What Is Social Inflation - Web social inflation, or the rise of insurers' costs to cover claims above general economic inflation, is a growing threat to insurance affordability. The struggle to quantify social inflation’s causes is one reason policymakers have yet to reduce its impact. Social inflation is a term that describes how insurers’ claims costs are increasing above general economic inflation. This is generally thought to be due to a trend in increasing litigation costs brought by plaintiffs seeking large monetary relief for their injuries.
The struggle to quantify social inflation’s causes is one reason policymakers have yet to reduce its impact. This is generally thought to be due to a trend in increasing litigation costs brought by plaintiffs seeking large monetary relief for their injuries. Social inflation is a term that describes how insurers’ claims costs are increasing above general economic inflation. Web social inflation, or the rise of insurers' costs to cover claims above general economic inflation, is a growing threat to insurance affordability.