[October 30, 2026]

Triple-I: US Tort Costs Growing Twice as Fast as Economy, Nearly Four Times Inflation

U.S. tort costs nearly doubled between 2014 and 2023, rising from $299.7 billion to $579.7 billion and significantly outpacing economic growth, according to a new report by the Insurance Information Institute (Triple-I).

"Litigation is outgrowing the economy. That gap doesn't stay in the courtroom. It lands in claims, reserves and premiums. Every dollar of tort costs adds to insurers' losses and contributes to higher and less affordable insurance premium rates," according to Michel Léonard, Ph.D., CBE, chief economist and data scientist at Triple-I.

The analysis draws on the U.S. Chamber Institute for Legal Reform's (ILR) 2026 report, International Tort Costs: A Comparative Analysis of the United States, United Kingdom, EUG5, Australia, and Canada, prepared in collaboration with Triple-I.

Key Findings:

• Twice the Economy, Nearly Four Times Inflation: From 2014 to 2023, U.S. tort costs grew an average of 10.38% annually, approximately twice the rate of nominal GDP growth (.17%) and nearly four times the rate of inflation (2.74%).
• Two Liability Categories Account for Three-Quarters of U.S. Tort Costs: Other liability ($249.31 billion) and personal auto liability ($188.13 billion) accounted for 75.45% of total U.S. tort costs in 2023.
• Commercial Lines Account for Nearly Two-Thirds of Tort Costs: Commercial lines represented $377.73 billion in tort costs in 2023, compared with $202.01 billion for personal lines.
• More Than $163 Billion in Self-Insured and Uninsured Costs: Self-insured and uninsured parties bore $163.25 billion in tort costs in 2023, representing more than one-quarter (28.16%) of the total.

Rising U.S. tort costs reflect legal system abuse, higher settlements, aggressive plaintiff-attorney advertising and third-party litigation funding. Nuclear verdicts and expanding liability theories add uncertainty and defense costs, particularly in product liability, commercial disputes and mass torts.

"Legal system abuse has economic consequences that extend well beyond the insurance industry," said Sean Kevelighan, CEO of Triple-I. "Businesses and consumers ultimately bear these costs, making greater transparency and fairness in the legal system essential to improving insurance affordability and supporting greater stability."

About the Insurance Information Institute (Triple-I)

Since 1960, the Insurance Information Institute (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 The Institutes®, 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.

Triple-I is a registered trademark of the Insurance Information Institute. All rights reserved.

About The Institutes

The Institutes® are a not-for-profit dedicated to helping people and organizations succeed in the essential disciplines of risk management and insurance. Through numerous affiliated business units and brands, we educate, elevate, and connect students, professionals, and organizations by equipping them with the knowledge, skills, and collaboration they need to tackle the most complex risk management and insurance challenges. Backed by more than 115 years as a trusted knowledge partner, we empower people and organizations to create a more resilient world.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20261030778188/en/

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