Legal System Abuse: Research to Mitigation Tactics

Legal system abuse (also known as social inflation) has been a growing concern for the insurance industry for at least the last decade. The session will open with an overview of legal system abuse: what it is and why it matters. Then the session will go deeper with recent research by the Insurance Research Council (IRC) from its personal auto injury claims analytics database: Countrywide Personal Auto Injury Study, Attorney Involvement & Litigation in Auto Injury Claims, and Medical Utilization Patterns in Auto Injury Claims. The session will then transition to predictive modeling best practices in claims organizations to help insurance carriers reduce and mitigate the impact of legal system abuse – most notably the problems identified in IRC research.