomenon that is especially prevalent in the U.S. but that is now growing globally.
Consumer-facing industries, such as retail, healthcare, automotive, insurance, pharmaceutical and financial services, are often the most affected by this trend, but many other industries are increasingly susceptible.