Collaboration Between Insurers and Regulators to Tackle Rising Litigation Costs

At the American Property Casualty Insurance Association’s annual meeting in Boston, industry leaders emphasized the vital role of collaboration between insurers and regulators in addressing rising litigation costs by improving data sharing and consumer education.

The discussions highlighted the shared responsibility of insurers and regulators to quantify the costs of litigation, as these practices are believed to inflate premiums for consumers. Tim Temple, the insurance commissioner for Louisiana, stressed the need for detailed data to facilitate these efforts, asserting, “It’s important that you quantify it so that we can continue to make progress.” His call for transparency was echoed by Mark Afable, a consultant and former Wisconsin insurance commissioner, who underscored the importance of data in understanding the impact on insurance costs. “We need the numbers, and regulators need the data behind what’s taking place,” he said.

Panelists also tackled the issue of consumer education. Dana Popish Severinghaus, a partner at Noted Advisory, underscored the opportunity for educational partnerships to inform the public about how legal expenses drive up their premiums. “Where the opportunity really lies is to do educational partnerships — getting out there and letting consumers know that this is what’s adding to their insurance costs," she stated. The panel concluded that the insurance sector must also strategize on countering the promotional messages of plaintiffs' attorneys, a point made clear by Afable, who noted, “It’s really important for the industry to think about how do they combat that message.”