Houston Daily

TransRe has reported that social inflation is causing liability claim costs to rise faster than economic inflation. The company calls for broader tort reform, increased transparency in litigation funding, and continued engagement to maintain insurance affordability and public trust. This statement was made in a report released by the company.

According to TransRe's 2025 "Social Inflation Overview," social inflation encompasses "all ways in which insurers’ claims costs rise over and above general economic inflation, including shifts in societal preference over who is best placed to absorb risk." The report indicates that legal system abuse, societal change, and generational distrust of institutions have fostered an environment where plaintiff attorneys focus on large-scale verdicts rather than individual claim justification. TransRe warns that these forces mean social inflation "shows no signs of abating" and poses a threat to both the availability and affordability of insurance coverage.

A report by research firm Marathon Strategies found that in 2024, 135 lawsuits against corporate defendants resulted in nuclear verdicts—those exceeding $10 million—marking a 52% increase over 2023 and totaling $31.3 billion, a 116% year-over-year increase. These verdicts spanned 55 industries across 34 states, highlighting the industry-wide nature of the threat. The findings align with TransRe’s assessment that rising jury awards and aggressive civil litigation tactics are significant drivers behind social inflation.

Swiss Re’s "SONAR 2025" report indicates that social inflation accounted for approximately 57% of the increase in U.S. liability claims over the past decade. It attributes this rise to increased litigation, higher jury awards, and expanding liability definitions. The report underscores how corporate mistrust, societal grievance, and weakened faith in institutions are reshaping liability exposures and insurers’ risk-transfer capacity. These independent findings support TransRe’s position that social inflation is a structural issue rather than a temporary spike.

According to TransRe’s official site, the company is a global property and casualty reinsurer headquartered in New York. It is part of the Berkshire Hathaway group and provides treaty and facultative capacity across diverse geographies and lines of business. TransRe emphasizes its capacity, reliability, technical expertise, and creativity in risk-transfer solutions and research, including its Social Inflation Overview. The company's website details its history, operations, and commitment to analyzing emerging trends in the reinsurance market.