Around the world, liability risks are increasing, driven by litigation, regulations and consumer awareness. Social inflation is a huge issue, leading to massive claims and legal expenses. Class actions are a continuing problem in the US, where costs are spiralling and becoming unsustainable, with a worrying trend toward nuclear verdicts.
There are concerns that the EU’s Collective Redress Directive and the Product Liability directive will see the issue growing in Europe. There is a significant trend towards opt-out class actions in Europe, with the UK, the Netherlands and Slovenia introducing far-reaching mechanisms in recent years. Third party litigation funders across Europe are growing, and some US plaintiffs’ attorneys are opening offices in Europe.
-       What does this mean for the liability insurance sector in terms of capacity, rates, T&Cs?
-       What strategies are there available to corporates to tackle social inflation?
-       Will US style nuclear verdicts start to be seen in Europe?
-       Which areas are most affected by social inflation?