Brad Dumbauld’s Post

Excellent article. The increase in these verdicts make it important to reevaluate the insurance program structure as well as the funding assumptions on any self insurance layers.

Interesting to see what the future holds regarding these types of verdicts.

Acknowledging the challenges faced by the insurance industry, we emphasize the need for tailored risk management strategies, considering factors like changing societal attitudes and regional concentrations. Our commitment extends to proactive solutions, addressing the impact on industries and the importance of reputation management for insurance companies. Aligning with the Insurance Journal article's recommendations, Schaefer City Technologies LLC offers a multi-pronged approach, empowering insurers with tools for effective mediation, witness preparation, and risk modeling. In navigating the era of Nuclear Verdicts®, we aim to equip insurance companies not just to survive but to thrive in this dynamic landscape. As pioneers in legal innovation, we are committed to developing adaptable strategies for managing these challenges effectively. Read the full article from Insurance Journal for a comprehensive view of the landscape and proactive measures needed to thrive. #InsuranceIndustryInsights #LegalInnovation #RiskManagement #NuclearVerdicts #SchaeferCityTech

What is a Nuclear Verdict? A court award or settlement exceeding $10 million - and they are on the rise. Up almost 30% in the past 10 years. Commercial Auto and Product Liability are at the peak of this risk factor, and small businesses are sometimes hurt by these verdicts since they do not have higher limits on their insurance coverage. It is key to understand your organization's risk, trends with settlements, and carrying proper liability insurance limits to protect your company. #commercialinsurance #riskmanagement #nuclearverdicts

You ever go through your insurance renewal process thinking 'what am I getting out of this? My rates keep going up and up but I don't have any claims!' Yea, we see and discuss that almost daily - and guess what, we don't always like it either. However, understanding the societal impacts and what it means to insurance companies, but more importantly you as a consumer is vitally important. So, what do nuclear verdicts and Third Party Litigation Funding mean to you? Probably nothing now, but it will mean something if we continue in the current trajectory in the insurance environment. Keep reading for the impact of nuclear verdicts, rate impacts and Third Party Litigation Funding and what this might mean for you in 2024... 💼📈 As we enter 2024, the insurance landscape grapples with the challenge of nuclear verdicts – those staggering settlements awarded by juries in liability cases. These verdicts, often surpassing $10 million, present significant hurdles for insurers across sectors. The insurance industry is experiencing a ripple effect from nuclear verdicts, prompting insurers to adjust rates to accommodate the heightened risk exposure. In addition to this challenge, the emergence of third-party litigation funding further complicates the situation. Third-party litigation funding involves external investors providing financial support to plaintiffs in exchange for a portion of the settlement or award. This practice has gained traction in recent years, fueling an increase in litigation frequency and size of claims. In 2024, insurers are anticipated to continue facing pressure to reassess their risk assessment models and pricing strategies due to the combined impact of nuclear verdicts and third-party litigation funding. These factors contribute to the upward trend in insurance rates across various lines of coverage. To navigate this evolving landscape, insurers are prioritizing proactive risk management. This includes strengthening underwriting discipline, enhancing claims management processes, and implementing robust risk mitigation measures. As we move forward, collaboration between insurers, policyholders, and industry stakeholders becomes increasingly vital. By fostering open dialogue and proactive risk mitigation strategies, we can effectively manage the challenges posed by nuclear verdicts and third-party litigation funding, ensuring a resilient insurance ecosystem that delivers value to all stakeholders. Come learn more with Risk Strategies Company in our State of the Market! #InsuranceIndustry #NuclearVerdicts #ThirdPartyLitigationFunding #RiskManagement #elevator #elevatorworld #naec #workplacesafety

