Matt Engle’s Post

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

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?

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

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.

Happy Monday Zurich! In some days we will host our next ITW, and have the pleasure to be guided by Thomas Stamm and Ognjen Mijatovic around the topic of nuclear vedicts. This topic has many touchbase, legal and risk related indeed, and understanding the bottom line can help your company reduce costs, protect itself or even make benefits. 🤓 Since some of you asked me clarification on what's a nuclear verdict, our speakers will explain way better, in the meanwhile I propose this analogy: Imagine you’re at a baseball game, and one team suddenly scores an unbelievably high number of runs in a single inning. Everyone is shocked because it’s way more than anyone expected. In the world of commercial insurance, a “nuclear verdict” is a bit like that unexpected high score – it's a courtroom verdict where the damages awarded are extraordinarily high, often exceeding $10 million. Nuclear verdicts usually occur in cases where a business, like a trucking company or a manufacturer, is sued, and the jury feels that the business’s actions were extremely negligent or harmful. This could be due to a tragic accident, severe injuries, or even fatalities. The jury’s decision to award such high damages may comes from a desire to punish the business and make a strong statement. To make it relatable, let's think of a couple of real-world scenarios: -A trucking company is sued for an accident that caused multiple fatalities. The jury awards the victims' families $50 million, significantly higher than typical compensation amounts. -A manufacturer is found liable for a defective product that caused severe injuries. The verdict results in a $20 million payout to the injured party. Now you see the connection to Insurance, and why you want to hear more :-) See you on Friday morning, with Caroline de La Cochetière - Gauden and animating our Lincoln Switzerland talented network 💥

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

As a retail P&C broker, I can attest that one of the most dreaded phrases in our industry is "due to market conditions". However, it's important to acknowledge that nuclear verdicts and outsized jury awards do heavily influence these conditions. The impact of these verdicts is felt across the board, leading to premium increases, restrictive underwriting, and a reduction in insurers' capacity to write coverage. Let's stay vigilant and work towards a solution that benefits everyone involved.

Nuclear and mega nuclear verdicts are on the rise, making it difficult to find reasonably priced insurance for some segments. #insurance #businessinsurance #commercialinsurance #verdict #damage #damages #jury #excess #premium #loss #losses #claim #claims

I have a lot of conversations with companies about the cost of insurance and why we are seeing such a rise in premium. The article below touches on the liability side of thing. The ever changing demographics of our country is part of the driving force. Gone are the good old days when you could sit in a room and come to a resolution on a matter. The world we live in now those things are settled in a courtroom with a jury. So I am telling you now dot your i's and cross your t's when it comes to your liability management (General Liability, Auto Liability, Professional Liability and Umbrella). Make sure you have a great attorney and insurance agent who direct you in the right way. This is where the rubber meets the road in my line work. Work with someone who knows what they are doing and isn't just slinging insurance to make a quick buck.