Triple-I Launches Campaign Addressing Legal Misuse Impacting Insurance
The Insurance Information Institute (Triple-I) recently launched a strategic awareness campaign in Los Angeles, California, and Cook County, Illinois, to spotlight the impact of legal system misuse on insurance expenses and local economies. As insurers face rising loss costs across various lines due to factors like "social inflation" and hefty jury awards, industry voices have raised alarms over litigation's influence on claims and premiums.
Triple-I underscores that exploiting the legal system increases claim frequency and severity, resulting in higher premiums and sometimes shrinking coverage options for consumers and businesses alike. The campaign seeks to address these issues by educating the public and engaging state legislators in critical markets.
Campaign Overview
Triple-I has strategically placed traditional billboards along busy highways in Los Angeles and Cook County, targeting both automotive and pedestrian traffic. These billboards connect litigation trends with surging insurance premiums in auto, home, and business lines. Complementing this effort, digital ads on bus shelters and urban panels raise awareness about the impact of aggressive legal advertising on claim costs.
An updated website, StopLegalSystemAbuse.org, supports the campaign by serving as an educational resource. Triple-I describes it as a platform to explain the perceived ties between legal system abuse and rising insurance costs. Social media ads complement these efforts, directing users to the website and urging them to contact state legislators regarding these issues.
Legislative Advocacy
Triple-I CEO Sean Kevelighan emphasized that this campaign is part of a broader strategy to address litigation-related cost challenges in key states. He noted, "Now is an opportune moment for intervention from California and Illinois lawmakers, especially given the role of aggressive legal campaigns in influencing insurance premiums." Kevelighan pointed to recent legal reforms in Florida addressing assignment of benefits and attorney fee practices, showcasing potential benefits for insurance markets.
Impact on Insurance Market
Cook County and Los Angeles have been identified by the American Tort Reform Foundation as challenging jurisdictions for defendants, contributing to rising liability costs and claim volatility. Insurers note that "nuclear verdicts" and social inflation drive loss severity in casualty and commercial auto lines, affecting pricing and capacity negotiations, especially in urban and plaintiff-friendly regions.
For insurers and brokers, proposed tort reforms in California and Illinois may significantly influence both regional and national insurance markets. These states' size and market influence play a critical role in shaping national pricing strategies and reinsurance planning, impacting underwriting and claims adjustments across the U.S. property-casualty and casualty sectors.