The Economic System as Catalyst for Evolving Liability Regimes

The article makes a case for the evolving system of liability regimes being driven by fundamental changes in our socio-economic fabric. The evolution of increasing liability costs, especially prominent in the U.S., can easily spread to other countries as the same preconditions are found there and systemic contagion takes place. This will pose important challenges to the insurance industry, which will have to better comprehend the key drivers and fundamental mechanisms involved. Provided informed and cautious underwriting takes place, this development represents an interesting opportunity. Keywords: liability regimes; economic system; U.S. legal system