GLP-1 Drug Litigation Surges as Product Liability Risks Escalate

The rapid adoption of GLP-1 drugs such as Ozempic and Wegovy is reshaping the product liability landscape, according to new analysis from DAC Beachcroft. With more than 2,190 lawsuits consolidated into multidistrict litigation in the United States, manufacturers face allegations that they failed to adequately warn patients about severe side effects. These claims include gastroparesis, vision loss linked to NAION, and suicidal thoughts. For claims adjusters, the scale of the litigation highlights the need for close monitoring of policy language, exclusions, and evolving theories of liability.

DAC Beachcroft notes a significant shift in litigation focus toward vision-related injuries. Recent regulatory actions, including updated warning label requirements from the European Medicines Agency and new findings referenced in the Journal of the American Medical Association, are increasingly cited by plaintiffs as evidence that manufacturers were aware of risks. Adjusters should be aware that gastroparesis claims now often require confirmation through gastric emptying studies, a development that could narrow claim eligibility but increase complexity in medical record reviews.

Beyond liability claims, the financial impact of GLP-1 drugs is creating ripple effects across health insurance and reinsurance programs. Gallagher Re reports that increased GLP-1 usage pushed non-specialty prescription trends sharply higher in 2024, placing immediate pressure on employer-sponsored plans. Aggregate stop-loss coverage is emerging as a particular area of concern, as higher per-member-per-month costs raise the likelihood of aggregate limits being reached. Specific stop-loss exposure remains limited due to high deductibles, but inconsistent patient adherence adds uncertainty to long-term cost projections.

Longer-term projections paint a mixed picture for insurers. While analysts forecast GLP-1 drugs could eventually reduce mortality and morbidity, potentially lowering claims in disability and long-term care lines, increased longevity may drive higher costs in pension risk transfers and annuities. For claims professionals, the story underscores how pharmaceutical trends can influence not only claim frequency and severity today, but also reserving strategies and portfolio risk over decades.