Clint Townson, PhD’s Post

I'm a little tired of these headlines, you? In Florida - during the biggest litigation crisis in history - we complained, but we also got to work. For ten years, Florida defense attorneys practiced Insurance Offense instead of Insurance Defense, and Florida adjusters practiced Litigation Resolution instead of Litigation Management. The National P&C Market will spend $30B in Insurance Defense (DCC) this year (not including the $200B+ in litigation losses). Instead of pouring it into another googleplex of emails and memos, national insurers can invest a fraction of that $30B into the transformation to Insurance Offense and Litigation Resolution. Insurance Offense and Litigation Resolution means winning trials and negotiating strong settlements. Insurance Offense and Litigation Resolution happens when insurers invest in adjusters and attorneys, instead of paying attorneys to flood their computer screens with emails, memos, and diary alerts. Insurance Offense and Litigation Resolution means paying star adjusters and attorneys to win cases, instead of demoralizing them with bill review and word document templates. Just like in Florida, national litigation departments will defeat the litigation crisis when they make the litigation department the strongest and most respected department at the company. https://lnkd.in/eSsqVhc8

Once notorious for its exorbitant legal payouts in the form of nuclear verdicts, Florida has experienced a significant shift. The Sunshine State, which was previously ranked second in the nation for nuclear verdicts, or awards in excess of $10 million, has now fallen to seventh place. The reform measures appear to have not only impacted the size of awards and a reduction in the median settlement amount in the state. The turnaround is attributed to legislative efforts aimed at curbing legal system abuse, marking a pivotal moment in the state's legal landscape. This helps explain why nine property insurance companies have reduced rates and ten others have announced that they will not be increasing rates in 2024, on top of eight new companies having been formed in the state since reform measures were enacted. An analysis of the numbers paints a compelling picture of this shift. In 2023 post-reform, Florida saw a total of $491 million awarded in nuclear verdicts, with $316 million arising from state court decisions and $175 million from federal courts. These figures signify a significant deviation from the state's earlier staggering total of $33.2 billion awarded across 175 nuclear verdicts between 2009 and 2023, positioning Florida as the second-highest in the U.S. during this period. With a 27% nationwide surge in nuclear verdicts in 2023, it becomes evident that Florida’s reformation efforts stand out amidst this national trend. https://lnkd.in/epaJnVqE

Once notorious for its exorbitant legal payouts in the form of nuclear verdicts, Florida has experienced a significant shift. The Sunshine State, which was previously ranked second in the nation for nuclear verdicts, or awards in excess of $10 million, has now fallen to seventh place. The reform measures appear to have not only impacted the size of awards and a reduction in the median settlement amount in the state. The turnaround is attributed to legislative efforts aimed at curbing legal system abuse, marking a pivotal moment in the state's legal landscape. This helps explain why nine property insurance companies have reduced rates and ten others have announced that they will not be increasing rates in 2024, on top of eight new companies having been formed in the state since reform measures were enacted. An analysis of the numbers paints a compelling picture of this shift. In 2023 post-reform, Florida saw a total of $491 million awarded in nuclear verdicts, with $316 million arising from state court decisions and $175 million from federal courts. These figures signify a significant deviation from the state's earlier staggering total of $33.2 billion awarded across 175 nuclear verdicts between 2009 and 2023, positioning Florida as the second-highest in the U.S. during this period. With a 27% nationwide surge in nuclear verdicts in 2023, it becomes evident that Florida’s reformation efforts stand out amidst this national trend. https://lnkd.in/epaJnVqE

Massive litigation and corporate verdicts continue to rise and jumped 27% in 2023. This trend continues to have a big impact on the way insurers underwrite, which inevitably pushes up insurance premiums for ALL organizations. #businessinsurance #insurance #riskmanagement

Reading between the lines: as the rate hikes on Property are slowing down, the next line of coverage to get hit hard will be General Liability. A comprehensive & proactive insurance team will continue to be a huge differentiator for business owners in the foreseeable future. https://lnkd.in/g9XMvEzy

Follow up to yesterday’s post on Q3 results: ‘25 outlook 👀 ~ LIABILITY is THE focus of ‘25.. WHY? 3rd party litigation funding, social inflation, nuclear verdicts, and rising defense costs. Start planning now for this development.

Segal McCambridge Shareholder Kenneth Williams will be speaking at the 2024 DRI Insurance Coverage and Practice Symposium in New York, NY, taking place December 4-6. On December 5th, Kenneth will join colleague Bob Horst to discuss: "Practice Tips to Avoid a Nuclear Outcome in All Phases of Litigation" With increasing focus on social inflation and nuclear verdicts, this session will provide examples of how insurers are working to mitigate these risks across all phases of litigation, including pre-suit, mediation, and trial. This timely discussion is an important opportunity for industry professionals to explore actionable strategies for addressing one of today’s most pressing challenges in insurance litigation. For more information about the symposium, visit: https://bit.ly/4fUpSaX #SegalMcCambridge #DRI #ICPS2024 #InsuranceLitigation #SocialInflation #NuclearVerdicts #RiskMitigation #ProfessionalDevelopment

What did you read in 2024? Follow along for the TOP 10 MOST READ #CLMMagazine articles. 💥 Number 7: Leveraging Nuclear Verdict Defense Methods at Mediation 💥 Accept responsibility, argue pain and suffering, give a number are not limited to trial tactics Written by: Lea Kapral, general manager of central claims, Acuity Insurance and Jennifer D. Akre, managing partner, Tyson & Mendes Published: March 05, 2024 ➡️ https://bit.ly/3Dz2Vfy #Insurance #ClaimsManagement #LitigationManagement #InsuranceDefense #SocialInflation #NuclearVerdicts #Mediation

If you missed Robert Tyson and Ashley Paige Fetyko's recent webinar with CLM Alliance (Claims and Litigation Management Alliance), "Personalize the Corporate Defendant or the Plaintiff Will Villainize Them," be sure to check out this recap article! Thank you, CLM Alliance (Claims and Litigation Management Alliance)! #CLM #TysonMendes #PersonalizeDefendant #NuclearVerdicts #InsuranceDefense

Lawsuits have always been a fact of life for American businesses. However, something may be fundamentally changing in this paradigm. Juries across the nation are increasingly going “nuclear” and these businesses are trapped on ground zero. Reports are that in 2023 alone, juries awarded over $ 14.5 billion in damages against “corporate defendants” in verdicts that are being called “nuclear”. These are verdicts that award over $ 10 million in damages. 89 lawsuits last year crossed that mark. 27 others went “thermonuclear” and crossed the $ 100 million mark. Companies across 50 sectors were hit, ensuring that everyone felt the pain. Sectors like pharma, manufacturing, and even construction were particularly vulnerable. Product liability is the most common type of lawsuit likely to go nuclear. Juries are becoming more used to large numbers, suggesting that even lawsuits against smaller companies and other infractions will tend upward. Businesses have usually relied on their insurance policies to tide over the cost of fighting legal battles and any verdicts that may go against them. Chances are their policies will have to be suitably upgraded to allow for this trend. #ProductLiability #LiabilityInsurance #NuclearVerdicts