Social inflation is a huge pain point in US liability insurance.

It is a term used to describe the phenomenon of rising costs of insurance claims resulting from increased litigation, broader definitions of liability, more plaintiff-friendly legal decisions, and larger (sometimes nuclear) compensatory jury awards.

The impacts of social inflation have been felt more acutely in some sectors than in others. For example, the trucking industry is a major target.

Over the past 20-years, the reputation of the trucking industry has been tarnished to the extent that any significant motor collision involving a large commercial vehicle can result in a nuclear jury verdict.

Other industries to feel the sting include: pharmaceutical and medical device manufacturers (especially regarding their product liability), as well as large corporations (in particular, their D&O and E&O liability).