Higher loss ratios and legal system abuse concerns are causing re-evaluations
The third-party liability insurance market has entered a period of heightened volatility, driven by rising nuclear verdicts, evolving juror attitudes, and increased third-party litigation funding.
As a result, insurers are reducing capacity, leading to higher premiums and more restrictive coverage terms. Businesses that fail to adjust to this shifting landscape face significant financial and operational risks.
Vince Gaffigan, executive vice president and director of risk consulting at Lockton, has observed significant shifts in the third-party liability insurance market.
What was once a relatively stable sector has become increasingly volat