Houston Daily

The Texas Coalition for Affordable Insurance Solutions announced on X that rising home and auto insurance costs in the state are being driven not just by severe weather and inflation, but also by "nuclear verdicts" and legal system abuses. The coalition highlighted the need for tort reform to protect consumers and insurers alike.

According to the U.S. Chamber of Commerce Institute for Legal Reform, its 2024 "Nuclear Verdicts" analysis explains that unpredictable jury awards can exert outsized pressure on entire industries by raising loss costs and settlement expectations. The report notes that such verdicts can affect insurability and pricing, contributing to affordability challenges in property and auto lines. This context aligns with the coalition’s message that litigation dynamics, not just storms or inflation, are influencing consumer premiums in Texas.

The Institute for Legal Reform’s 2024 "Tort Costs in America" study indicates that total U.S. tort costs reached about $529 billion in 2022, equal to roughly 2.1% of GDP and more than $4,200 per household. The study further reports tort costs have grown at an average of 7.1% annually from 2016 to 2022, outpacing inflation. ILR adds that faster-growing business-related litigation costs intensify pressure on insurance pricing and availability for consumers.

Haynes Boone’s 2025 analysis states that jury awards exceeding $10 million—commonly termed "nuclear verdicts"—are becoming more common and carry significant implications for risk transfer and insurance rates. The firm underscores that these verdicts can reshape settlement baselines and encourage costlier litigation strategies across sectors. Haynes Boone also surveys emerging responses, including procedural reforms and trial strategies aimed at curbing volatility linked to outsized awards.

According to its official website, the Texas Coalition for Affordable Insurance Solutions works to improve insurance affordability and accessibility while preserving market stability and consumer protection. The coalition convenes stakeholders across the state to advance policy solutions and public education. TCAIS emphasizes research-driven advocacy to support a competitive Texas insurance market.