Reviewing Key U.S. Insurance Decisions, Trends, & Developments
Although recent advances in medical treatments for trauma victims (such as skin grafts for burn victims, robotic exoskeletons, and advanced prosthetics) have extended longevity and improved patients’ quality of life, they have also been known to increase the cost of care.[vi]
[vi] Insurers, as well as defense (and coverage) counsel, have to consider whether their practices/mind sets may contribute to social inflation. As one commentator suggests, “[t]o the extent that insurance company claims departments devote more attention to controlling defense expenditures with cost containment measures than to pushing back against swelling indemnity numbers, they may be penny wise and pound foolish.” J. Theodorou, The Scourge of Social Inflation, R Street Policy Study No. 247 (Dec. 2021).