Interesting article here. We see loss runs and receive incident reports on a regular basis that support this information, but it is still disconcerting to see summarized in this manner. The prevalence of 'nuclear verdicts' increased 27.5% from 2010-2019. What is a nuclear verdict? 👉 A nuclear verdict is a high jury award exceeding a 'reasonable amount' that judges would normally award based on precedent. The 'official definition' of nuclear verdict includes a settlement amount over $10M. 63% of all nuclear verdicts in the US over the past decade have been reported in only six states: 1️⃣ CA 2️⃣ FL 3️⃣ NY 4️⃣ TX 5️⃣ PA 6️⃣ IL 👉 Nuclear verdicts impact General Liability, Auto Liability, Product Liability & Excess Liability pricing. Carriers are forced to consider the rise in these outcomes when choosing whether to settle or proceed with a trial. The losses they pay out impact profitability, which ultimately leads to charging higher premiums. 👉 This also impacts the attachment point at which Excess carriers are willing to provide cover. Some carriers will pull out of the Excess market entirely while others will raise their attachment point, as we saw many carriers do in 2020-2021 when the Excess market hardened significantly. Cost of insurance is at the forefront of everyone's mind these days. Property insurance is a different issue. But I don't see a simple solution to 'fix' the cost of Liability insurance that does not involve significant legal system reform. Especially in certain states and counties. If everyone who trips would stop suing people, that would also help tremendously. Thoughts?

Jury awards exceeding $10M, aka “nuclear verdicts,” are on the rise, and nowhere is this trend more evident than in product liability cases. What can #excesscarriers do to prevent or draw the sting from such massive awards? FBT attorney Jeremiah Byrne, who leads our product, tort and insurance litigation practice, recommends that carriers enlist monitoring counsel with proven trial experience and the right subject-matter expertise. How can this fresh set of eyes and extra layer of defense insulate #insurance carriers from #litigation risks? Read his analysis: https://lnkd.in/gjRKDUZ9. #InsuranceLaw #NuclearVerdicts #ProductLiability #InsuranceLitigation

Proud to have my recent article published in the Insurance Journal. In recent years, the insurance industry has been grappling with a growing concern: the surge in what is now termed “nuclear verdicts.” As the name suggests, these are not just ordinary legal outcomes. These verdicts are particularly high jury awards that exceed a “reasonable amount” that judges would normally award based on precedent. Even in cases where there is no precedent, there is a general understanding of the ballpark in which the settlement value may lie. However, in cases with nuclear verdicts, the settlement values may far surpass expectations. Understanding the root causes and implications of these verdicts is crucial for insurance companies and their clients, as it may save them from exceedingly high levels of liability. #insuranceindustry #insuranceclaims #insurance #riskmanagement #riskmitigation #juryawards #litigationfunding #expensemanagement #expensetracker #lossprevention #losscontrol

The surge in nuclear verdicts is causing a seismic shift in how the #trucking industry approaches liability and #insurance. Protective Insurance, SambaSafety, GPS Trackit, and more share their insights on the “Impact of Fleet Technology on Nuclear Verdicts and Safety.” bit.ly/47Uu324

Nuclear verdicts - massive jury awards reaching tens of millions - are becoming increasingly common, and they're putting a strain on the insurance industry. Think about this: Insurers used to settle most cases out of court for a few million. Now, they're facing eight-figure judgments! This trend is fueled by third-party litigation funding (TPLF), where investors back lawsuits in exchange for a share of the proceeds. This means more cases are going to trial, and juries are deciding outcomes, often in favor of plaintiffs. What does this mean for insurers, especially in states like Florida, Louisiana, California, and Texas? Increased exposure to massive payouts. A difficult choice between expensive reinsurance or risking huge judgments. What can insurers do? Minimize exposure in hotbed states. Modify claim procedures to reduce bad faith risk. Communicate your risk management strategies to underwriters. Want to learn more? Our latest LION Specialty newsletter explores the rise of nuclear verdicts and provides strategies for insurers to navigate the ever-changing market. Like this post and comment "newsletter" to receive your copy and access to a weekly 5-minute newsletter to navigate the financial institution insurance market. Free for now, but not forever. We can help you: Assess your risk in hotbed states. Develop strategies to mitigate nuclear verdict risk. Secure the best insurance coverage for your needs. Don't wait until it's too late. Natasha I. Kiemnec, ARM Mark Flippen #staycovered