The Real Costs Of Social Inflation

Lawsuit abuse continues to be a growing threat to fairness in our legal system and is a substantial contributor to increasing costs of goods and services for individuals, families, and businesses.

A significant factor in this rise in costs is the increasing rate of plaintiffs’ attorney involvement in everyday disputes and transactions, and the trend is growing in commercial automobile insurance where it threatens the delivery of goods and services nationwide.

Often, attorney involvement delays resolution of disputes, increases costs, and results in lower net settlement amounts for claimants. This means that the attorneys who interject themselves in these disputes can be the principal beneficiaries—not the injured party.

Plaintiffs’ attorney involvement is increasing through the use of aggressive tactics such as inflammatory attorney advertising and by becoming involved in the claims process increasingly earlier.

A 2017 analysis by X Ante/Kantar Media found that plaintiffs’ lawyers’ drug-injury advertisements on television, radio, and social media had increased by more than 60% since 2008. Their sensationalized, misleading claims may put patients at risk by discouraging appropriate medical care or safe drug usage according to a study by the U.S. Chamber Institute for Legal Reform entitled, ‘Bad for Your Health: Lawsuit Advertising Implications and Solutions.’