PNC insurers are facing a surge in nuclear verdicts, jury awards exceeding $10 million, but predictive analytics are helping many carriers fight back.

Despite being wildly disproportionate with the facts in a case, these verdicts have tripled since 2020 with a median

award now topping $44 million. Even thermonuclear verdicts over $100 million are increasingly common.

Take the $1.7 billion jury award from an initial $10 million claim

or the $31 billion ruling against a local bar.

This kind of escalation inflates claims costs beyond $15 billion annually,

threatening the sustainability of insurance products. Drivers include social inflation,

growing public mistrust of corporations,

and plaintiff tactics like reptile theory.

Amplifying these trends is third-party litigation funding, where hedge funds bank roll lawsuits for a cut of the payout.

Plaintiff firms also use advanced analytics to exploit weaknesses, shop favorable venues, and profile jurors via

social media. Gallagher Ree reports these trends extend beyond the US,

affecting Australia, Canada, and the UK.

In Australia, high value claims are rising, reaching awards of nearly $14 million, boosted by class actions and increased third-party funding.

But carriers operating with modern platforms like Guidewire are fighting back by using the embedded claims intel

solution. Claims Intel activates at intake. Applying predictive analytics to score exposures and litigation risk.

This includes scoring the likelihood a claimant will retain an attorney or pursue litigation.

Claims intel ensures these claims get the right attention from the right adjusters as early as needed to

deescalate high- risk claims. Carriers can tap powerful litigation management solutions from Guidewire’s partner ecosystem,

including insure tech Vanguard graduate Case Glide, which streamlines litigation management by integrating crucial data directly into workflows.

super important to finally level the playing field so that these attorneys can go toe-to-toe with the plaintiff bar and start winning cases.

Jurors can also access solutions from our insured tech vanguard’s program.

Claim deck for instance provides collaborative workspaces to enhance case management. These and other solutions

enable carriers to predict litigation risks, guide defense strategies early,

and diffuse social inflation and plaintiff tactics effectively. In an era of nuclear verdicts, it’s essential for

carriers to fight back in an ongoing battle they can’t afford to lose.