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Digital Publisher
Digital Commons at St. Mary's University
Publication Date
Spring 2025
Keywords
nuclear; risk management strategies; insurance
Description
By understanding and addressing the impact of nuclear verdicts, the insurance industry can strive for resilience and sustainable growth amidst a rapidly changing legal and economic environment. Social inflation describes how insurers’ claims costs are increasing above general economic inflation. Nuclear verdicts are a testament to rising costs that insurance companies must manage when running of their business. As the frequency and magnitude of nuclear verdicts continue to rise, the surge in massive settlements has prompted insurers to reassess risk management strategies, leading to increased premiums and a reevaluation of underwriting practices. Insurers are compelled to anticipate and mitigate the financial implications of potential large payouts, influencing their pricing models and overall market dynamics as these anomalies stay for the long haul. This research examines how these monumental legal decisions impact the industry's profitability and stability. By analyzing the National Law Journal’s “Top 100 Verdicts” report from 2010 to 2022, this research aims to observe changes within the landscape of nuclear verdict cases between different types of cases and lines of insurance. As the research continues, actuarial analysis will be done to understand and predict the outcomes of litigation proceedings in a macroscale, so insurance companies can be prepared to insure the risks that they are insuring
Format
Size
1 page
City
San Antonio, Texas
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.