David Perla and Andy Lundberg rebut the insurance industry's social inflation argument
- Risk management & insurance
Co-COO David Perla and Managing Director Andy Lundberg rebut the concept of "social inflation" in a piece in Law360's Insurance Authority.
Perla says: "'The insurance companies are merely using a very clever term to characterize what is an effort to keep claimants out of the court system, and to settle for as cheaply as possible. I don't hold that against them — that's not a bad thing if you're an insurance company...What's good for an insurance company isn't necessarily good for society. That's a larger policy question that they're ducking by calling it social inflation.'"
Lundberg notes that "insurers already help plaintiffs in other ways, which he said shows 'how vacant' the insurance industry's 'moral indignation' over third-party litigation finance is."
