American Property Casualty Insurance Association: WHY LEGAL REFORMS ARE THE KEY TO LOWER INSURANCE COSTS

FIND OUT WHY LEGAL SYSTEM ABUSE MEANS HIGHER COSTS FOR CONSUMERS

CHICAGO, Oct. 2, 2024 /PRNewswire/ —

BACKGROUND:
The cost of doing business, owning a home or driving a car, is increasing, and inflation isn’t the only culprit. The misuse of the legal system, fueled by attorney advertising, frivolous lawsuits and claims funded by financers, has wrought a litigious culture, ultimately burdening every consumer and business with increased costs.  Misleading litigation advertising and other questionable tactics pose a serious threat, necessitating swift legislative action to help curb costs for consumers and businesses, while also protecting state economies.

Experience the full interactive Multichannel News Release here: https://www.multivu.com/players/English/9219952-american-property-casualty-insurance-association-legal-reforms-lower-insurance-costs/

DID YOU KNOW?

Last year, plaintiff lawyers spent $2.4 billion on more than 26 million local legal services ads. This is an increase of more than 5 percent since 2022.Investments in U.S. litigation funding increased to $15.2 billion in 2023. Hidden investors see someone else’s lawsuit as a profit center.  There has been a 319% increase in typical injury awards due to legal tactics that manipulate juries.Leading commercial and personal umbrella insurers—who provide high-limit liability coverage—are seeing more and larger claims, pushing liability insurance costs upward.

The emergence of third party litigation funding is a worrisome trend that has exacerbated the escalating costs within our legal system. These “lawsuit lenders” are not bound by the usury laws that govern traditional lenders, meaning they can charge litigants exorbitant interest rates—some well over 200%. This unchecked surge of litigation has had a far-reaching economic impact, costing the U.S. economy an estimated $443 billion. This equates to a “lawsuit tax” that adds $3,600 annually to each household’s expenses. Additionally, the lack of required disclosure in third party litigation funding has made our courts susceptible to foreign influence, posing a threat to both our economic and national security.

Robert Hartwig or Lynne McChristian discuss third party litigation funding and legal system abuse. They educate viewers on why households and businesses are increasingly paying the price for this abuse. They also provide more information on what reforms are needed to address these troubling trends.

For more information please visit: www.apci.org/legal-system-abuse 

MORE ABOUT ROBERT P. HARTWIG:
Robert P. Hartwig is Clinical Associate Professor of Risk Management, Insurance and Finance in the Darla Moore School of Business at the University of South Carolina and Director of the school’s Center for Risk and Uncertainty Management. He teaches courses in risk management, insurance and corporate finance, mentors students, pursues a variety of research interests and works with insurers, regulators, legislators and many other insurance industry stakeholders, including media. Dr. Hartwig is also a member of the Federal Reserve Board’s Insurance Policy Advisory Committee. Dr. Hartwig serves as a media spokesperson for the property/casualty insurance industry and is quoted frequently in leading publications such as The Wall Street Journal, The New York Times, USA Today, Washington Post, Los Angeles Times, Financial Times, BusinessWeek, Newsweek, U.S. News & World Report, CFO, Fortune, Forbes, The Economist and many others throughout the world. Dr. Hartwig also appears regularly on television, including programs on ABC, CBS, NBC, CNN, CNBC, Fox, PBS, Univision and the BBC.

MORE ABOUT LYNNE MCCHRISTIAN:
Lynne McChristian joined the University of Illinois in January 2019. She is the director of the Office of Risk Management & Insurance Research at the University of Illinois in Urbana-Champaign, where she is also a senior instructor teaching insurance and enterprise risk management classes. She has previously held a similar teaching and research position at Florida State University. McChristian’s corporate career includes more than 16 years with USAA, the highly regarded insurance and financial services company that primarily serves members of the U.S. military and their families. At USAA, she was responsible for internal and external communication, including crisis and strategic communication planning and media relations. McChristian has also been a consultant with the Insurance Information Institute and the American Property Casualty Insurance Association, both industry trade groups. She has been a featured columnist for an insurance industry publication and authored research papers on the lessons learned from Hurricane Andrew and on what renewed ties with Cuba could mean for insurance markets.

Produced for:  American Property Casualty Insurance Association (APCIA)

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SOURCE American Property Casualty Insurance Association