Liability market challenges reveal opportunities to innovate

While COVID-19 and social inflation create challenge and uncertainty for the liability market, they also hold the key to innovation and lasting success, according to Bob Reville, co-founder, president and chief executive officer of Praedicat.

Liability insurance is in a period of significant change, particularly in the light of social inflation. Throw the potential impact of COVID-19 into the mix and it’s clear that the market faces some unprecedented challenges—but with these come exciting opportunities to innovate, according to Bob Reville, co-founder, president and chief executive officer of Praedicat.

As an emerging risk specialist, Praedicat has a particular interest in this topic. On July 9 it will present a webinar with Intelligent Insurer, “Risk Management Moving Forward: Liability Insurance after COVID-19 and Social Inflation”, addressing the opportunities in more detail.

Social inflation—whereby insurers are facing rising costs due to increased litigation, group lawsuits and larger compensatory jury awards—has shaken the US liability market in recent years. This is partly driven by the increased involvement of investment funds that are backing litigation on the plaintiffs’ side. Another key factor is a shift in the attitude of juries.