Premiums Are Rising, and Insurers Say Lawsuits Are to Blame (2)

Insurance companies invoke a litany of reasons for raising premiums. Inflation has been a big one since prices took off in 2021. There’s a rise in car accidents involving drivers distracted by their phones. Climate change has fueled an increase in natural disasters destroying homes. Fraudulent claims are a perennial. And these days, a new justification is taking the spotlight: social inflation, a term that generally refers to rising legal costs.

Industry groups say there’s been rampant abuse of the legal system, with lawyers and profit-seeking outsiders spurring a rise in increasingly costly lawsuits. Social inflation came ...