Latest news with #Triple-I
Business Wire
2 days ago
- Automotive
- Business Wire
Triple-I: US Personal Auto Insurance Industry Generates Profitable Underwriting Result but Faces Headwinds Due to Legal System Abuse, Regulatory Environment
MALVERN, Pa.--(BUSINESS WIRE)--The United States personal auto insurance industry achieved its strongest underwriting performance in the post-pandemic era, recording a net combined ratio of 95.3 in 2024, but continues to face headwinds due to escalating legal system abuse and a challenging regulatory environment, according to a new Issues Brief published today by the Insurance Information Institute (Triple-I). "The growing impacts of legal system abuse, driven by the exploitive tactics of billboard attorneys, combined with an increasingly complex regulatory environment, will continue to put pressure on the market." 'While the improved 2024 underwriting performance is encouraging, we remain focused on several challenges facing the personal auto insurance industry,' said Triple-I CEO Sean Kevelighan. 'The growing impacts of legal system abuse, driven by the exploitive tactics of billboard attorneys, combined with an increasingly complex regulatory environment, will continue to put pressure on the market. It's essential for auto insurers to continue managing these evolving risks effectively to sustain profitable growth.' Key Performance Highlights Triple-I's Issues Brief showed the personal auto insurance sector's improvement across multiple metrics in 2024: Premium Growth: The industry maintained robust growth momentum with a net written premium increase of 12.8% in 2024, following 14.4% growth in 2023. This marks two consecutive years of double-digit premium growth, outpacing the broader U.S. property/casualty (P/C) industry for the second consecutive year. Loss Performance: Direct incurred loss ratios improved dramatically, falling 21.7 percentage points from a peak of 86% in Q4 2022 to 64% by the end of 2024. This substantial improvement reflects the industry's successful efforts to align pricing with risk and implement effective loss control measures. Historical Context: The personal auto line has outperformed the net combined ratio of the overall U.S. P/C industry in 10 of the past 20 years since 2005. Ongoing Challenges and Emerging Risks Despite 2024's improved financial performance, the industry continues to face significant headwinds which could impact future results: Legal System Abuse: Increased billboard attorney involvement in claims and larger jury awards drove auto liability losses and defense and cost containment expenses up by a range of $76.3 billion to $81.3 billion from 2014 to 2023, according to a 2024 Triple-I/Casualty Actuarial Society study. Regulatory Environment: State regulatory processes have become increasingly challenging, with approval timeframes for rate filings growing 40% longer from 2010 to 2023. Additionally, the percentage of filings receiving less rate impact than requested by carriers has increased by 10 percentage points, potentially limiting market availability and competitive pricing. Frequency vs. Severity Trends: While claim frequency remains below pre-pandemic levels, severity continues to rise year-over-year, with pure premium trends increasing cumulatively by 25.0 points from 2019 to 2024. About the Insurance Information Institute (Triple-I) Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets. About The Institutes The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. The Institutes is a registered trademark of The Institutes. All rights reserved.
