Legal system abuse is a far-reaching problem that impacts not only the insurers and defense firms that make up CLM’s membership, but also the insurance industry as a whole and the businesses they insure across many other industries. The statistics reveal the scope of the issue: An analysis from Triple-I and the Casualty Actuarial Society, released in October 2025, notes that legal system abuse and related litigation trends “contributed to $231.6 billion to $281.2 billion found in increased liability insurance losses over the past decade, a surge that far exceeds what can be explained by economic inflation alone.”
Triple-I, speaking to the broader implications of legal system abuse in civil case trends, states, “Inflationary losses, driven largely by [legal system abuse] and social inflation, translate directly into higher premiums and greater capital strain for insurers. The report underscores that even as general inflation moderates, liability loss costs remain persistently elevated.”
The Institutes, whose member companies include CLM and Triple-I, is forming a group that will bring together experts within the organization across its member companies to analyze legal system abuse with the aim of helping the industry understand and, ultimately, counter the trends that drive it. CLM President Susan Wisbey-Smith will participate in this effort and, here, she sheds some light on what to expect from the Legal System Abuse Workgroup.
Q: What is the Litigation System Abuse Workgroup’s mission, and how will it be executed across the Institutes’ business units?
Susan Wisbey-Smith: The Institutes are comprised of more than 20 business units, including the CLM and Triple-I. We created this enterprise workgroup to align and accelerate our collective efforts to address legal system abuse (LSA). The workgroup will be focused on addressing the factors that contribute to LSA, such as third-party litigation funding, plaintiff attorney advertising and litigation tactics, and negative public sentiment about corporations and insurers.
Q: What do you expect the group will deliver by the end of 2026?
Susan Wisbey-Smith: CLM is focused on harnessing the collective knowledge of our community to provide education, resources, and tools to help manage claims involving TPLF and those that could lead to runaway/Nuclear Verdicts. Other business units such as Triple-I and The Institutes Griffith Foundation focus on educating the public, media, and policymakers. The Institutes RiskStream Collaborative and Insurance Research Council focus on data and data sharing.
Together, we will be focused on efforts to advocate for change, educate media and consumers, prevent and manage potential runaway Nuclear Verdicts, and create contributory databases. As non-profits, we will also be collaborating with other non-profits outside of The Institutes enterprise to address the critical issue of LSA.