Commercial Casualty Losses Surge 11% in 5 Years: 3 Strategies to Navigate Social Inflation in Claims

Swiss Re’s latest report reveals that social inflation is significantly impacting commercial casualty losses, with an average annual increase of 11% over the past five years. The U.S. leads this trend, though other countries like the UK, Australia, and Canada are also affected. Claims departments must adapt by focusing on three key strategies: leveraging data analytics, implementing efficient early case assessment, and investing in advanced technologies.

Data-driven decision-making helps predict high-severity claims, while early case assessment identifies high-risk claims that may result in large settlements. Additionally, utilizing AI and predictive tools ensures claims are managed more effectively. These approaches help claims professionals stay ahead of escalating liability risks.