Liability premiums to soar 150% by 2040 due to social trends, tech and climate change

Social trends are driving more frequent and severe claims verdicts, particularly in the US. Changes in legal practices, new technologies and environmental concerns will expand liability exposures.

The key takeaways of this Economic Insights are:

  • Liability insurance markets will continue to grow faster than the economy.
  • We forecast that liability premiums will increase by 4.7% (annual average) to USD 583 billion by 2040, representing 13% of the global P&C market.
  • In the medium term, social inflation-related factors will continue to drive the frequency and severity of large verdicts and settlements in the US.
  • In the longer term, emerging risk factors such as new technologies and environmental liability will contribute to additional liability exposure growth.
  • Insurers must respond with new analytical approaches and products to keep the growing risks insurable.

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Economic Insights Liability premiums to soar 150% by 2040 due to social trends, tech and climate change

See also former Economic Insights