Yahoo
29-05-2025
- Business
- Yahoo
Triple-I's New Issues Brief Suggests Link Between Attorney Advertising, Mass Torts, Third-Party Litigation Funding and Rising Insurance Costs
MALVERN, Pa., May 29, 2025--(BUSINESS WIRE)--The Insurance Information Institute (Triple-I) has released its latest issues brief, Legal System Abuse and Attorney Advertising for Mass Litigation: State of the Risk, shedding light on the sharp rise in attorney advertising across the United States and the increasing influence of third-party litigation funding (TPLF) on the legal and insurance landscapes. According to research from the American Tort Reform Association (ATRA), legal service providers spent more than $2.5 billion on 26.9 million ads in 2024 alone – with significant increases in television, radio and outdoor advertising since 2017. TV ads peaked in 2023 with 16.4 million placements – a 44% increase from 2017. Radio ads surged to over 6.8 million in 2024 – a 261% jump from 2017 levels. Outdoor advertising, including billboards, rose by over 260%. While some of the overall rise in advertising spending (up 39% since 2020) can be attributed to increased digital costs, industry experts warn that the growing saturation of legal advertisements – often underwritten by third-party litigation funders – may be fueling legal system abuse, driving up insurance claims and delaying settlements. "Attorney advertising has become big business in the U.S., fueling explosive growth in the likes of multi-district litigation, which solicit anyone and everyone to join frivolous and expensive cases around anything from ear plugs to weed killer," said Sean Kevelighan, CEO, Triple-I. "These ads, often bankrolled by litigation funders, create urgency and overpromise outcomes, drawing in claimants who might not have otherwise considered legal action." There are hazards to attorney advertising, according to the Issues Brief. It creates a false sense of urgency, pressuring the target audience to take legal action, possibly without even considering other options; it overpromises results when implying guaranteed windfalls, creating unrealistic expectations and potentially impacting time to settle; and it influences potential juries, allowing attorneys to communicate plaintiff biased information, which can impact the way jurors process facts about the case. TPLF, in which dark money investors finance lawsuits in exchange for a portion of the settlement or judgment, has become a major force behind the surge in mass litigation. The infusion of capital allows law firms to scale up legal efforts, including expensive and widespread plaintiff recruitment through advertising. The economic potential of multidistrict litigation (MDL), combined with the high upfront costs of pursuing them, makes them an attractive vehicle for funders. The 2024 Westfleet Insider report estimates that TPLF assets under management reached $16 billion, with approximately 74% of commitments allocated to legal budgets – expenditures that can include advertising for plaintiff acquisition and case aggregation. Research by Yehonatan Givati and Eric Helland shows a direct correlation between ad volume and plaintiff participation in MDL cases, further suggesting a link between attorney advertising, often funded by TPLF, and litigation proliferation. They theorize that the increase in filings is not merely a result of competition between lawyers for cases but, rather, a genuine growth in the number of claimants. "Third-party litigation funding adds fuel to the big business of law fire," said Kevelighan. "By enabling broader reach and sustained legal action, TPLF may amplify systemic challenges, particularly in how insurers model risk and calculate premiums." Calls for Transparency and Reform Attorney advertising and third-party litigation funding are reshaping the legal landscape. In response, stakeholders are urging policymakers to balance access to justice by preserving the integrity of the legal system. Without greater transparency and oversight, the combined impact of mass tort advertising and external funding could further strain insurers, raise premiums, and erode public trust in the civil justice system. "Tripe-I continues to shine a light on legal system abuse, calling for more tort reform to wrangle in what's become out-of-control tactics by billboard attorneys who are exploiting Americans and increasing costs for critical household products and services," said Kevelighan. About the Insurance Information Institute (Triple-I) Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate, and connect consumers, industry professionals, policymakers, and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers, and reinsurers – serving regional, national, and global markets. About The Institutes The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. The Institutes is a registered trademark of The Institutes. All rights reserved. View source version on Contacts Loretta WortersNew York Press Office917-208-8842lorettaw@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
