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Amber Dove

Liability Trust Champion

The general liability environment has become increasingly difficult for insurers and their policyholders. Increasing insurance costs have led to businesses today typically having high retention points, so they’re often faced with navigating this environment mostly on their own. Social inflation, nuclear verdicts, aggressive plaintiff attorney advertising and a diminishing bench of experienced trial attorneys have combined to create a perfect storm for the industry. While much attention is paid to rising claim severity and litigation costs, one of the most significant challenges may be occurring long before a lawsuit is filed, the shaping of public perception of insurance and claims.

The Narrative Begins before the Claim

The industry has spent years discussing social inflation as a driver of escalating claim costs. Numerous industry articles confirm what many claims’ professionals have observed firsthand, people are increasingly receptive to litigation, juries are more supportive of larger damage awards and more inclined to side with injured plaintiffs. Public attitudes toward lawsuits have shifted dramatically and juror sentiment has become a measurable contributor to adverse verdict outcomes.

A major factor in this shift has been the plaintiff bar's sophisticated and sustained advertising efforts. Through television, streaming platforms, social media, radio and outdoor advertising, plaintiff firms communicate a simple and highly effective message, corporations and insurance companies cannot be trusted, they prioritize profits over people and injured individuals must "fight" to obtain fair compensation. These messages are delivered repeatedly and consistently to millions of potential jurors long before they receive a jury summons.

For claims professionals, this creates a significant challenge. Claimants often have preconceived notions regarding insurers and in-house claims departments. The plaintiff bar has effectively transformed client and jury conditioning into a year-round activity. Claims investigations, coverage reviews and liability evaluations, all routine and necessary components of the claims process, are now frequently viewed through a lens of skepticism. Jurors enter the courtroom already suspicious of the insurance company and defense team.

A Generation Conditioned to Distrust

The impact appears particularly pronounced among younger jurors. Young jurors, those under 29 years old, have spent their entire lives exposed to messaging that portrays insurers as adversaries.  They believe what they see in social media and trust online sources more than any other age bracket. Younger adults also have a stronger preference for holding businesses accountable by awarding broader compensation for perceived harms.

Compounding the challenge is the industry's relative silence. Understandably concerned about reputational risk and unfavorable media attention, insurers and businesses often avoid engaging publicly on these issues. In doing so, however, the defense has largely ceded control of the narrative. While plaintiff firms actively educate the public about their perspective of the civil justice system, insurers rarely communicate the societal value of insurance, the importance of fraud prevention, the need for claim investigation or the broader economic effects of excessive litigation.

When Trial Experience becomes Scarce

At the same time, insurers and businesses face another headwind, a shrinking cadre of trial-tested attorneys. The post-COVID litigation environment has seen fewer jury trials and increased reliance on alternative dispute resolutions, leaving many firms with fewer attorneys who have substantial recent courtroom experience. With juries having become increasingly unpredictable and high-severity cases continuing to generate outsized verdicts, this lack of trial-tested partners leads to fear and higher settlements to avoid the risk of trial.

For the insurance industry and their insureds facing increasing general liability costs of claims and litigation, the lesson is clear. The challenge is no longer limited to defending individual claims. It’s about rebuilding trust, educating the public and ensuring that jurors understand the essential role insurers and claims professionals play in protecting American businesses, local employees and communities. The industry’s lack of participation in that conversation means others will continue to define it.