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The Myth Of The Liability Insurance Claims Explosion: An Empirical Rebuttal, David J. Nye, Donald G. Gifford

Vanderbilt Law Review

A perceived crisis in the nation's liability insurance system erupted in 1986. Some businesses saw their insurance premiums double in a period of two years, and others found the coverages they required to-tally unavailable. While trial lawyers and consumer groups asserted that insurance company investment and pricing practices, as well as huge profits, had caused the crisis, others alleged that an increased"claims consciousness" among the American public had spawned the liability insurance affordability and availability problems. Richard Berman, a national representative of the United States Chamber of Commerce, proclaimed that the judicial system had "gone berserk" and that litigation was …