The American Property Casualty Insurance Association (APCIA) and Munich Reinsurance America, Inc. (Munich Re US) have released a survey examining consumer opinions on certain tactics used by plaintiff lawyers. The survey, conducted by The Harris Poll with over 2,000 U.S. adults, highlighted unfamiliarity with terms like "jury anchoring" and "third party litigation funding" (TPLF). Once informed, 69% of respondents believed these practices would increase insurance costs, while 66% felt they would raise the cost of everyday items.
Key findings from the survey indicated that 67% of participants think lawmakers should restrict lawyer advertising to prevent misleading consumers and reduce lawsuits. Additionally, 68% agreed that high jury awards desensitize people to large payouts and could increase insurance costs.
Regarding TPLF, which involves outside investors funding lawsuits for a share of the award, 77% expressed concern about foreign investors posing national security threats. Furthermore, 78% believe such investments should be prohibited.
The practice of jury anchoring was another focus, with 75% agreeing it leads to larger jury awards. A significant majority (84%) felt plaintiff lawyers should provide factual evidence for their suggested damage awards.
Bonnie Guth from Munich Re America Services emphasized the need for awareness about how these legal practices affect consumers and the insurance industry. She warned that unchecked legal system abuse could lead to higher insurance costs and financial strain on insurers.
Stef Zielezienski of APCIA noted that these tactics contribute to a litigious culture and rising costs. He said that reforms are necessary to reduce consumer expenses and improve insurance availability.
The survey was conducted online in late September 2024 with a sample size accurate within +/- 2.5 percentage points at a 95% confidence level.
Munich Re US is one of the largest reinsurers in the U.S., offering various reinsurance coverages and risk management solutions. APCIA is a national trade association representing home, auto, and business insurers across different regions.
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