Liability insurers adjust to spike in US nuclear verdicts

In 2023 alone, nuclear verdicts increased by over 27%.

The number of high-value verdicts in the US, commonly referred to as "nuclear" and "thermonuclear" verdicts, has risen significantly in recent years. This could potentially challenge not only US-based companies, but also international firms operating in the US, according to Allianz Commercial. 

Since 2020, such verdicts, exceeding $10m, have nearly tripled, whilst the median verdict value has more than doubled. 

In 2023 alone, nuclear verdicts increased by over 27%, whilst verdicts surpassing $100m grew by 35%, according to Marathon Strategies. These verdicts have impacted industries ranging from automotive and chemicals to entertainment.  

Allianz Commercial has highlighted five emerging liability loss trends in a report, emphasising the need for businesses and insurers to address these rising costs.  

The report identifies defective product incidents as the most significant cause of liability claims over the past five years, representing over 40% of claim values. Other major causes include collisions, faulty workmanship, and bodily injury.