Liability Claims Surge as Non-Economic Inflation Drives Nuclear Verdicts, Swiss Re Warns

Analysis from Swiss Re Institute shows that non-economic inflation now accounts for roughly 60 percent of U.S. liability claims growth, driven by legal system dynamics rather than wage or price inflation. For claims adjusters, the findings explain why historical loss patterns no longer predict outcomes, particularly in severe injury and wrongful death cases.

Public attitudes toward compensation have shifted sharply. Jury pools increasingly view large verdicts and punitive damages as appropriate tools for corporate accountability. The rapid rise in nuclear verdict frequency and severity means adjusters must reassess early evaluation practices, venue risk, and damage anchoring during mediation. Younger jurors, who dominate many panels, consistently support higher awards, increasing volatility even in cases with defensible liability positions.

Litigation funding has added fuel to the fire. With most U.S. law firms now using third-party funding, claims that once settled quietly are being pushed through trial or consolidated into MDLs. For adjusters handling product, environmental, cyber, and emerging technology claims, this increases defense costs, extends claim duration, and complicates settlement timing.

Small and mid-sized insureds face particular exposure. Swiss Re’s data shows juries are willing to return nuclear verdicts against SMEs when injuries are severe, despite lower perceived corporate scale. For adjusters, this elevates the importance of early excess notification, policy limit adequacy reviews, and coordinated defense strategies to avoid catastrophic outcomes.

Outside the U.S., expanding class action frameworks and regulatory changes signal similar pressures ahead. Adjusters handling multinational programs or foreign liability placements should expect broader claimant pools, longer tails, and higher uncertainty, especially as Europe updates product liability standards in late 2026.