North American Legal Doctrines

Social inflation has lit a fuse. In response to alarming levels of exposure, policyholders are devising ever more creative strategies for colluding with claimants to maximize insurance recoveries at the expense of their carriers. Strategies include overreach in formulation of bankruptcy plans, bad faith setups, and exploitation of conflict rules to exclude carriers from the claim resolution process and compel them to accept inflated settlement amounts. 

The creative use of legal doctrine can create real difficulties for insurers working to manage their exposure. In our content below, we explore these issues in more detail.