29-05-2025
- Business
- Business Wire
Triple-I's New Issues Brief Suggests Link Between Attorney Advertising, Mass Torts, Third-Party Litigation Funding and Rising Insurance Costs
MALVERN, Pa.--(BUSINESS WIRE)--The Insurance Information Institute (Triple-I) has released its latest issues brief, Legal System Abuse and Attorney Advertising for Mass Litigation: State of the Risk, shedding light on the sharp rise in attorney advertising across the United States and the increasing influence of third-party litigation funding (TPLF) on the legal and insurance landscapes. 'Third-party litigation funding adds fuel to the big business of law fire." According to research from the American Tort Reform Association (ATRA), legal service providers spent more than $2.5 billion on 26.9 million ads in 2024 alone – with significant increases in television, radio and outdoor advertising since 2017. TV ads peaked in 2023 with 16.4 million placements – a 44% increase from 2017. Radio ads surged to over 6.8 million in 2024 – a 261% jump from 2017 levels. Outdoor advertising, including billboards, rose by over 260%. While some of the overall rise in advertising spending (up 39% since 2020) can be attributed to increased digital costs, industry experts warn that the growing saturation of legal advertisements – often underwritten by third-party litigation funders – may be fueling legal system abuse, driving up insurance claims and delaying settlements. 'Attorney advertising has become big business in the U.S., fueling explosive growth in the likes of multi-district litigation, which solicit anyone and everyone to join frivolous and expensive cases around anything from ear plugs to weed killer,' said Sean Kevelighan, CEO, Triple-I. 'These ads, often bankrolled by litigation funders, create urgency and overpromise outcomes, drawing in claimants who might not have otherwise considered legal action.' There are hazards to attorney advertising, according to the Issues Brief. It creates a false sense of urgency, pressuring the target audience to take legal action, possibly without even considering other options; it overpromises results when implying guaranteed windfalls, creating unrealistic expectations and potentially impacting time to settle; and it influences potential juries, allowing attorneys to communicate plaintiff biased information, which can impact the way jurors process facts about the case. TPLF, in which dark money investors finance lawsuits in exchange for a portion of the settlement or judgment, has become a major force behind the surge in mass litigation. The infusion of capital allows law firms to scale up legal efforts, including expensive and widespread plaintiff recruitment through advertising. The economic potential of multidistrict litigation (MDL), combined with the high upfront costs of pursuing them, makes them an attractive vehicle for funders. The 2024 Westfleet Insider report estimates that TPLF assets under management reached $16 billion, with approximately 74% of commitments allocated to legal budgets – expenditures that can include advertising for plaintiff acquisition and case aggregation. Research by Yehonatan Givati and Eric Helland shows a direct correlation between ad volume and plaintiff participation in MDL cases, further suggesting a link between attorney advertising, often funded by TPLF, and litigation proliferation. They theorize that the increase in filings is not merely a result of competition between lawyers for cases but, rather, a genuine growth in the number of claimants. 'Third-party litigation funding adds fuel to the big business of law fire,' said Kevelighan. 'By enabling broader reach and sustained legal action, TPLF may amplify systemic challenges, particularly in how insurers model risk and calculate premiums.' Calls for Transparency and Reform Attorney advertising and third-party litigation funding are reshaping the legal landscape. In response, stakeholders are urging policymakers to balance access to justice by preserving the integrity of the legal system. Without greater transparency and oversight, the combined impact of mass tort advertising and external funding could further strain insurers, raise premiums, and erode public trust in the civil justice system. 'Tripe-I continues to shine a light on legal system abuse, calling for more tort reform to wrangle in what's become out-of-control tactics by billboard attorneys who are exploiting Americans and increasing costs for critical household products and services,' said Kevelighan. About the Insurance Information Institute (Triple-I) Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate, and connect consumers, industry professionals, policymakers, and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers, and reinsurers – serving regional, national, and global markets. About The Institutes The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. The Institutes is a registered trademark of The Institutes. All rights reserved.
