What happened: Nuclear verdicts are driving up insurance costs, reducing coverage availability and increasing financial risks for insurance providers and policyholders.
Remind me: Median nuclear verdicts have more than doubled, rising from $21 million in 2020 to $44 million in 2023, with no signs of slowing.
Tell me more: The rise in nuclear verdicts is reshaping the insurance landscape.
- Insurers are reducing coverage limits and increasing reserves to absorb financial risks.
- Policyholders face higher premiums, limited access to adequate coverage and exposure to costs exceeding policy limits.
- Small and medium-sized businesses are particularly vulnerable to the financial fallout from these awards.
TLR Thoughts: The rise in nuclear verdicts poses a direct threat to Texas’ economic stability. These runaway jury awards drive up insurance costs for businesses, increase financial uncertainty and hinder growth. Legislative action is essential to curb these excessive payouts and protect businesses and consumers from their widespread impact.
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