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For Immediate Release��
Loretta Worters
New York Press Office
917-208-8842
lorettaw@iii.org��

MALVERN, Pa., June 16, 2025 – The (Triple-I) and (Munich Re US) have released a new consumer guide highlighting the growing impact of legal system abuse and its negative financial impact on consumers and businesses in the United States.

A Consumer Guide: How Legal System Abuse Impacts You explains how litigation tactics, such as aggressive attorney advertising, third-party litigation financing, and persuasive jury “anchoring” techniques, are burdening the economy with excessive tort costs, slowing down settlements, and diminishing the actual awards received by plaintiffs.

“Legal system abuse has driven up litigation expenses and costs, impacting businesses and consumers across the United States,” said Joshua Hackett, Head of Casualty at Munich Re US. “If left unchecked, these rising costs will continue to increase insurance premiums and limit coverage options.”

As reported in the Triple-I/Munich Re US consumer guide, legal system abuse has resulted in:

• $6,664 in added annual costs for the average American family of four
• 4.8 million jobs lost in the U.S. economy due to excessive litigation
• Over $160 billion in annual tort costs for small businesses

The consumer guide also dispels the myth that plaintiffs always derive a substantial benefit from large settlements. In many cases, third-party investors and legal fees consume a sizable portion of the award, sometimes more than half. Additionally, the plaintiff may incur other costs such as medical expenses and case fees, which could affect the final settlement they receive.

“While billboard attorneys use exploitative advertisements promising big dollar settlements, the truth is consumers and business owners can be left with less money, sometimes substantially less than if the likes of third-party litigation financiers are involved,” said Triple-I CEO Sean Kevelighan. “The big business of U.S. law is increasing costs for everyone, which is why it’s vital Americans understand what’s happening and push for legal reform.”

The Triple-I/Munich Re US consumer guide urges consumers to educate themselves about legal system abuse and its impact on the rising cost of insurance coverage. The insurance industry continues to call for greater transparency in third-party litigation financing, curbs on inflated medical billing and more responsible legal advertising.

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About the �Ӱ�ԭ�� Information Institute (Triple-I)
Since 1960, the (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate, and connect consumers, industry professionals, policymakers, and the media. An affiliate of , Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers, and reinsurers – serving regional, national, and global markets.

About The Institutes��
are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world.

The Institutes is a registered trademark of The Institutes. All rights reserved.��

About Munich Re US
(Munich Re US) is one of the largest reinsurers in the United States. We provide reinsurance coverages, specialty reinsurance, and risk management solutions to commercial and personal lines insurance carriers, agents and brokers, program administrators, and managing general agents. Our admitted and non-admitted insurance company affiliates offer specialty insurance products. We provide insurance carriers with white-label products to help protect against the devastating effects of natural catastrophes and emerging risks. We believe that by looking out for our clients’ best interests with innovative risk solutions, we can help build more resilient communities and close insurance gaps.