Yahoo
19-05-2025
- Business
- Yahoo
Triple-I: Resilience, Collaboration and Investment Essential to Mitigate Growing Wildfire Risk in US
SAN DIEGO, May 19, 2025--(BUSINESS WIRE)--The Insurance Information Institute (Triple-I) today published its latest wildfire Issues Brief highlighting how fire risk is escalating across all regions of the U.S. Triple-I's report showed the number of wildfires reported and acres burned nationwide in 2024 was noticeably higher than five- and 10-year averages, according to the National Interagency Coordination Center (NICC). "Resilience, collaboration and investment are what's needed to ensure that our communities are safe from wildfire," said Sean Kevelighan, CEO, Triple-I. "The insurance industry is working with all stakeholders to predict and prevent devastating losses from wildfires." Kevelighan added it is also important that property/casualty insurers proactively engage with diverse stakeholder groups to promote investment in mitigation and resilience. "This goes for all climate-related perils, but it is particularly important in the case of wildfire," Kevelighan stressed. Highlights of Triple-I's Issues Brief included: 64,897 wildfires were reported across the U.S. in 2024, compared to 56,580 wildfires reported in 2023, NICC reported in its Wildland Fire Summary and Statistics Annual Report 2024. Reported wildfires consumed 8,924,884 acres last year, compared to 2,693,910 acres in 2023. Seven out of the 10 geographic areas experienced above average numbers of wildfires and acres burned, NICC said. The Southern Area had the highest number, while the Northwest Area had the greatest number of acres burned. Nationally, 4,552 structures were reported destroyed by wildfires in 2024, including 2,406 residences, 2,066 minor structures and 80 commercial/mixed residential structures. Triple-I's Issues Brief noted one homeowner's investment in pre-emptive mitigation of fire damage can be quickly undone by the failure of neighbors to invest in similar measures. With more people moving into the wildland urban interface (WUI), communities must work together. Insurers are well-suited to inform and support these efforts, but homeowners and businesses need to present a united front to drive adoption of modern building and land-use codes. RELATED LINKS: Article:California Wildfires Update 2025 Facts and Statistics:Wildfires Triple-I/Capgemini Report:Tamping Down Wildfire Threats: How Insurers Can Mitigate Risks and Losses (November 2022) Videos:Building for Wildfire Resilience Managing Wildfire Risk About the Insurance Information Institute (Triple-I) Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets. About The Institutes The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. The Institutes is a registered trademark of The Institutes. All rights reserved. View source version on Contacts California Press Office Janet Ruiz 707-490-9365 JanetR@ Sign in to access your portfolio
Business Wire
19-05-2025
- Business
- Business Wire
Triple-I: Resilience, Collaboration and Investment Essential to Mitigate Growing Wildfire Risk in US
SAN DIEGO--(BUSINESS WIRE)--The Insurance Information Institute (Triple-I) today published its latest wildfire Issues Brief highlighting how fire risk is escalating across all regions of the U.S. 'Resilience, collaboration and investment are what's needed to ensure that our communities are safe from wildfire." Triple-I's report showed the number of wildfires reported and acres burned nationwide in 2024 was noticeably higher than five- and 10-year averages, according to the National Interagency Coordination Center (NICC). 'Resilience, collaboration and investment are what's needed to ensure that our communities are safe from wildfire,' said Sean Kevelighan, CEO, Triple-I. 'The insurance industry is working with all stakeholders to predict and prevent devastating losses from wildfires.' Kevelighan added it is also important that property/casualty insurers proactively engage with diverse stakeholder groups to promote investment in mitigation and resilience. 'This goes for all climate-related perils, but it is particularly important in the case of wildfire,' Kevelighan stressed. Highlights of Triple-I's Issues Brief included: 64,897 wildfires were reported across the U.S. in 2024, compared to 56,580 wildfires reported in 2023, NICC reported in its Wildland Fire Summary and Statistics Annual Report 2024. Reported wildfires consumed 8,924,884 acres last year, compared to 2,693,910 acres in 2023. Seven out of the 10 geographic areas experienced above average numbers of wildfires and acres burned, NICC said. The Southern Area had the highest number, while the Northwest Area had the greatest number of acres burned. Nationally, 4,552 structures were reported destroyed by wildfires in 2024, including 2,406 residences, 2,066 minor structures and 80 commercial/mixed residential structures. Triple-I's Issues Brief noted one homeowner's investment in pre-emptive mitigation of fire damage can be quickly undone by the failure of neighbors to invest in similar measures. With more people moving into the wildland urban interface (WUI), communities must work together. Insurers are well-suited to inform and support these efforts, but homeowners and businesses need to present a united front to drive adoption of modern building and land-use codes. Wildfires Videos: Managing Wildfire Risk About the Insurance Information Institute (Triple-I) Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets. About The Institutes The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. The Institutes is a registered trademark of The Institutes. All rights reserved.
