If you’re hearing more about social inflation, and wondering how it’s impacting your clients—and your bottom line—you’re not alone. That’s exactly why PIANJ hosted a recent Deep Dive Panel titled “Behind the Verdict: How Litigation Trends Are Driving Insurance Costs.” And if you missed it, don’t worry—you can still catch the full discussion on YouTube.
What’s driving the surge in insurance costs?
The panel kicked off with a clear-eyed look at social inflation—what it is, what’s fueling it, and why it’s such a challenge for underwriting. From nuclear verdicts to evolving legal theories—like public nuisance and phantom damages—the conversation unpacked how today’s legal environment is reshaping liability exposures across multiple lines of insurance.
Panelists shared real-world examples of eye-popping jury awards and explained how attorney advertising saturation and unpredictable court outcomes are making it harder for agents and carriers to price risks accurately.
Third-party litigation funding: The hidden force behind the curtain
One of the most eye-opening segments focused on third-party litigation funding—a growing industry that’s quietly influencing claims, settlements and even treatment patterns. The panel explored how commercial and consumer litigation funding works, its scale and the ethical and regulatory questions it raises.
For agents, this part of the discussion was especially relevant. Understanding how litigation funding can extend claim cycle times and inflate settlement demands is key to advising clients and managing expectations.
In New Jersey, there has been recent legislative activity that would address third-party litigation funding. Read about—and view in a short video—PIANJ’s top-priority legislation that was introduced in the state Senate and Assembly this spring.
Meet the panelists: Industry experts with frontline insight
This wasn’t just a theoretical discussion—it was led by professionals who live and breathe these issues every day:
- Alexia Cruz, Esq., senior vice president and claim general counsel at Travelers, discussed litigation trends and the impact of social inflation and third-party litigation—informed by her leadership of 1,300 claim legal professionals.
- Adam S. Guziejewski, president of Katz Government Affairs, shared insights on how policy and lobbying efforts drive social inflation—drawing from nearly 20 years of public policy experience in New Jersey.
- Lydia Barbara Bashwiner, Esq., general counsel at Otterstedt Insurance Agency—offered a unique perspective based on her roles as an attorney and claims manager, clarifying how litigation affects both insureds and carriers.
Why it matters
This wasn’t just another webinar—it was a deep, thoughtful conversation about one of the most pressing issues facing the insurance industry today.
Whether you’re advising clients, managing risk or shaping policy, understanding the forces behind rising insurance costs is essential.
If you missed the live session, don’t miss the chance to catch up!
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
