Advisen

'Social inflation' by the numbers: Advisen Data Spotlight

Social inflation is putting pressure on insurers as negative sentiment against corporations, the #MeToo movement and other inflationary trends drive up the cost of losses.

We analyzed two different types of losses in Advisen’s database and found that the median cost of loss had increased across both categories

The median cost of a single-fatality loss – a case in which there was only one death and no other injuries – has risen steadily from 2011, according to Advisen data.

In 2018, the median cost of a single-fatality was greater than it had been in two decades – and it increased another 16 percent to $5.1 million in 2019.

Previously, the greatest median single-fatality loss in Advisen’s database was $4.1 million in 2000.

The median cost of a gender/sexual discrimination & harassment case fluctuated from $70,000 to $150,000 from 2003 to 2016 – averaging about $100,000 – before rising sharply over the last several years, according to Advisen data.

The average cost of a gender/sexual discrimination & harassment case from 2017-2019 was $2.6 million, an 86 percent increase from the three years prior – $1.4 million in 2014-2016.

Data Journalist Rebecca Gainsburg can be reached at rgainsburg@advisen.com

To learn more about Advisen’s Data call (212) 897-4800 or email support@advisen.com.

*Advisen’s loss data is curated from a wide variety of public sources. Our collection efforts focus on larger and more significant cases. For this reason, the figures in this article may not be fully representative of all cases of this type.