Social inflation redux looking "kind of shocking": Gallagher CEO
Social inflation could explode back onto the insurance scene as courts in the US reopen, compounding massive settlements with the unfortunate combination of legal delays and high inflation, Arthur J Gallagher's top officer said Tuesday (December 14).
"Social inflation is going to really be something to impact the industry," chief executive officer Patrick Gallagher told investors and analysts during a teleconference.
Gallagher refers vaguely to recent settlements on "misconduct claims that have been rolling around out there," presumably the latest Chubb payment for the Boy Scouts of America, and citing early claims in the Astroworld concert in Houston.
"Some of these settlements, they are kind of shocking," Gallagher said. "And the courts, let's remember, the courts have not been open for two years."
Those delays might not square with insurer provisions now that heightened inflation has taken root, CEO Gallagher added.
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