Global tort costs rising faster than GDP and inflation

New international research indicates that tort costs are rising faster than both GDP and inflation in three of the five major markets studied, including the U.S., UK, EU, Canada, and Australia.

Michel Léonard, Chief Economist and Data Scientist at the Insurance Information Institute, noted that while the U.S. maintains the highest tort-cost burden relative to GDP, it is no longer an outlier. These rising costs directly impact insurance executives by influencing loss costs, reserving, pricing, and claims severity. The findings will be a key topic at the upcoming Global Insurance Forum in London, where industry leaders will discuss how to manage these shifting litigation environments.