The impacts of legal system abuse on the U.S. property/casualty (P/C) industry was the focus of a recent segment of CNBC’s “Money Movers” program.
The big picture: CNBC correspondent Contessa Brewer discussed how the P/C industry is facing mounting financial pressure from escalating litigation costs, driven by billboard attorneys and third-party litigation financing.
- Brewer, a panel moderator at JIF 2025, stressed how litigation expenses are prompting industry leaders to call for tort reform at the state and federal levels, as costs associated with defending lawsuits directly influence insurance premiums for both consumers and businesses.
Conversation Highlights:
Impacts of tariffs versus lawsuits: While insurers are worried about tariffs, “that’s something they can plan for,” Brewer said. “They know what’s coming down the pike with auto parts and used car prices going up, and what it costs to replace those if people crash their cars. But lawsuits are a massive headwind for the insurance industry.”
Impact of excessive litigation: “The issue of lawsuits is pervasive. It’s insidious. And it’s something we just saw with the CEO of Chubb (Evan Greenberg) pairing with the CEO of Marsh McLennan (John Doyle), writing an op-ed in The Wall Street Journal saying something has to be done about plaintiff’s attorneys spurring this, as well as litigation finance that is causing these lawsuits to be very expensive,” Brewer said.
How legal system abuse affects policyholders: Brewer said an excessive volume of lawsuits being filed against insurance is impacting the costs of coverage, particularly in the auto, property and directors and officers lines.
- “It comes out in all the premiums that we’re paying — whether it’s in our personal policies or what businesses are paying for their risk,” Brewer concluded.
Go deeper: Read the Triple-I Blog for more insights from the new Triple-I/Munich Re US Consumer Guide on the impacts of legal system abuse on consumers and businesses.