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Why are lawsuit payouts skyrocketing faster than inflation?

Tsz Chai Fung, Lie Ma, Liang Peng, Fang Yang

May 26, 2026

Researchers analyzed two decades of US jury verdicts and settlements to isolate social inflation—claim costs rising beyond economic inflation. Verdict awards jumped over 100% from 2020–2024, while settlements barely budged, suggesting jurors have become far more generous to plaintiffs. The effect hits hardest in states without tort caps and cases involving corporate defendants.
Published as Quantifying Social Inflation in Liability Insurance with Advanced Statistical Methods arXiv:2605.27265
Read the original paper →