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. This session will start with an overview of recent research by the Insurance Research Council from its personal auto injury claims analytics database. Attorney and litigation involvement and medical utilization patterns in auto injury claims will also be discussed. 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 of attorney involvement, litigation, and excessive medical utilization identified in IRC research.