Social inflation accounts for up to 11 percent of losses related to physician malpractice claims, according to the "Social Inflation and Loss Development Report" from Moore Actuarial Consulting.
Social inflation describes the rise in insurance costs for reasons outside of economic inflation, including societal changes.
The report analyzed insurance company annual statement data.
Here are three more notes from the report:
- From 2011 to 2021, between $2.4 billion and $3.5 billion — or between 8 percent and 11 percent — of all medical malpractice losses incurred by physician-focused insurers came from social inflation.
- Inflation accelerated beginning around 2012, with a more drastic acceleration around 2017.
- The pace of settlements larger than $1 million has accelerated in the last decade; large settlements are a significant driver of social inflation.