Social inflation is the trend of rising insurance costs due to increased litigation, plaintiff-friendly judgments and so-called “nuclear” jury awards – also shows no signs of slowing, and litigation funding is an added concern for insurers (insurance companies and insurance markets).
With the rise in inflation, claim costs in several lines of coverage including commercial auto and property are increasing and will also likely become more expensive in general liability too.
Obviously, rising claims costs drive premiums higher.
For more details/latest, click here: Social Inflation Hard To Measure Important To Understand
Source: www.III.org (Insurance Info Institute)