Emerging Trends in Liability Claims Reshape U.S. Risk Landscape

Liability claims in the U.S. are undergoing significant transformation, driven by five key trends, Allianz Commercial reports. The most striking is the rise of "nuclear verdicts" – jury awards exceeding $10 million – and "thermonuclear verdicts" that surpass $100 million. These have escalated liability claims by 57% over the past decade, with U.S. commercial casualty losses reaching $143 billion in 2023. Contributing factors include changing jury demographics, mistrust of corporations, and advanced psychological tactics employed by plaintiff attorneys.

Other major trends include billion-dollar class actions in the pharmaceutical sector and burgeoning lawsuits over PFAS chemicals, dubbed ‘forever chemicals,’ which are predicted to rival asbestos litigation. Additionally, Europe is experiencing a rise in collective legal actions, spurred by regulatory changes such as the EU’s Representative Actions Directive.

Artificial intelligence is also reshaping the legal field. AI-powered tools are transforming legal research, contract drafting, and litigation strategy, influencing both the volume and nature of claims. While technology offers efficiency, it may also amplify litigation risks by enabling plaintiffs to uncover novel liability cases.

The report underscores the importance of collaboration among insurers, businesses, and regulators to mitigate these challenges and address escalating liability costs.